Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I know this is kind of long, but I'd love to hear responses on it.
Momo Riders, Just a thought.
Breaks of Previous High's vs. Moving Average Crossovers vs. Triangle Breakouts
Within the board I see these three channels of thought over and over again. They are all very common Technical Indicators. They're common because they're all useful. I'll present an argument in the defense of Breaks of Previous High's being the better buy indicator of the three, but would love to hear what people have to say.
It simply comes down to this for me, when we're talking about trading with the momentum, we have to look for places where the momentum is going to be greatest. In one camp, you have several guys who play moving average crossovers, and while they tell alot for momentum, you don't really ever see the pop with a Moving Average Crossover that you see with a Break of a Previous High for this reason. Traders that trade Moving Average Crossovers for the most part all use different moving average crossovers, or different time intervals, or a combination of the two. As the different crossing over happens, 5 above 10, then 8 above 13, then 13 above 50 and so on, people slowly filter into the stock, not really causing the supply and demand lever to tilt too much, and not really causing as fast an increase in the price as with our other type of play.
With triangle breakouts, it tends to be the same principle. Everyone can draw a triangle in a different place. Its so subjective. I can make a triangle out of any chart practically. We all can, and we all do. The money is scattered among thousands of stocks, and dozens of different triangles on each.
With Breaks of Previous Highs, the breakout point is OBJECTIVE. Everyone can agree on a horozontal line. And when everyone agrees to enter a stock at the same time, you see a dramatic shift in the balance of supply and demand. In my opinion this provides a faster, more profitable, and safer play for the trader.
Of course volume, the positioning of the indicators, and the state of the market as a whole plays into each decision made. However, this is an easy way to get out of the mess of entering and exiting trades in no man's where there is no attention being paid to the stocks.
Two additional things on Moving Averages.
While I seldom use them to make my picks for entering stocks, I find they're the best indicators for when to exit a stock. A trailing stop based on moving averages is always an excellent idea in my opinion. It helps to keep your money flowing into stocks that are moving, and not wasting time in stocks that have lost the momo. It also helps you not to get overly attached to any one stock, or so deep in a hole that you can't let go and take too big of a loss.
The other thing to stay away from with Moving averages is rationalizing entering a particular stock. If you're looking for a bullish crossover, chances are, you'll find it. If you manipulate the two averages around enough, you can find a bullish crossover with 50% of the stocks out there, but that doesn't mean they're going to take off now does it?
I know I'm not one of the veterans here, but I hope people actually read this, because I think I make some good points. Also, I'd love to hear some feedback on all this, and what people think. I think this is good stuff, but I'm posting it in part because I want to learn more, so I look forward to hearing your replies. Thanks.
The many different interpretations of where trendlines go has caused me to like certain setups better than others. Let me post a bit on kind of my creed of breakouts. Just something I've felt, and seems to be true.
That's true. Amoung my many trading faults is that I don't follow the sectors well enough. Something I'm sure I'll work on as things relax a bit, but that is a good call.
From what I know of the pros out here, most of the ues e signal, and most of them have extensive watchlist. I've compiled one, I'm wondering how many stocks on average you all watch?
I really don't think this stock is done running though. Just doesn't seem to be bearish enough of an indicator to reverse it.
EGSR: I guess, after re reading the definition that I'm wrong. The level of its bearishness isn't quite as high as if it were red. My bad.
By the way guys, maybe the most important criteria for a candle to be a hanging man is that it has to be on a down day. This is a green, not a red.
actually, its a hammer. If it were a down day, it would be a hanging man.
Well, I'd say, that in a downtrend, that hammer is given added significance, because its an indicator of the trend reversing, that's right. But its still just as bullish to see that candlestick. You have to take into account what that candlestick means. It means the stock started at a price below the high of the day. During the day, it retraced for a bit, and towards the end of the day gained some steam and finished at the high of the day.
The candlestick is kind of a self fulfilling prophecy. The stock is moving in the right direction at the end of the trading day, which means it more than likely is going to have momentum into monday, but then additionally, it will have much more attention on monday as people realise that it has a bullish formation. So, in essence, because it is moving, it will pick up more movement. This is the essence of momentum.
EGSR: If it comes out and breaks the two day high of .44 on solid buying, it should have some left in it.
My list of possible gap and run plays for monday morning.
NEOP 0.825 +23.1% 3150713 0.82 0.82 0.825 0.66
BVEW 4.71 +25.6% 1036258 0.01 9000.00 4.80 3.70
CGIH 2.7 +11.1% 569585 2.7 2.78 2.79 2.5
EACC 0.56 +14.3% 357478 0.53 0.56 0.57 0.49
COSI 4.53 +14.4% 273521 0.01 9000.00 4.69 3.83
CIRT 0.064 +30.6% 27321070 0.064 0.065 0.069 0.05
PRXX 0.165 +13.8% 1122170 0.155 0.17 0.19 0.14
OGHI 0.115 +155.6% 3212880 0.11 0.12 0.115 0.041
RMSG 1.4 +55.6% 266160 1.41 1.45 1.5 0.9
VTYC 0.5 +42.9% 226000 0.49 0.51 0.5 0.35
RWNT 0.021 +31.3% 9771988 0.02 0.0215 0.022 0.0155
MDDM 3.8 +26.7% 734034 3.92 2.98
Who knows a website where you can see the stocks with the highest percentage gain and loss from day to day? Thanks.
