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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: rrufff who wrote (3305)	1/1/2005 4:11:14 PM
From: Vendit™	Read Replies (1) of 8752

Hello rrufff, Nice to see you over on the board. SIRI kind of lost its punch last week but as always will recover and regain momentum. I am still expecting to see it hit those upper targets soon. Back to your question about T/A and micro caps. For T/A to be an effective trading tool, a stock has to have two key ingredients, volume and volatility. Those two ingredients create the rolling patterns that allow technical oscillators like a stochastic to measure price extremes and tell the trader when the stock is in an over-sold or an over-bought condition. You also have to have an orderly market. Once you have the key ingredients you can trade a stock using a couple of simple oscillators in any time frame. Many micro caps trade on low daily volume and have sudden daily volume spikes that are caused by hype. There is no way to measure that using T/A. I personally maintain a list of $2 stocks that have high daily trading volume that have reliable historical chart histories. A fishing hole if you will. You may want to consider doing the same or feel free to use my list which is freely available on my website. Did I come close to answering your question? Reid

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