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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (90400)	3/28/2000 2:22:00 AM
From: Jenna	Read Replies (1) \| Respond to of 120523

Strategy of Range Contraction: Daily Chart of HGSI 209.238.58.242 Note that if HGSI does not break out tomorrow, you can always short the extra down day although I would rather wait a day or two and try a buy stop once again. Remember to watch the stock up to 3 days after this "reversal" signal. It worked twice in HGSI for strong gains both times. Note that in many cases you should see a downturn in volume as another confirmation that the selling might be dissipating. If ADX on daily chart is still above 25 or higher its an even stronger confirmation of major uptrend intact. This works for me best for stocks that are looking for a breakout of a downtrend that should be temporary and the major longer term uptrend should be intact. Of course it will work intraday also, but I no longer have the patience to track many stocks through the daytrading cycle. If its not a very wide range stock like MSTR, SCII or some of the biotechs like HYSQ HGSI, I'm just not that interested. If they are story stocks or chart patterns with a lot of head & shoulders and no real long term uptrend in place I lose interest. I'd rather look toward the swing trade or just one daytrade on a 10 and 15 minute chart, leave on the first downtrend signal and look for something else.