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Strategies & Market Trends : Technical Analysis- Indicators & Systems -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (3040)	2/15/1998 7:33:00 PM
From: Doo	Read Replies (3) \| Respond to of 3325

Julius: With such and outpouring of responses to my question, I owe an explanation of what I'm up to, don't you think? I'll write in more detail when I have a minute, but here's a summary. I'm a CANSLIM'er, initiated in pure technical approaches to commodities trading. The CANSLIM criteria are basically pretty easy, but getting the "M" correct is key. Outside of the acronym criteria, entry point has always presented the biggest obstacle, for me and seemingly many others. ("M" is also a problem, but it's really pretty easy to get the hang of, I think). Someone recently pointed out slow stochastics and 3/7/10 EMA as a short term trader's timing device. I started applying it to my typical effort at catching stocks about to breakout, or, better yet, those that have collossal breakouts on weekly charts which have corrected on declining volume back down toward the basing pattern from which they broke. These two indicators give a nice confirmation to a volume dry out before a legitimate move continues. Also, I've started experimenting with in the money calls on CANSLIM stocks, three to six months out. Entry point is even more critical here, given the added commission burden, spread and liquidity problems presented by the option market. Slow stochastics and the 3/7/10 EMA crossover signals have helped enormously in my ongoing effort to refine entry into CANSLIM stocks. However, I thought it might be prudent to actually read something about the indicators rather than just using them. Right? Then again, reminds me of my first and only trip to the dog track. Although I understand the horse racing form well enough, dogs were not in my bag of tricks. Picking them purely based upon a number in the form which I believed to be a "speed rating" (the higher the better, of course), I hit three in a row. Then I asked a seasoned veteran what the form data was. To my surprise, what I thought was a "speed rating" was in fact the dog's WEIGHT!!! Well, I never cashed another ticket and went home broke. I appreciate your help, but I'm not yet sure I'll really study the indicators closely. May mess up a good thing..... FAT DOGS if you know what I mean! Thanks Jeffry