(C) 2016 William Schmidt, Ph.D. Last edited 1/10/2016
All rights strictly reserved....
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QuickSilver is a set of TigerSoft programs that pay close attention to
the direction and velocity of a stock's or ETF's 5-day ma and its daily trading
volume in conjunction with Closing Power and Accumulation Indicators.
It is not meant to substitute for good intermediate-term trading skills.
You will often find volatile stocks making big gains for traders who watch
the changes of direction of the 5-dma. It is clear that many aggressive traders
are already using this simple system. TigerSoft lets you see the effectiveness
of this approach for the entire last year's trading by simply choosing
Signals2, Moving Average Turns and then 5. This shows that there are often
long periodswhen the 5-dma brings too many
I think the trick here is to be selective. Trade short the head/shoulders' patterns and
breakdowns below well-tested support and and long the flat topped breakouts.
Our Hotline always looking out for these opportunity-patterns. QuickSilver
gives you a way to trade them more aggressively and with more confidence.
Users may build a 6 month chart to help get the best short-term indications for a
stock or leveraged ETF. Place a chart on your screen and pull down Operations
and choose 6 months' chart. The volume and 5-dma are much easier to see,
On the right side, note the annualized Rate of Change of the 5-dma, the
pivot point and whether volume is rising or falling on the price move. Rising
volume helps confirm the move.
We wanted to give traders a new way to see short-term direction changes
and to see support and resistance from the point of using a 5-day ma.
When an ETF's 5-day ma annualized ROC (annualized rate of change of the 5-day ma)
is low, between -250% and +250%, the upper and lower bands around the
5-dma are apt to bring reversals. See example below.
When the 5-day ma ROC is moving up or down very quickly, above +500%,
the 5-dma will like act as support if it rising and resistance if it falling.
Turns in direction of the 5-dma give traders a chance to close out extended
positions, even when the Closing Power has not yet broken its trend.
Here we use the 5-day pivot-point. It tells us at what point a rise if prices
will turn up the 5-day ma and vice-verse.
With the QuickSilver tools we can be more aggressive in buying and selling leveraged
ETFs. But we still want to factor in Peerless, the Accumulation (IP21) as well
as Opening and Closing Power. When Peerless gives a Buy or Sell, aggressive
traders will want to consider trading FAS (above) in the expected market direction. Having
QuickSilver, we can watch the decay in prices very closely after a Sell, like the one
Peerless gave on December 29-30, 2016.
The biggest movers will breakout out or below well-tested
trading ranges and show big jumps in volume. Tiger now offers a program
to show the stocks and ETFs whose 5-day ma changes. Use these command:
PEERCOMM + CHART-2016 + RUN-SETS (top left) + QUICK...
for the desired directory, like LEVERAGEs.
When finished, then graph the stocks in the flagged groups named MA-5TDUP
or MA-5TDDWN
And we also aggressive traders the 5-day ma ROC ranking, as shown on the
Hotline each night. The suggested rules for trading it are shown on the Hotline's
Quicksilver Page. This very short term oriented, perhaps only a day or two
in the most powerfully rising and falling leveraged ETFs. QUICKSILVER RANKING.