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Strategies & Market Trends : Bottom (and Top) Pickers, Unite! -- Ignore unavailable to you. Want to Upgrade?

To: ~digs who wrote (172)	1/23/2001 3:14:17 AM
From: Teresa Lo	Respond to of 214

"...My primary interest would be in determining how best to spot these dramatic trend reversals (witness BARZ)..." Well, first off, having worked at a brokerage firm that put together so many of these OTCBB deals, I would personally never trade these, no matter how much volume and how tempting. From my experience, I believe most of these are rig jobs from the get go, so for the trader, it's a game of musical chairs. In the old penny days in Canada, at least we did not have to contend with market makers like you have here in the U.S., and in particular, MM for the OTCBB stocks are the most wicked. That said, here's a chart of BARZ: ispeculator.com It never did get "overdone" on the ADX, but of course, I would never dream of using these kinds of methods to time a rig job. The key is in the volume, as Nicolas Gates (from SI here) will tell you. Switch to candlestick view, and on January 17, BARZ made a gap up open, and ended the day on a perfect doji at a nice round number like $60 on a spike of volume. When there is increased volume, and it can't go up, it speaks "volumes". The next day made another doji, so there is no excuse not to have a stop loss up there really tight, given the extent of the parabolic move: ispeculator.com Besides, given the relative illiquidity of these stocks, it is always prudent to shoot first and ask questions later. One can always buy it back, but unfortunately, one cannot readily ask for the profits at a later date, should the trader overstay his welcome. :o( Teresa