Flip This Chit!
This premium board is for "current" and "on watch" high liquidity day and position trading stock plays. The focus of this board will be to catch Plays at or around technical bottoms, and to bail at or around technical tops.
The key will be focusing on "active plays" with 10 day hourly charts, catching some of the "big mover", and "super hyped" plays on their technical pullbacks at support, and loading up for the technical rebounds.
Will also follow some with Daily charts looking for technical support levels.
Yes I use Bigcharts, and it's not as fancy as Stockcharts, but it's not as confusing either. I've found that MACD, Williams, Volume and Psar are usually enough to find appropriate entry and exit points. (Keep it simple sucka).
This market is getting tougher and tougher, and I'm finding that playing higher liquidity stocks at support levels to be the safest and most profitable way to play lately.
Please feel free to post suggestions and/or charts. If I feel they look particularly good, I'll add them to the ibox as charts to "watch".
MACD, the Moving Average Convergence/Divergence indicator
MACD, the Moving Average Convergence/Divergence indicator, developed and popularized by Gerald Appel, provides a uniquely sensitive measurement of the intensity of the trading public's sentiment and provides early clues to trend continuation or reversal. According to Appel, this indicator is particularly dependable in signaling entry points after a sharp decline. The MACD indicator may be applied to the stock market as a whole or to individual stocks or mutual funds.
The MACD indicator uses three exponential moving averages: a short or fast average, a long or slow average, and an exponential average of the difference between the short and long moving averages, which is used as a signal line. (See Moving Averages below for a discussion on simple and exponential moving averages.)
MACD reveals overbought and oversold conditions for securities and market indexes, and generates signals that predict trend reversals with significant accuracy.
MACD produces less frequent whipsaws, as compared with moving averages.
Telescan uses a type of shorthand to refer to MACD indicators. An "8-17-9 MACD", for example, uses a short (fast) moving average of eight days or weeks, a long (slow) moving average of 17 days or weeks, and an exponential moving average of nine days or weeks. (The use of days or weeks depends on the time span of the stock graph.)
Gerald Appel recommends an 8-17-9 MACD to generate buy signals and a 12-25-9 MACD to confirm a sell signal for a stock, which has had a strong bullish move.
Regardless of the accuracy of this indicator, one should not rely on a single indicator. Study as many technical and fundamental indicators as possible before arriving at your investment decisions.
Williams %R was developed by Larry Williams to indicate overbought and oversold levels. The indicator is very similar to Stochastic %K - except that Williams %R is plotted using negative values ranging from 0 to -100.
The number of periods used to calculate Williams %R can be varied according to the time frame that you are trading. A rule of thumb is that the indicator window should be half the length of the cycle (14 days is popular for the intermediate cycle).
Overbought and Oversold levels are normally set at -20 and -80.
DISCLAIMER & RISK DISCLOSURE: I am not a registered investment adviser or broker/dealer. I make no commitment that the purchase of securities of companies profiled or otherwise mentioned on this board are suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
Please feel free to sign up for special EMAIL ALERTS below.