Good Week. Even though the markets were choppy and difficult to trade, I did really well. One thing that I want to share with everyone is an observation that I made just yesterday. I should have noticed it sometime sooner, but I guess I wasn't looking hard enough.

The Buy / Sell arrows are very closely related to MACD crossovers. Each time a new arrow appears, the MACD (with default parameters) has crossed or is about to. I am using the Zero-Lag MACD that Equis published over a year ago. That was an interesting observation and I hope it will help you.

I am still pleased with the RMO and its performance. Although, I would like to say that some of my trades are not based on that system, so my performance it slightly skewed. I am certainly not going to give up what I have learned to date...

But the RMO system has been a clear benefit to me and I would certainly recommend upgrading to MetaStock 10 to see it and use it. Its main drawback, from what I can see so far, is that it tends to enter some trades a little late. But that is really being picky. Most of what I am seeing is very helpful.

Some specifics: If you see a Blue or Red Arrow, before the bar itself turns to the corresponding color, it is definately telling you to watch out for a change in direction. For example, if a stock is going down (bars are red) and a Blue Arrow appears, but the bars are still red, then wait until a bar turns blue on a closing basis. Now you have a Blue Arrow and a Blue Bar, even though the Blue Arrow may be many bars back. If any subsequent bar turns blue and goes above the first blue bar (after the Blue Arrow), you can enter that trade and it seems to be a good entry.

Confusing enough???

I tried to make that clear, but it is hard to describe without a chart. If someone can tell me how to post a chart, then I will show you what I am talking about. But the concept is clear enough. You are looking for any sign that the chart is going to change direction.

More to follow...