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

To: Eliot A who wrote (3061)	2/19/1998 8:36:00 AM
From: Doo	Respond to of 3325

EliotA: I agree that the "M" is a technical part but not the only one. On that note, here's a site where some folks have computerized a version of O'Neill's "M" and through proprietary modifications are managing accounts in stock index futures: accessone.com Their "Stock Farmer" section provides nice commentary concerning the "M" ala WON, although it is influenced by the stock index trading system in some ways. Outside of the "M", O'Neill encourages utilization of 50 day moving averages and makes repeated, but unspecified, references in his writings to the use of technical resistance and support levels. I also think that recognition of "basing patterns" takes a fair bit of technical analysis, but less strictly so. I agree that TA is a critical factor in all stock plays. I use the default settings on the slow stochastics at bigcharts, whatever they are. Here are a few stocks which I have been in an out of with in the money calls based upon slow stochs: WFMI and NBTY. They are, so far, pretty true to the slow stochs, on the upside and down side (and the 3/7/10 EMA crossover provides additional confirmation of the new move in either direction). They fall into a category where I simply use them for safest entry point. They are running and show no signs of breaching well established support. I'll trade them over and over until they fail or the "M" turns sour. The other category I look at involve the huge breakouts from "basing patterns". I almost always miss the first big move, but look for oversold conditions accompanied by declining volume for an entry point. When things look like they are about to crossover to the upside, and volume is mysteriously quiet after the open, I'm in. A possible example on the horizon might be WSTF. Finally, I've been catching a few in the "handle", such as TWLB at 23 3/4 just after that flush into the 22's. Jeffry