Stan, nice post. Lots of Dark Clouds on Boca tonight all day and night, but I like the piercing line/dark cloud as well for reversal, I would only add range contractions, some excellent volatility indicators (I have been working on a few), and also Gap Strategies that are not antiquated because they were developed BEFORE we had these amazing high flyers. I've been work on those as well. Buy Stops and Trailing Stops and Stop losses are more important now that we have such high flyers, more so than ever before.
Another area of extreme importance for the daytrader mostly is the morning session which can reverse as as soon as the 'high or low futures' are already factored into the averages. Look for reversals in late afternoon from morning sessions and stocks that reach their selling/buying CLIMAX and EXHAUSTION stages more quickly because of the spikes both up and down.
Most of the "strong stocks" keep breaking to new and higher highs and the only way to snag them is in that 'little area' where the velocity, range and volume contracts, that is NOT NECESSARILY after the first gap up but perhaps after the second or third. The same will continue next season as the last 15, with different names but the same results (instead of an PUMA, CAMP and ELNT, we'll find others) and there will always be other sectors with 'hot techno advances' that will soar (i.e. VSTR, VIAN, SCNT,AUDC,PHCM,FDRY, CMRC etc. )
Shorting will be "selective" and not down the line and long term shorts IMHO will have no place except in stocks that are worthless, which we don't deal with here anyhow.
Finally, my own strategies not necessarily adopted by others is to continue to scan for stocks that first have strong fundamentals and only then enter them on technical buy triggers. There will be no trading without discipline, homework and preparation, risk management, and proper balance of fundamentals and/or technical analysis, all the rest is a sure prescription for losses. Guesswork, flying blind, trading without strategies but onfeelings, is for betting in Vegas. |
