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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: GTC Trader who wrote (28335)	3/16/2002 8:15:16 AM
From: TATRADER	Read Replies (1) \| Respond to of 59879

hi ken, On analyzing a gold stock like DROOY, I use 8 basic indicators.. 1. Simple 20 day moving average 2. Pattern recognition 3. 30 period Bollinger 4. 30 period envelope channel 5. Fast stochastic 8 period 6. CCI 5 period... 7. Gann Retracement 8. Fibonacci Arcs.. It is always important to make sure that at least two indicators are in agreement before you make any trading decision..The more indicators that speak to you, the stronger the signal... On DROOY, if we first of all look at the pattern with the eye...I can see a rough pennant formation, with measurements of 1.60 by 3.00....Sliding a line down to form the pennant, we come up with 2.30...If the stock comes back to these levels and moves strongly up, a good sign..So far so good...The pattern projects then a 1.40 move from the base of the pennant..So I get a 3.72 longer term target... Now for retracements...Using Gann, and setting our indicator at 1.60 and top at 3.00, we get a possible pullback to the 2.05 area...IMHO, this would generate a buy signal, because the stock would be extremely oversold at those levels...Also if you look at the pattern within the pennant, you observe price movement between 2.80 and 2.30, which would project downside of 50 cents should 2.30 be broken on strong volume...So our second buy area would be in the 1.80-1.87 area...I do not see DROOY going any lower than than..In fact, I only see this possibility happening, should POG break down and do a retest to 280 area... Why did I sell recently? Well my CCI 5 period gave a reading of 112.271 on March 12th...Any time my short-term indicator is over +100, I am thinking to sell..It is better if the CCI is over 150+ to generate an overbought signal, but +100 gets me attention...The second indicator was the simple 20 day moving average...It is at 2.55...Since DROOY showed no power around the 20 day, I had my two indicators and decided to sell again... Right now DROOY is sitting on the base of the 30 period envelope...Envelope channel is 2.44-2.70....It is locked in that range...But it has shown no volume strength at the lower end of the channel, so it leads me to believe that it will test the base of the 30 period Bollinger band, which is 2.22 by 2.92...The medium point on the 30 period Bollinger is at 2.57..Again, DROOY did not hold that level either, so it is short-term bearish... Finally, i use the fast stochastic 8 period...If we get a reading of under 20 here or over 80, it is generating a signal...Granted on March 12th, it was not over 80, it was at 73, but I had my two indicators(CCI 5 period and simple 20 day) and went with them... A strong buy signal on gold stocks is when the CCI 5 period is at -150 or higher, and the Fast stochastic 8 period is near 0...If you look at the charts you will see what a good long-term predictor those signals are...Same goes on the sell side...If the CCI 5 period is over 150+ and fast stochastic 8 period is near 100, that is a sell signal... A normal sell signal would be CCI 5 period at 100 or higher, and fast stochastic 8 period above 80..A normal buy signal would be with fast stochastic 8 period below 20 and CCI 5 period below the -100 line... I hope I haven't confused you too much.....So you see when I look at a stock there is more to it, than just one or two indicators... Over the weekend I am long in PVAT and AIRN... Stocks to keep an eye on: 1.TMTA 2.AKAM 3.NUFO 4.MRVC 5.TSCC(has small volume, but a big buy day several days ago...