[badcharts]

Hi All,

I'm re-reading some sections of Stan's book "Secret's for profiting in Bull and Bear markets"... two points I need guidance on:

1- p.25 Article 3. Do not use 30 week Simple moving average, but the 30 week Weighted moving average. Can't believe I oversaw that most important point. What are you guys using? Any experiments?

2- p.26 Article 5. Don't buy if Mansfield Relataive Strength Indicator is in a downtrend, even if above 0 line. I knew about crossing over the 0 (from neg to pos) was bullish. but had glossed over the first fact.  By this mesure, do we have to wait for MRS to turn upwards before we enter after a pullback?

To go even furthur, does the calculation for the Mansfield Relative Strength Indicator change? Instead of using the simple MA, we should use the weighted MA?

(currently digging here => https://stageanalysis.net/forum/showthre...d#pid10033 )

Thanks again in advance for your feedback!

Regards,

Patrick

On point number one, I think malaguti explained it well in the example you referenced. I've experiemented over the years with it personally, and originally thought I needed to use the weighted moving average as that what he was using in the book. But as malaguti explained it was purely because that's what the Mansfield charts service provided at the time. I think I made the switch to the 30 week simple moving average after reading numerous Global Trend Alerts reports in 2012, as I managed to get a trial for a short period when I contacted him with a number of questions back then. The Global Trend Alert was also when I learnt about the additional substages for each stage. i.e A & B, and + and -, which helped me get a much better undertanding of the Stages.

One point 2. If the Mansfield Relative Strength Indicator is in a downtrend, even if above 0 line then don't buy. On this I've found the alternative way of displaying the Mansfield Relative Strength indicator to be invaluable, and is what I display on every chart I post. As the zero line is itself a moving average, so all you have to do is to show the unflattened indicator with the "zero line" displayed as the moving average, which I show in the thread of how to create it here: https://stageanalysis.net/forum/showthread.php?tid=31

As the slope of the "zero line" gives you additional information about the relative performance versus the index. So if the "zero line" is still sloping downwards then I avoid. But if it's flattening or turning up, then and the indicator line moves aboves it and it's most recent high then it's in good shape. Then you just have to make sure all of the other criteria are in line

Hi Isa,

Awesome! Thanks for the feedback! 

Patrick