Goldtent TA Paradise

SQQQ

1. Fullgoldcrown says:

   June 12, 2016 - 7:56 am at 7:56 am

   Personally I don’t like using the 3Xers for charting

   There is decay to consider and it skews the charts badly

   Why not just use the QQQ when deciding to enter SQQQ or TQQQ ?

   • Mark says:

     June 12, 2016 - 3:08 pm at 3:08 pm

     I used to be in the same camp FGC but my 3X ETF charts have been holding up well and appear both predictive and actionable. It actually makes sense if you presume the rate of decay is constant, therefore there should be no incongruities in the chart…the structure should still be valid although the geometry will likely look a little different than the unleveraged equivalents. Think of it as a first order equation where your decay constant can easily be obtained, whereas the unleveraged version is simply a linear relationship. The explains many things in nature and I don’t see why it cant be applied to a financial chart.

2. pedro_deleon says:

   June 12, 2016 - 10:55 am at 10:55 am

   A turn is a turn. And an impulse is an impulse.
   At least the way I approach charting, it makes not a whit of difference.
   No doubt some methods yield different conclusions.

   I will say that some leveraged etf’s are more problematic if they are thinly traded.
   But that applies to any underlying as well.