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Montréal
How do you classify a daytrader?
I think your terminology of a daytrader and the way I trade are two entirely different animals.
The way I trade the -- MACD -- a lagging indicator, no way would it work. The price would be gone before you get a signal to buy or short. The RSI in the way I trade gives too many fault signals. Being that it can be overbought or oversold, dependent upon where you're at on your chart. I have seen too many times that it would be overbought and you go in for a short, but all the stock was doing was resting coming off its first leg up and then proceeding on.
Your Money flow indicator, I have never used. So I have no comments on that, but I have used the --money flow Index indicator -- but not as a stand-alone indicator. I use it as a confirmation indicator on the Bollinger band.
In reference to your --RSI-- it would be a good idea to use a first derivative for a signal. This will help the overbought or oversold signals that you get from the RSI or fault signals.
Most of my trade comes from breakouts from the Bollinger band up or down. This is where you get a great deal of volatility, but the only thing you have to watch for is that serpent which I call the head fake.
If I am trading the trend up or down. I'll use the Bollinger band, a 50 EMA and 27 EMA crossover system with the --correlation-- indicator as a confirmation of the crossover. I also use a two moving average band system, one being the 10 EMA high and the other being the eight EMA low.
All the above is based on the premarket hour formula that I have built that has a one day look back period. This formula has a certain criteria for its picks. This is where all of the above start to come into play.
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