Hi Mark,
MSSN not a 1-2-3-4, at least by Cooper's definition, just a 1-2-3 setup and ADX is still low. Jeff says the following must be present for the 1-2-3-4:
1) 14 day ADX > 30;
2) 14 day +DI > -DI
3) a 1-2-3 correction (3 consecutive lower lows or any combination of two lower lows and an inside day)
4) on day four, buy 1/8 point above the day 3 high (we might now redefine this as the setup was designed for higher priced stocks and was developed in the pre-decimal days when a tick was 1/8 point).
MSSN criteria:
1) ADX(14) = 27.4
2) +DI(14) is above -DI(14)
3) 1-2-3 setup met (lower low, lower low, lower low)
4) today's high was .02 lower than yesterday's high.
Today MSSN was an inside day, so the 1-2-3 setup continues, and if tomorrow it trades above the 2.47 you identified and you want to lower the ADX threshold, it might go. Volume falling however and one ignores the given criteria at one's peril -- the 1-2-3-4 is designed to enter a strongly trending stock (hence the ADX score) on a pull back.
FWIW the following 9 gizzard stocks (Close 2 to 12, Float < 60M or Shares out < 80M, avg vol 125K) put in a 1-2-3 setup today: EPMD, EPMN, IVAC, NERX, OXGN, PACW, PDYN, BANS, VXGN. And VANS actually satisfied the 1-2-3-4 today as well.
Peace and Justice --- Patrick |
