frict_inv,
I been away from participating much on this forum due to my wife's sickness for the last month and a half, but I think I can answer your question.
In terms of whether the stock has ever had a markup period in the past: it is not necessary but it does help to be able to see that the company has the capability of being a high flyer and not just a bottom dweller. The overall chart helps to determine whether there is high probability that the stock can achieve some portion of that again. However, that is not required by Ted's methods and I will admit, many relatively new stocks/companies make the biggest move of their lifetime on the first major move up. But in any case, we need to see enough price history to allow for the price formations that we look for to be fully developed.
We also prefer to stick to mostly the major American., Canadian, (and apparently for I2000, Mexican) exchanges. The reason is that for the price action to have the desired psychological effects on the public, the stock needs plenty of visibility to a large portion of the public. That doesn't happen with stocks listed on minor exchanges. Even foreign exchanges don't have the visibility we want to the general American public. An extrapolation of this is that I2000 and I don't even trade ADRs. Actually, I2 does have a couple of ADRs that he bought a number of years ago, but I think he recently told me that when he sells those, he has not intention of buying ADRs again.
None of this means that the stock you are looking at will not give the desired price advance but we are playing a probabilities game in trying to reduce the risk of failure and increase the probability of the type of success that Ted has indicated is possible by his described methods. For myself, I'll stick to stocks on our major markets.
Happy Trades to You.
WEagle |
