Hi
@Jayza1988 Great question. Wilder is famous for creating a number of Technical Indicators. In short however, the answer to your question is no. However most of Wilders indicators are widely used and reliable. It is just that every trader has a different way of how they operate in the markets. I should add however that I do know a number of successful traders that do use the RSI though.
When looking for entry or exit points it is basically price, volume and a couple of moving averages at best. I will work out at what price I am prepared to enter at, and record that into my trading plan. Then in my trading reflection diary, once the trade is closed, I will always go back to look at the entry price I paid to see how close to my predetermined price I was. This allows me to keep an eye on slippage so speak. It really allows me to look back and reflect on whether at the time of entry I was feeling Bullish, Tired, Bored, Revenge Entry etc. The point of doing this is to keep a check on a what level of the bar did I get my entry, ie towards the top of the candle or towards the bottom. Obviously you want your entry price to be at the lower part of the candle when entering and when selling at the top of the days bar.
I am a huge fan of the Wykoff methodology and am grateful to Jako64 for the time he spent explaining it to me. To be frank it was a strategy that I am only a beginner in, and over time will learn more as I go. Some people have the ability to pick up and run with the Wykoff method, but I am not one of those unfortunately. So it is work in progress and if anyone has the ability to give it crack at learning, I would highly recommend that you check out the Wyckoff thread and start read (that is assuming that you have already read the STT library articles)
So what do I look for re entries.
1. I run only one watchlist as I am always attempting to dumb down and expedite how I operate. I found in the past that I ran too many watchlists and could not keep an eye on them all
2. I am always looking for volume variations in any stock including either an increase but also a decrease as well. The increase in volume however adds the most stocks of interest to my watchlist. However I do want to say that many stocks that go on to achieve major gains can be done so by a deliberate and almost by stealth method of accumulation. This method I believe is done by pros or groups whom want to build as large a position as possible in a given stock, but do not want it to be highlighted in positive volume scans. It is also a method that anyone else that trades the markets can use as well to build a position.
3. Lastly the STT is always full of hot stocks and a wealth of market related information, caveat except for Friday nights when everyone lets their hair down. So my entries are often taken with a number of different sources having an influence on how I will go about an entry. For example a pilot entry is a good way of getting into the stock to see how it feels so to speak. Once in you really get a sense of what is actually happening and can implement your trading strategy which is either add or sell out hopefully even before a loss is taken. The latter is a skill that I believe can really help traders to hold on to their money. Again as they say you are either right, or right out. So in the real world of trading, stop loss's and their deployment will determine anyone's success or failure.
4. Exits - foremost in my mind is a saying "it is not how much one makes in the markets, it is how much one is able to hold onto that matters most" So pre-determined targets are a must imo. Actually in saying that there was a post I read recently where
@Waiting4Godot posted a comp entry for VOC. Click on this number to be taken to the post
19847273.
I was going to post a suggestion on the weekend to
@Freehold that his post should be added to the STT Library. IMO it is professional template that shows how a professional trader operates in terms of pre-planning a trade, waiting for the right conditions to be met, working out predetermined stop prices and profit levels before the position is entered. This goes a long way to eliminating traders bias's and emotions.
Caveat: Most trading strategies that are used can be profitable. However it is what the trader does with it that decides whether it is adhered to or deviated from. This in turn determines the outcome either as a profit or a loss. Some of the most basic trading strategies are the best. Lastly any trading strategy should be one that you choose that takes into account your own comfort levels, capabilities, type of trader you are etc. That is a topic for another day.
Hope that helps
Cheers
GF
