The Stock Pond

[Geaux Fish]

Questions T/A from a post I will share

Geaux,

I pasted your reply below and have comments/questions in bold italics:


Target say 7.00 to 16.00 stocks.

Does this range provide certain benefits? Are they easier to trend? I can see where I shouldn't go too high, but what about lower than 7?

Note that stocks trade in a graph $3 to $7 may be a .15 to .30 cent a daily swing blocks on the graph. Look at a $9 to $16 you will see .40 to .80 as much as a 1.50 on some. They act more normal and trade to the chart much better. Sell at resistance every time unless it will sure break it.

Not sure what trading platform you using or if you have stock charts.
I use TD Ameritrade, but their Command Center doesn't offer all the indicators. They do not have ADX or Williams on this platform. However, the standard website charting has the following:

upper indicators: SMA, EMA, BBs, SAR, and a few others
lower indicators: accum/dist, advance/decline, MACD, Money Flow, RSI, OBV, Williams R, Stochastics, and a few other indicators

I had use Scottrade and I like it but etrade is the bomb to me. There etrade Pro platform is bad to the bone. There have scanner tools that will bring the moving targets to you. Click on them understand the T/A and click and trade. Same goes for down moving plays. I would never be without the ADX. What you have there would work with the SMA,5,10 20, 50,100 & 200, The ACCU, Williams 9, MACD setting 5,15,10, FAST STO, BBs, Sar2 and RSI 5 for faster short term swing and a RSI 14 for long term. If you had ADX set all at 5

6 mo daily for long term bottom indicator.

When you say bottom, are you referring to the stock finding the bottom?

Yes on the 6 mo your Williams will be in the mud and you want to wait till you see a either bounce off hard or a upward trend with the williams coming up and the ADX 5 setting up for a cross. Some times it will pull back at this point of crossing.


60 min 10 day intraday chart for a 2 to 3 day swing and 15 min 3 day chart for daily swing and to back up the 60 min.

Notice my charts

RSI 14 box with the ma-20 overlay. Note when the RSI crosses the ma-20 overlay you get a move. Reinforce this with the PPO same you see the PPO green fast line cross the ma-20 overlay you get the move.

When you say 20-ma overlay, do you mean overlay on the RSI reading, or on the stock price? I don't have PPO either...

The blue lines on my charts or the overlay. Fast track line or green and slow red. RSI and CMFs may be purple. This ma-20 overlay can be only set up on my stock chart account


ADX 5 fast line green crossing the red line you get a move. When the green fast line crosses the overlay or the adx line you get a very strong move.
Don't have ADX either...is there another similar indicator to ADX

Answer No

RSI above 50 is bullish with all the above crossed already.

Now use these same set up on a 60 min chart when the Williams is on its bottom side of the box along also on the 15 min after a 2 to 3 day pull back and the ADX red is above 40 it comes a buy for a swing , ADX red hits 60 you get a hard bounce at the buy. Stock Trading in a down trend most of the time what for this set up . In a uptrend dose the same on a down day with the stock in a channel moving sideways or up. Your buy point is the Williams on bottom adx on 15 min ready to cross the redline it will move. The 60 and 15 min will help you make a better entry.

okay, this paragraph was quite a bit to absorb, I will have to keep reading this one..

I use ETRADE and use these set up on my chart and swing trade 9 to 25 dollar stocks some lower at times if the right set up is showing.

Never trade a company that is having money problems not worth the risk. If you have etrade and use the William 9, adx 5 across all and a RSI 5 and watch the 60 min and the 15 min electronic live action chart on etrade pro you will see when the Williams is down and the 15 min adx sets for a cross buy most of the time. Remember down trend 2 to 3 days sideways and up trends 1 to two days pending how bullish. Some time down trends go much longer and have a very short swing and you will notice this because the sell points will peak out very quick on the Williams , ADX and RSI 5. The 60 min will give a more safer entry on the adx cross along with the Williams with a moving RSI in a upward direction.Do you know if I can accomplish the same chart set ups with Stock Charts?


Yes very simple and I can post the set up to input the settings.

It takes many hours of watching these set ups and you will see what I am saying and learn from it. I can post a 60 and 15 min chart to show you and edit what I am saying.

Yes, I would appreciate a few examples to visualize the above scenarios.

Will do when I have the time!

It is a lot to take in but it is simple and easy to trade bigger dollar stocks. The cheaper they or the more risk they are I have learn over the years. How many stocks do you suggest being in at the same time?
3 to 5, Starting out no more than 3 or 2 and as time goes and develop a trading list of stocks that work. Note when they swing and you work with them and you will learn there patterns and cash in on this by knowing the move pattern better over time.

Example look ZLC all because some stock analysis makes a sell call on it and the stock tanks. Well the technical’s was saying buy and MM killed it. Whenever a stock opens down like this and does not trade straight up you bail and move on.

Sit down and do the math on .40 to .80 cent moves on 9 to 16 dollar stocks pending the number of shares for a swing trade and take the cash and see how fast it adds up. I assure you will never go back to low dollar stocks unless you day trade them only unless the RSI hits above 50 and continue to move up, Because of the contently of winning trades you will notice. The ma-20 overlay is the bomb along with the adx crossing.

GLTY and watch for a few example on intraday postings.

Read the ibox and TECH info and learn from someone who has travel the road already and save yourself the heart ache. I started reading your IBOX and T/A suggestions last week, have a long way to go...