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Pastimes : ASK Vendit Off Topic Questions

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To: Clappy who wrote (15203)	10/24/2000 8:06:13 PM
From: Vendit™	Read Replies (1) of 19374

In general, what is your thought process when you look at a chart? I think it best to answer your question in an exchange between you and I rather than me writing a boring 1 post novel explaining my thinking process when I look at a chart. My goal when I look at a chart is to try to find it's short term tops and bottoms. I like to enter a stock just as it jumps off a bottom and a new uptrend is born which is confirmed first with stochastic 15-5-5 (slow as you pointed out) as well as a previous day or two candle reversal patterns. This is much less complicated then I make it sound. I use MACD 8-17-9 as my secondary indicator. It has not normally signaled when I make entry. 8-17-9 will normally trail in signaling about 1 1/2 days after stochastic 15-5-5 signals. When I see MACD finally signal this usually means a nice one day rise will occur on that day with heavy volume. This is why I say MACD is my momentum indicator. So to recap: The line up is a volatile stock which has been trending down, must have a lot of daily volume on average, 1mm or more is good. 1- Look for a reversal candle on the down trend. 2- Look the next day for a stochastic headed towards crossover under 30 on the range. Buy when you see cross over contact as long as no other factors like a tech sell-off is looming. Hold while the fast line stays above the slow line and both are heading up. The steeper the angle up the harder the move will be. Keep a close eye on the fast line for any softening in it's angle. 3- Hope MACD signals a day or so later. 4- Pay attention to these same signals intra-day and know at all times where very short term lower support is. Be willing to allow an unemotional stop loss order to execute so as to preserve capital and or lock in profits. 5- Realize that these signals work equally as well in any time frame. Daily, 30 minute, 15 minute, 5 minute and down to real time 1 minute tick charts for day trading. Once in you immediately start trying to find the top.<g> This is a brief overview of entry. Other import things to learn how to apply are: Trend and support/resistance lines and levels. Candle reading. Learning how to interpret >> Williams R% Money Flow RSI (my least used indicator) Stochastic MACD

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