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To: ImInAndLong who wrote (15722)12/24/2000 1:26:09 AM
From: Jeff  Read Replies (1) | Respond to of 19297
 
hey bud...i'll use this as an example......

the stock is POZN......

askresearch.com

now on the one month.....look at the MACD......see that line running through the bars.....now notice right around dec 11th to the 18th.....the bars are getting smaller and the line is about to get a " gap" between it and the bars.....now right when the line is about even with the bar......put your finger on the bar.....and scroll up and look at the price......you will see its about to move up.....now you combine all the other indicators getting bullish......and you catch a stock just starting a run.....

think of it as a " trigger " signal......the minute you think that line will separate from the bars......and check the other TA to confirm.....you have a possible long play with a early entry......

also notice the 20-day and 50-day MA lines.....they are not on this chart because pozn is new.....but plug in EMLX or something on a 6-month.......notice that when the 20 line crosses that 50 line.....thats a trigger to go long......you don't see many of those in this bear market......roll

theres another good " trigger" you can use also......its called " parobolic sar" .......the chart above doesn't have that......so i use bigcharts......i don't know if this link gives you my settings.....or yours come up......but if parobolic doesn't show......you will have to change your setting.......

bigcharts.com

anyway.....the " parobolic sar" is those little dots running above or below the price trend......now in simple terms.....when the dots are above the price.......the price is trending down......and when the dots are below the price line......an uptrend should happen.......

so.....go long below......short above.......

and you can think of this as a " trigger" to take a possible position.......

example......say a stock you are watching is 3.00.....and its been downtrending so the " dots" are above......but now the " dots' are say at 3.25......so you are watching that stock during the day.....and you notice its at 3.30.....well you know the stock triggers a "sar" hit at 3.25......so you jump in because the trend may have just changed to an "uptrend"......because once the price hits the sar.....the trend can change.....and the next day especially will likely be up.......and it could be the start of a bigger run as long as the "dots" stay below the price......its not always reliable of course......but if you are watching when that trigger first hits......you are likely in the money the next day......

same for shorting a stock......sar is below in an uptrend.....price falls and hits the "dot"......next day or so the dot will be above the price signaling the possible beginning of a downtrend......so thats a short trigger......

all you gotta do is plug in a bunch of different stocks and see the patterns......you will get the idea of how it works real fast.....

BTW.....i'm watching POZN for a possible short......after that spike......i don't know where the top will be.....but i bet it forms a H&S pattern in a week or so......and that will be easier to short off of......roll!!!

of course you could do ok shorting it now.....but it will likely come down and bounce......and that bounce into a right shoulder would be the better longerterm short......i like shorting off double tops and H&S patterns for longer holds.....

regards