Monday, January 04, 2016 4:52:21 PM
Information culled from http://www.myrollingstocks.com/us-rolling-stocks/
US Rolling Stocks
"Stocks which go up and down between two set predictable price points. Below is an example ...
List of US Rolling Stocks
Stock Symbol Company Name Support Resistance Options
PRAA Portfolio Recovery Associates $42 $50 Yes
POZN Pozen $5.50 $7.30 Yes
STST Argon St. Inc $17.75 $21.50 Yes
Charts of Rolling Stocks – the charts show the stocks rolling over a 6 month time period
Three green arrows line up vertically – signals a buying opportunity
Support – This signals the buying price of the stock
Resistance – This is an indication of the selling price, if you already own the stock
Options – This tells us if the stocks has Options available
Red Line – Simple 30 day moving average
Blue Histogram - The MACD (Moving Average Convergence Divergence) is used to determine the strength of a trend
Green Line – Stochastics is technical momentum indicator that compares a security's closing price to its price range over a given time period.
How to use the chart (Buying a Stock)– Looking at the table above will display the support and resistance levels of the stock – one way to determine where to buy the stock is by buying at or close to the support (in this case $42). Because the support and resistance levels are not always clear cut and defined, another way to determine where to buy the stock (entry point) is by looking at the green arrows that form when the three indicators signal a buying opportunity (the three green arrows will line up vertically).
Three red arrows line up vertically – signals a selling opportunity
How to use the chart (Selling a Stock)– Looking at the table above will display the support and resistance levels of the stock – one way to determine where to sell the stock is by selling at or close to the resistance (in this case $42). Because the support and resistance levels are not always clear cut and defined, another way to determine where to sell the stock (exit point) is by looking at the red arrows that form when the three indicators signal a selling opportunity (the three red arrows will line up vertically).
The indicators are the MACD and the Stochastics. The MACD (Moving Average Convergence Divergence) was developed by Gerald Appel, and is used to determine the strength of a trend.
The MACD is constructed with two simple moving averages and one exponential moving average. The two moving averages, usually an 8-day and a 17-day, are compared to find the difference between the two. A smoothing factor is applied to the difference between the two moving averages by taking a 9-day moving average of the difference. The difference and the smoothed difference are then plotted as lines or a histogram (or both).
The Stochastics is an indicator that measures the relationship between a stock’s closing price and its price range over a predetermined period of time.
Another example – Can you pick the Support and Resistance levels on this chart? (without looking at the table above)
If you picked $17.75 as the support and $21.50 as the resistance, you would be in the right ballpark. Picking the support and resistance levels is not an exact science – so we use the indicators (green arrows and red arrows) to help us make that buying or selling decision."
US Rolling Stocks
"Stocks which go up and down between two set predictable price points. Below is an example ...
List of US Rolling Stocks
Stock Symbol Company Name Support Resistance Options
PRAA Portfolio Recovery Associates $42 $50 Yes
POZN Pozen $5.50 $7.30 Yes
STST Argon St. Inc $17.75 $21.50 Yes
Charts of Rolling Stocks – the charts show the stocks rolling over a 6 month time period
Three green arrows line up vertically – signals a buying opportunity
Support – This signals the buying price of the stock
Resistance – This is an indication of the selling price, if you already own the stock
Options – This tells us if the stocks has Options available
Red Line – Simple 30 day moving average
Blue Histogram - The MACD (Moving Average Convergence Divergence) is used to determine the strength of a trend
Green Line – Stochastics is technical momentum indicator that compares a security's closing price to its price range over a given time period.
How to use the chart (Buying a Stock)– Looking at the table above will display the support and resistance levels of the stock – one way to determine where to buy the stock is by buying at or close to the support (in this case $42). Because the support and resistance levels are not always clear cut and defined, another way to determine where to buy the stock (entry point) is by looking at the green arrows that form when the three indicators signal a buying opportunity (the three green arrows will line up vertically).
Three red arrows line up vertically – signals a selling opportunity
How to use the chart (Selling a Stock)– Looking at the table above will display the support and resistance levels of the stock – one way to determine where to sell the stock is by selling at or close to the resistance (in this case $42). Because the support and resistance levels are not always clear cut and defined, another way to determine where to sell the stock (exit point) is by looking at the red arrows that form when the three indicators signal a selling opportunity (the three red arrows will line up vertically).
The indicators are the MACD and the Stochastics. The MACD (Moving Average Convergence Divergence) was developed by Gerald Appel, and is used to determine the strength of a trend.
The MACD is constructed with two simple moving averages and one exponential moving average. The two moving averages, usually an 8-day and a 17-day, are compared to find the difference between the two. A smoothing factor is applied to the difference between the two moving averages by taking a 9-day moving average of the difference. The difference and the smoothed difference are then plotted as lines or a histogram (or both).
The Stochastics is an indicator that measures the relationship between a stock’s closing price and its price range over a predetermined period of time.
Another example – Can you pick the Support and Resistance levels on this chart? (without looking at the table above)
If you picked $17.75 as the support and $21.50 as the resistance, you would be in the right ballpark. Picking the support and resistance levels is not an exact science – so we use the indicators (green arrows and red arrows) to help us make that buying or selling decision."
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