Friday, October 21, 2011
Buy RUSS - $45.38
It appears to me that the daily cycle for the US Dollar has bottomed today on Day 26. I could be wrong, of course, but this late in a cycle that typically lasts 20 - 24 days I am guessing that if I am a little off it is likely to be by not too much.
With that thought I decided to test drive some Direxion Russia Bear 3X (RUSS) with a purchase at $45.38.
This 15 minute chart shows a True Strength Index (TSI) indicator break with BUY signal.
Above the TSI indicator is a custom indicator I concocted some time ago and have been experimenting with more recently. It simply indicators when certain technical conditions are active, such as a positive close for that bar, or when a reading of an indicator, such as the TSI, but also the Demand Index and the VolumeFlowIndicator, reaches a desired measurement. When all conditions, or those that I arbitrarily deem most important are then satisfied, the entire column is then highlighted, thereby drawing visual attention to a potentially significant buying opportunity.
Obviously, when none of the indicators are flashing a favorable condition price is usually in a sharp decline (SELL signal). In any event I plan to craft another of these concoctions that specifically attempts to identify sell signals, as opposed to buy signals.
My TSI Trading record has been updated.