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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Ken Wolff who wrote (176)	1/10/1998 6:04:00 PM
From: Ken Wolff	Read Replies (1) \| Respond to of 2120

DETERMINING SHORT-TERM BOTTOMS AND TOPS OF MOMENTUM STOCKS In order to learn how to find, recognize and play dumper stocks, we need to learn how to determine our entry points. I have taught the following technique to many of my students and have found it to be an accurate indicator of short-term bottoms on dumper stocks. The normal action I would expect from a dumper at the open is a SELL DOWN from the open price. I watch the RHYTHM of the Bid and Ask change. 1. The first indicator of the first bottom on my trade is a PAUSE in the rhythm of the downticking bid and ask. 2. I now focus on the trades as much as possible ignoring any out of bounds trades (trades that occur at a price below or above the bid and ask). (continue..) Ken mtrader.com