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

To: Lynn Peters who wrote (4168)	10/22/1998 6:34:00 PM
From: TATRADER	Read Replies (1) \| Respond to of 59879

Lynn, whenever we make a big score, we analyze the stock to see what made it so strong...If anyone would like to add other observations, please feel free to do so...I am still learning... Tonight's Big Winner: KMAG 1. MACD Histogram was 3 days over the zero line... 2. Pring KST was 3 days over the zero line.. 3. Directional Indicator crossover some days back, with ADX increasing from late teens to early 20's....As some of you know, my favorite stocks are ones where ADX is moving up in early 20's... 4. Smoothed Rate of Change 3 days up in a row, after a reversal in direction... 5.Pattern recognition--A very nice rounded bottom... Pattern is 2 by 4...Neckline is at 4.00....This gives a target of 6.00 a share on this run...Technically, I should have stayed until tomorrow and followed closely with a trailing stop, trying to get as much as I could near 6.00 area...But some of you know I left early since the stock did not close near its high...(But on a fast mover, could this just be the Marketmaker trying to slow the ascent by shorting...) 6.Ascending Triangle....Pattern again 2 by 4 giving target of 6 To answer your question, in using technical analysis, you use an assortment of indicators, and allow them all to tell their part of the story...Then as a trader, you put the pieces together, and come up with the real story...On a breakout, stochastic gets oversold very quickly, and I would not rely on it at all...However, if it comes down and crosses the 80 line, you have a legitimate selling concern...I like RS and Stochastic both to line up together... Regards, Mark