Thanks obg. I notice the relative strength index hasn't really skyrocketed or plummetted recently. That spells interest (like we didn't see that last week). I agree the overall fluctuations in the market are going to point our direction up and down. I guess what I want to know is by how much. If the relative strength remains solid does that usually mean we'll be holding a price range, and if the RSI weakens does that mean we should expect to drop through our previous bottom as the trading begins to stagnate?
I was always of the impression (mind you this is rather general in scope) that once the 20 day moving average crosses the 50 day moving average with the RSI in the low (-20) range, then it should signal a buying range starting. The only thing I've always done is waited to see if the 20 day moving average moves further above the 50 day MA or drops back below (kind of like a hiccup in the stock price direction). If it goes below again then I would hold off the buy.
Does this make sense to you or anyone else into TA strategies?
Thanks,
Mustangman