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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (25706)	2/26/1999 11:12:00 AM
From: Jenna	Respond to of 120523

Watch List codes in "display" mode: questions from new subscribers about the parentheses and some of the watch list codes. I will print detailed 'glossary' of these terms and have done so. They will be put on the Well informed trader site. But for now know that the number in parenthese is the rank the stock holds in that particular indicator compared to the universe of stocks.. so if RSI for DELL has a (95) in parenthesis or a (11) The 95 would mean DELL ranks in the 95th percentile of RSI rank compared with the rest of the market.. (11) would mean the reverse..It would mean DELL is in the 11th percentile for relative strength, which is a negative indicator value. The other numbers are just abbreviations of the the indicator: I like to use MACD and/or MACD histogram, REL PERFORMANC 1-DY display only MOVING AVG 10-DY display only STOCH VAL 9/3 DY display only STOCK PRICE display only WILDER RSI 14-DY display only MOMTM HST 12/20/6 DY I use the Moving average as a measuring stick for short term trading. I like the 7 or 10 day moving average for the shortest term holds (1-3 days) and the 20-30 day moving average for longer term holds (1 week to 2 weeks). so the Moving average 10 day you see in display mode is just how far the stock is to its 10 day moving average. Any number over 100 means the stocks is above its 10 day mving average. The next one is the Stochastic value 9/3.. and again here is the stochastic value of the stock.. At a glance you can see if we are talking about an overbought or oversold stochastic.. if the number is below 25 you are in an oversold stochastic and if it si over 75 it is overbought. Of course this is a simplifications and overbought stochastics do not mean the stock is about to go down. the number 9/3 simples means we are calculated a stochastic of 9 days smoothed by a 3 day moving average. (the number in paretheses comparing the stochastics of this company compared with the rest of the market).. Momentum Histogram: Momentum measures the rate at which stock prices are rising or falling over a specified period. I like to use the momentum as a leading indicator. The first number is the stock's moving average, the second indicator is a smoothing effect and is the distance or time period (in our case it is 20 day) and the third number is the moving average of the momentum itself. The momentum values are calculated from the smoothed prices resulting from 1(stock price) and 2 (distance we are interested in calculating: 20 days). Once you get your momentum values from number 1 and 2 they are again smoothed by 3: which is the exponential moving average of the momentum instead of the stock itself. You don't have to calculate any of this yourself and a general understanding of what this is all about is quite enough. Since we calculated a momentum value (2) and now we are clculated the momentum moving average value (3).. here is where the histogram comes in. It is the difference between the momentum values (1+2) and the momentum moving average (3). a momentum breakout occurs when the momentum value and the momentum moving average are equal. You can see this and probably all know what it is.. It is when that little line crosses the signal line (zero line) going upwards. the Momentum histogram (also the MACD histogram is similarly calculated) is the height of the histogram.. You would like it to be high but not too high or you have a potentially overbought stock.. So when I have momentum histogram you can see the height at a glance. Even if you don't understand the height all you need to do is look at the number in parenthesis and that indicates the height of this particular stock's histogram compared with the rest of the market.. so if the numer in parentheses is (80) or above you have a strong stock there. If its much more you might have an overbought stock. Of course all this is much easier to explain with a corresponding chart and I will repeat this with the graphs to illustrate at a later time.. But what you need to know know is that I screen the stocks to get the best MACD, or Momentum Histograms and the number in parentheses will show you their ranks. Remember the depiction on your watch lists are in 'display' mode so you can see the status of the stock at a glance.. The actual scans that produced the pick are more complicated and involve different 'weights' to various indicators with 25 indicators and 5 volume indicators alone.