SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?


To: Tom Halkar who wrote (9091)1/11/1999 5:49:00 PM
From: Richard Estes  Read Replies (1) | Respond to of 12039
 
I am not sure Brooke agrees with me. William O'Neil IBD publisher in canslim theory feels t5hat biggest moves are made in stocks with a float under 50M. I agree fully.

I also feel that real volume or demand should be measured as (21 dma of volume)/float. A measure over 10% is usually big movers, up or down. As a list to watch, keep it above 2%.

The best advice to anyone is subscribe to IBD, read O'neil's How to make money in the stock market. This is not for the short term trader but for long/intermediate investors.



To: Tom Halkar who wrote (9091)1/11/1999 5:50:00 PM
From: TechTrader42  Respond to of 12039
 
There isn't a percentage rule. I've found it's generally better to avoid low-cap stocks with huge floats. (One example might be NCTI, which has a float of more than 120 million.) You'll find that low-cap stocks with high floats are more volatile. That's good when they're breaking out and moving up -- not so good when they're on their way down, of course. With a smaller float, the volume doesn't have to be all that high to move a stock.

Brooke