e-mail <<I am wondering if you could provide an overview of the Watch List to those of us still trying to figure out how best to use it but are not able to make the commitment (yet) to the trading room.>>
marketgems.com
marketgems.com
marketgems.com
WATCHING A WATCH LIST.. lists of stocks and general triggers are not enough information.. we try to graphically DEPICT WHY.. this stock is chosen.. What is its position in regard to its historical price pattern? We place stocks that are possibly close to a technical BUY or SELL SHORT SIGNAL... the direction in which the trade resolves itself is posted with a weight to the upside or downside. But WHEN a buy signal occurs can be viewed by MULTIPLE CHART TIMES.. that is why we post usually (when the stock is particularly volatile) both the intraday chart and the daily chart (embedded so you can actually SEE how the candlestick daily bar looks next to the intraday chart range of candlesticks.
Then we post IF and When scenario.. in case the market internals go one way and obliterate the stocks natural prediliction to go in another way. If there are very large morning gaps or if the market internals suddenly explode in a particular reveral period, we would like TO GET INTO THE STOCK and not wait for daily chart triggers that by this point are 4 or 5 or even 10 points away!
► We run searches on breakouts that are proprietary but they do include looking for stocks that gapped up or down, that reached a particular major support or resistance line, or the chart pattern (triangles, wedges, etc) are close to finishing a particular pattern..
► We also run searches on Point & Figure breakouts and we like double tops and double bottoms especially
► The entry is based on having a particular buy situation set itself up (i.e. the daily chart trigger is met) or an intraday buy situation. Stock A has been in a 2 day sharp downtrend.. the daily chart is still very weak but there were signs that the INTRADAY CHART MIGHT BE breaking out.
Here we would need time charts.. a 60 minute 5 or 10 or 15 minute (preferably one of each and a daily).. If the 10 minute chart shows a continuation of the downtrend (say a 3 day 10 minute chart).. and especially accompanied by an opening gap, we could assume that if the stock moved down sharply for two days, and the stock is basically near the support level, it might exhaust itself and reverse back to the upside. This move back up will often follow a reversal bar (say on the 10 minute chart) and the entry will be as the following bar takes out the reversal bar high (for a short its reversed).. If the stocks gaps up or down so much the daily target for entry might be far.. so here we look to the intraday chart for our reversal patterns.
► When we enter on a confirmation of the reversal if the stock continues in the same direction as the new break out, we might conceivably MATCH the intraday move with the original DAILY chart trigger.. (look in the three watch lists I posted to the archives and you will see Many examples)
Let's say a stock has a buy trigger at 25 but it opens at 22 after a 3 point move down. So do we wait for 25 from 22?
Not that is not necessary, if after this three point move down it reverses say at 23 1/2 and confirms the reversal it would be a buy right there.. if it then moves up to 25, you have a move to a legitimate pivot point or resistance level.
If you've studied the charts after a few days, the patterns and reversals we look for will repeat until they have become part of your own strategy. That is why we are sticklers for posting our custom charts daily.. its not enough to have a link to a chart.. you need to SEE the same pivots that we saw and internalize the same visual memory of the chart.. so the next time and the next you have a 'visual memory' of what you saw and you can pick it up more easily ...
We don't have an infinite number of reversal patterns we have just a few time tested simple ones.. some of them are reversals at support and / or resistance areas hopefully together with a candlestick reversal pattern and if you really lucky you get a volume move and even (okay you might not be that lucky) an oscillator and/or trend indicator confirming.
This why we will help with intraday updates.. and of course the room provides the robust and live interaction, but after a while, if you can't come to the room,because of a part time job, or some other reason, you will make do with just the watch list and some intraday updates. The only thing the watch list doesn't have is animation, where a little wizard will point you in the right direction.
That little wizard ia alive and well and will be in the trading forum probably in a few weeks. |
