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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (402)	5/19/1998 7:14:00 AM
From: TATRADER	Respond to of 59879

Excellent pick SERGI...It is on my top 10 for today, and now since you have recommended it, I won't have a chance...Regards, Mark P.S. I already gave Happy Bids a tip on this one on a former post....

To: Sergio H who wrote (402)	5/20/1998 8:20:00 AM
From: TATRADER	Read Replies (3) \| Respond to of 59879

Time for TATRADER Educational Principles... A bit long, but ones I follow in trading..... 1. When a stock goes up on tremendous volume, and then corrects downward on light volume, a spring effect usually takes place and the stock moves again upward.. 2. Keep your eyes on the 3rd Friday of each month. Learn the option strike prices for your stocks. The option writers love to have the price around the strike price on the 3rd Friday if possible. 3. MM's like to paint the tape with 100-200 share purchases to flavor the stock in the direction they would like to see the stock go... 4. When a stock goes up on a parabolic blowoff-tremendous volume, it is usually time to take some profits off the table VOLUME PRICE REVERSAL a) Volume is strong from the get go b) The stock moves quickly to the upside or downside---upper or lower trading range. c) All of a sudden the stock turns around and heads in the opposite direction and finishes either where it started or higher or lower from where it opened. d) Does NOT NECESSARILY signal a trend change e) What a one day volume price reversal says is this, "WATCH!" Keep your eyes on this stock. A trend is soon to be established. Might take some time before you clearly see the direction this stock is headed... 5. When there is tremendous volume and the stock does not move, it smacks of distribution and a sell-off to the downside follows shortly thereafter. 6. A stock whose 20 day moving average moves above its 200 day moving average is a bullish sign. 8. When a stock hits two bottoms, it usually indicates that the stock will now head upward. We call this a double bottom. These bottoms are separated by at least 3 months of time. 8. A good time to buy stocks is when a stock, after basing for at least 3 months, takes out its 52 week high on bigtime volume..An indication that new money is now entering the stock. 9.When a stock is on the move, and you want to figure out a new high price objective: Construct the flagpole with the price before the initial breakout..Subtract the recent high price from the initial breakout price..Add this amount to the price of the stock where it presently is consolidating to obtain the new price objective. We call this the flagpole formation. 10.Head and Shoulders Reversal----STOCK HEADED DOWN---The stock goes up on good volume, then it retreats on less volume.(1st Shoulder) The stock then goes up again on good volume, above the last price rise, then it retreats on lesser volume.(the head) Finally it goes up on small volume, and then breaks down to the downside,(2nd shoulder) going below the neckline---a straight line drawn through the bottom of the head and the two shoulders...If you want to determine the downside potential once the neckline is violated, measure the distance from the top of the head to the neckline, and you will have a target for downside.. 11.Envelope Channel: A price above the upper trading band is possibly a selling signal. A price below the lower trading band is perhaps a buying opportunity. 12.Bollinger Bands: Sharp moves in price tend to occur after the bands tighten, and the closer to the average the better. Since reduced volatility, denotes a period of consolidation, the first increase in volatility after a consolidation tends to mark the start of the next move. Moving outside the bands signals a continuation of the move until the prices drop beloe or inside of the bands. Moves starting at one band tend to go to the opposite Band. 13. Moving Averages: Help to determine resistance points on the upside and support on the downside. 14.MACD Indicator: it is considered bullish when the Price Phase line is rising and is above the Signal line. Conversely, it is bearish when the Price Phase Line is falling and is below the Signal Line. Buy and sell signals are generated by the crossing of the two lines. Buy: when Price line cross from below to above the Signal Line. Sell: when the Price Phase line crosses from above to below the Signal Line. 15.When a stock hits lower highs and lower lows it is a bearish sign. When a stock hits higher intraday highs and has higher lows it is a bullish sign. More to come in the next few days...I have around 50 of these...... Regards, Mark