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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (141)	6/6/1999 7:26:00 PM
From: Tai Jin	Read Replies (1) \| Respond to of 18137

OJ, Since I prefer multiple point gains, I look for longer term trends. Sure, you can trade for fractions, but longer trends can offer many points, especially in the Internet stocks. Of course, the increased volatility means that it's important not to get shaken out too often. Sometimes it's good to step back and look at the chart with a slightly longer time frame. That puts the stock movement in perspective. And I prefer candlesticks since they are visually easy to read. You can use candlestick analysis, but I don't think it's very useful on a short timescale. I look for chart patterns which might indicate a pending breakout or breakdown. I may draw trend lines and use moving averages to determine trend and possible resistance and support zones. I also use DMI/ADX, MACD, and stochastics to look for reversals or confirmation of trend. And don't forget volume. If the volume is decreasing as the stock moves higher then it is probably getting close to a top. I would look for confirmation among two or more indicators before taking action. The direction of the intraday trend is also determined by the daily trend. Look at the daily chart and see if the stock is at a support or resistance level. If the market conditions are favorable then it will most likely bounce off support. So the intraday trend should be up. If the daily chart shows a reversal to the downside then the stock will probably continue down intraday. I would recommend you read some books on TA and develop a good understanding of chart patterns and how to interpret the technical indicators. "Trading for a Living" by Dr. Alexander Elder and John Murphy's "Technical Analysis of the Futures Markets" are good. ...tai