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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Tomato who wrote (13532)	8/26/2000 9:21:17 AM
From: Vendit™	Read Replies (1) \| Respond to of 19374

The first thing that I look for in a stock is volatility. I like a nice saw toothed chart pattern. Next I like the daily volume to be at least 1,000,000 shares or more. I would refer to the above as a high volume roller. I then look at support and resistance levels. These are normally good buy and sell targets. I also back test most stocks to see if they are consistent in reacting to the indicators I look at. i.e. I like reliability. Next I want to locate an entry point where I think a stock has bottomed and will likely have several or more up days in a row on higher volume which causes momentum. I look at William’s R and money flow for signs a bottom may be near as they are the first indicators to turn up after a bottom has formed. If I see this I then look at stochastic set both on 15-5-5 as well as 5-3-3. These two lines should be under 20 on the scale thus showing that the stock is very over-sold and will likely reverse. The second thing I look at is MACD 8-17-9. The further it has driven it's red bars below the "0" neutral line the more momentum a stock will have as it reverses and heads back up. MACD signals a day or two after stochastic does. Entry into a stock is ideal if made somewhere between a stochastic 15-5-5 buy signal has been made but not yet seeing the MACD buy signal made but headed in a positive direction. The final thing is a look at the candle sticks. This is an entire different thinking process or way of logical thinking but candles tell much more than meets the untrained eye. Tall candles show huge volume which normally means huge buying or huge selling. Black candles means sellers. White hollow candles mean buyers. Each mean the momentum is headed either up (white) or down (black). Once entry has been made a stop is a good idea just at or below short term support. As a stock moves up each day so should the stop be moved up. Your sell target is usually the upper short term trend line so I normally sell there and move on to another stock. Learning each indicator very well and noticing how each has a slightly different timing in showing tops and bottoms is important. The same set up above works with daily charts for position trades as well as looking at smaller time frames like 15 minute or 1 minute for day trading. An example of one to watch:(volume not meeting the 1mm mark but still a good position trading stock) askresearch.com