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Strategies & Market Trends : Charts for Quick CASH $$$ -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (4953)	11/8/1997 10:09:00 AM
From: Dave Shares	Read Replies (1) \| Respond to of 9262

(Hammers) Hi Ray, Thanks for the hammers. You're some guy for expanding your description. QDRX was a hammer the other day, now on Big Sto and DITR. Very speculative, but when I saw it rising on a crappy day, I took a plunge and will hope that it gets some more movement next week. I won't hold this one very long... Good luck to the Buckeyes today if they are playing. NEPF, what is the difference between a hammer and a paper umbrella, I did not see where there is one. May peace be with you all, David

To: Galirayo who wrote (4953)	11/8/1997 7:28:00 PM
From: HeyRainier	Read Replies (1) \| Respond to of 9262

[ DJIA ] Did anybody notice the double-top the DJIA just experienced? It appears that it tried to make a comeback through the 7700 level(also the neckline), but it didn't seem to be able to make it. It might be an interesting time to shift into more defensive positions. Regards Rainier

To: Galirayo who wrote (4953)	11/8/1997 7:33:00 PM
From: HeyRainier	Read Replies (1) \| Respond to of 9262

[ Favorite Stocks ] I know that there's a trading rule warning against falling in love with a stock, but I was curious to see what Ray and other regulars of the thread would pick if asked what their most favorite stock was. Well, let's make it two: one from a fundamental, longer term holding, and one from a short term, trading opportunity. Also, it would make this excercise a lot more productive if some reasons were provided. So let's start with the MC himself....Ray. Regards, Rainier

To: Galirayo who wrote (4953)	11/9/1997 1:26:00 PM
From: Stephen D. French	Respond to of 9262

I have found that watching minute by minute charts will indicate possible directions a stock will take based on certain critera. For example, a declining stock which is nearing its base or suppport level: When a stock is declining and it's reaching its base (for reasons you need to be confident about), the volume spikes(bars) will decline in somewhat of a linear pattern, (drawing a line from the top of the major spikes). During this decline period eventually the volatility will decline and the price range narrows, Many times the line drawn on top of the volume spikes point toward a period when the volume becomes quite low (in relative terms). This period is due to the uncertainty of which direction the stock will take. Some times this period is so short it can't be identified but most often it's present at least in a short time frame (> 3-4 minutes etc). If the low volume period is identified, usually a narrow price range is associated with it (logical). I call this the stable/low volume area. What happens from this point on is critical to day traders or people looking for a buy in point. <<Many traders don't want to buy into a stock until it trades in a stable pattern. It also refers to very short term trading like this or longer term positions.>> Using this as a premis, When the price is stable, and you are interested in buying the stock, you should prepare to be able to purchase shares ASAP if the signs are good. What's the most critical is to look at what happens to the stock when the first major volume spikes occur after the stable period. If the price upticks, it means a possible change in direction. You need to see at least 3-4 major volume spikes going in the opposite direction from the decline.(meaning a line drawn from the top of the volume spikes pushing the stock upwards). It is also critical that you don't see any weakness in the stock when the major volume spikes enter after the stable/low volume area. Once this trend is identified, it often builds on itself and other traders jump in and the trend is reveresed. I look at the increasing volume spikes as pressure pushing the stock up. If the outlook for the stock is truely negative, this advance will be short lived.Momentum from short sellers alone help propel it upwards and the advances from them are usually short lived. It's very important to identify stocks that are due to rebound and continue upwards for a point or two. Playing the short covering bounce may not give you enough time to react. Charts that are very bullish often continue to be after some profit taking. I've saved many examples of this technique as a learning/refresher example for myself. These procedures can be used in a longer term scenario. If anyone would like to discuss these ideas further, please ask.