Well, nobody here yet. Now KZAP is talking TA on the SWAT thread. Just to clarify things a bit:
I don't TA just any "penny" stock. I choose fully reporting small and midcap all of which have institutional ownership. Not too many people are actually cognizant of what I look for in the technicals but it starts with a chart analysis (uptrends, downtrends, support, resistance, past activity, breakouts and volume) which excludes about 95% of stocks and moves through a finer and finer screening process. The first stage is to determine whether or not the intermediate-term stochastics momentum indicator is at a level of historic bullishness based on the particular stock's past trading performance going back up to 11 years. Moving linear regression is then compared to moving avg. and must conform to a certain optimal configuration. MoneyFlow, Positive/Negative volume index and accumulation/distribution and so on through a battery of indicators. It's not your everyday garden variety of TA that most people think of. In other words, there's TA, then there's TA. I use several different chart techniques when the particular stock calls for it. (the IL, the MIMBO, the PGDCEB and other price projection techniques are my own. After teaching them to a couple groups of people, many of them have already improved there trading abilities.) I'm wrong sometimes but that's what cutting your losses is for. When I'm right, look out. COBR, IFCI, RECY, VOXL, MVSI are no longer in the price range considered "penny". I look for a 3 month time frame and approx. 90% of the stocks I have picked all year have moved quite significantly (20% to 400%) in 3 months or less. I have always advised to pick a REASONABLE % gain at which to sell and don't worry if the stock keeps going. If anyone thinks that just because I picked a stock it should go up everyday forever or leap immediately out of the gate, they're fools. If anyone chooses not to believe that, when done right, TA can be applied to stocks under $10, fine. You won't convince me though so there is no reason to approach me on the subject.
Doug R |
