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

To: - who wrote (302)	6/8/1999 3:53:00 PM
From: Cian	Respond to of 18137

Thanks Palo Alto for the gap info. I'm a Canadian daytrader on the Toronto Stock Exchange (TSE) only. For what it's worth, to identify overnight gaps I monitor both percentage gain and volume using a stock scanner program that can be adjusted for the price range of all stocks on the TSE I'm interested in. I monitor the program at a minimum of 4 times per day. The most important being an hour after the open and 45 minutes prior to the close. For overnight gaps I'm looking for the 52 week price or volume hi. In the Canadian experience if volume or price is at the 52 week hi it is "almost" a 95% certainty the stock will gap the next morning. I also monitor a number of boards for info on fast moving stocks, an example is a Canadian $5.00 and Under board that has some people whose "instincts" I trust. But always do your own DD, ALWAYS! I agree with you that an uptick at the end of the day is important. I generally find that if a stock is not at the 52 week hi after a surge the gap is not as significant and I have been burned a couple of times. Our runs usually last 3 days, day 1 and 2 being the most important. Eric, good thread. Regards, Cian

To: - who wrote (302)	6/8/1999 4:03:00 PM
From: Ken Adams	Read Replies (1) \| Respond to of 18137

Steve, Your MULTIPLE TIMEFRAMES post really caught me! I've just started to see the value in this. I don't have a good methodology for the concept yet, but your note will help me toward that goal. A great post! Thanks! Ken

To: - who wrote (302)	6/8/1999 4:15:00 PM
From: Dave O.	Read Replies (1) \| Respond to of 18137

< Beside the moving averages, I don't believe in most indicators > Steve, You noted that when price moves above a certain MA (i.e. 10 period) that it tends to pullback. Rather than using MA's, as you do, I use Bollinger Bands to look for overbought (oversold) conditions. When I see a stock jump outside the upper band I look to sell, if long (or go short) and if it falls below the lower band I look to go long (or cover a short). Do you not think Bollingers would further validate your MA analysis? I tend to use stochastics and/or RSI to confirm what I might see with Bollingers. Dave

To: - who wrote (302)	6/8/1999 4:42:00 PM
From: TraderAlan	Respond to of 18137

PA, <I don't believe in most indicators. If you study the math, most of them are strictly derived from the price action, so why not just watch that?> This is a great truth of TA although some will violently disagree with you. The push toward the math side in recent years comes from those looking for acceptance from the financial mainstream, who still view TA as voodoo. Unfortunately, indicators often stimulate only the logical side of the brain. Price and price patterns act on the intuitive capacities, which are much more important for predicting the next move (the one you want to make money on). Indicators support the pattern, not the other way around. And the best way to test your "system" is to see how much money you've made or lost at the end of the year. Alan

To: - who wrote (302)	4/22/2000 4:50:00 PM
From: aldrums	Respond to of 18137

"Beside the moving averages, I don't believe in most indicators (believe me, I've tried them all). If you study the math, most of them are strictly derived from the price action, so why not just watch that? Sometimes they can just unwittingly provide you an excuse for not really understanding price action - a search for the magic elixir." Sorry to comment on such an old post, but I've been coming to exactly the same conclusions after studying multiple TA indicators for months. It's nice to hear it confirmed by someone as knowledgeable as you. Thanks...per your suggestion I will be watching stocks on multiple time frames with all the MAs and see what I can see.