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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: rrufff who wrote (4145)	1/22/2005 2:58:47 PM
From: Vendit™	Respond to of 8752

rrufff, The main indicator that I use is the stochastic oscillator for timing entry and exits. Once the trader understands how to use this indicator, he or she can effectively use it to trade a stock in any time frame. One important reality about stock timing and technical analysis is this; not all stocks are good candidates to be traded using the methods that are talked about on this thread. SEHO happened to be in such a technical state on Thursday and Friday that I was able to find a good set of intra-day chart settings that would allow you to time some trades, i.e. day-trade the stock. The rush of volume at open on Thursday and intra-day volatility on that day showed me that there was a layer of main lower support that formed at the .30 and .32 level. Below .30 there was no support meaning there was no real trading volume present (the gap) so one would not want to own the stock under .30 is my logic. I tailored the intraday chart settings to best fit SEHO: 2 minute time frames using stochastic set on 15-5-5. Buy when the stochastic lines cross near or below the 20 on the stochastic scale. Sell when the stochastic lines cross near or above the 80 in the stochastic scale. I placed MACD in the chart as a confirming indicator but will not attempt to explain it at this time. It is a bit more complex to understand and I don’t want to confuse the simplicity of what I have stated above. 139.142.147.22 Terry and I posted and conversed about SEHO this morning using a 5-minute chart. The reason that we used the 5 minute time frame was because the 2 minute charts only show about 4 hours of data, which is all that you need to see when day-trading. The 5-minutes charts allowed us to see and discuss the rise and fall in trading volume over most of Thursday and all of Friday’s trading session so you can see the rising and falling volume. 139.142.147.22 Summary: SEHO needs to be traded with 2-minute charts but only when heavy volume is present. SEHO will be difficult to day-trade under .30 this cycle. You must tailor settings that best suit a stock to find what best works for that stock. Not all stocks can be traded using charting techniques. It takes two key ingredients to make a good stock candidate for trading by way of charts; volume and volatility. Stochastic is the best oscillator to use to time entry and exits. A trader can use this technique to trade stocks in any time frame. ==== Generally speaking I like to locate a list of stocks that have technical setups that are on the verge of explosive moves just like SEHO. I would consider an explosive move 8% to 15% but would be happy to take a 90% move like SEHO. <g> I use a daily scan to find a list of these stocks and when the list looks good I will post it on this thread during after hours and then link the list in this thread’s header for easy reference: Subject 51210 They are labeled Free Hand Scans From the list I will watch trading in pre market and find 2 or three runners and may take a swing trading position in one or more of these stocks meaning I will buy long and hold for a few days until they top, then I sell. The settings used in my charts are the typical daily setup that I find the best suited for most stocks. Re: Also, the website that you run - somehow I misplaced the link. The link to my website is also found in this thread’s header. It has a large free area and I placed it there because I use many of the tools from the free area to run scans and create charts that I post on this thread. There is also a large learning area there about technical analysis, i.e. tutorials that I have written about support and resistance, Japanese candlesticks, Bollinger bands etc. Sorry for the "too long reply" but I wanted to fully answer your question. If I confused you or missed something please feel free to ask. Reid