I'm setting up a daily gap and run watchlist. Anyone got some possible gappers for monday?
that's a great discription, really tellls the story
I know nothing about sectors, that sounds good man, look forward to it.
I'd like to think that, considering what this board has done for me, that I'd have the decency to post my true opinion on a stock wether I was in it or not. If I was in a pos, I'd hope I could jump on the grenade for all of us, and wait it out and take my medicine. I'd like everyone else to do the same. Not that I'm buyin whatever someone else says is cool, but some of the newbies, that will one day grow into successful traders will. I've been there, I know. You keep that newbie safe now, in six months, he'll bring the next pick of the year to the board, and we'll all be better off. Is it worth an extra fifty bucks out of your stock to ruin a new traders perspective and comceptions about this board and the market in general? Not to me. I hope we all take this attitude to heart.
BTW, I'm starting a new watchlist for daily gap and run potentials. Here's what i have thus far for monday. Anyone else have a strong gap and run possibility for monday?
neop bvew cgih eacc cosi cirt prxx
well, sometimes simplier is better. What i do is pretty simple, and its very consistent.
good deal
very nice. I've got it on watch for a break of that brim. Looks great man.
yeah, a couple, but its not as if you know
DCTH, I do hope everyone was in on it, but there were obviously several times people thought the momo was over on that one.
alright, that was just a big waste of time then. I thought we were dealing with something serious. OK, no big deal.
alright, though I have a pretty good sense of humor, I save my jokes for other times. I dunno. I just try to get my opinions on other posters stright. Like to make sure jokes are jokes.
just my opinion, if someone says, "its flying, weeeeee!" then its already too late for that ride. If you buy, you're buying a good traders shares. And its not his fault. I don't consider soemone simply saying, "abc is flying" to be a pump, and its not a stock tip either, if you're smart. Get a big watchlist, set alerts, be on top of them for yourselves.
so you agree now that it was probably scarcasm?
Sounds like a good deal. I just want to know how he thought you were trying to take advantage of him.
well, I agree charts can lie, but lets face it, you can't read a chart if you're looking at a 200 day ma of a stock that just started trading two weeks ago. And if someone doesn't know how to interpret volume, then we really should talk.
Sure charts lie, if you don't know what the hell you're looking for.
now that is pretty blatant scarcasm. I hope you didn't buy it, and I'd say that even with it only being written, its easy to see it was scarcastic
I always do my own dd, and agree that many kinds of formations can be drawn wrong, or spoken into life. I wrote an article on that subject, I'll repost it.
Momo Riders, Just a thought.
(I posted this a while ago, but wanted to do so during high board volume)
Breaks of Previous High's vs. Moving Average Crossovers
Within the board I see these two channels of thought over and over again. They are both very common Technical Indicators. They're common because they're both useful. I'll present an argument in the defense of Breaks of Previous High's being the better buy indicator, but would love to hear what people have to say.
It simply comes down to this for me, when we're talking about trading with the momentum, we have to look for places where the momentum is going to be greatest. In one camp, you have several guys who play moving average crossovers, and while they tell alot for momentum, you don't really ever see the pop with a Moving Average Crossover that you see with a Break of a Previous High for this reason. Traders that trade Moving Average Crossovers for the most part all use different moving average crossovers, or different time intervals, or a combination of the two. As the different crossing over happens, 5 above 10, then 8 above 13, then 13 above 50 and so on, people slowly filter into the stock, not really causing the supply and demand lever to tilt too much, and not really causing as fast an increase in the price as with our other type of play.
With Breaks of Previous Highs, the breakout point is OBJECTIVE. Everyone can agree on a horozontal line. And when everyone agrees to enter a stock at the same time, you see a dramatic shift in the balance of supply and demand. In my opinion this provides a faster, more profitable, and safer play for the trader.
Of course volume, the positioning of the indicators, and the state of the market as a whole plays into each decision made. However, this is an easy way to get out of the mess of entering and exiting trades in no man's where there is no attention being paid to the stocks.
Two additional things on Moving Averages.
While I seldom use them to make my picks for entering stocks, I find they're the best indicators for when to exit a stock. A trailing stop based on moving averages is always an excellent idea in my opinion. It helps to keep your money flowing into stocks that are moving, and not wasting time in stocks that have lost the momo. It also helps you not to get overly attached to any one stock, or so deep in a hole that you can't let go and take too big of a loss.
The other thing to stay away from with Moving averages is rationalizing entering a particular stock. If you're looking for a bullish crossover, chances are, you'll find it. If you manipulate the two averages around enough, you can find a bullish crossover with 50% of the stocks out there, but that doesn't mean they're going to take off now does it?
I know I'm not one of the veterans here, but I hope people actually read this, because I think I make some good points. Also, I'd love to hear some feedback on all this, and what people think. I think this is good stuff, but I'm posting it in part because I want to learn more, so I look forward to hearing your replies. Thanks.
That may be true. I'm blessed because I pay absolutely no attention to the ultra-subjective world of fundamentals
CHARTS DON'T LIE They just don't.
buying it before its break is just stupid, and if the chart is my kind of pretty, its not the salespersons fault, at that point, its mostly all about timing. If you've got a stock thats setting up a nice tech formation, and you know where to get in, you're way ahead of the game.
ok, I'm feeling a bit better about the whole situation. You seem to be a guy who plays things based on fundamentals, pr's and such. We're two different breeds, the BOT board is a Technical board, and it will be good to know you aren't doing anything unethical. Additionally, the BOT board like I said is based on technicals. That's all I really need to say about that, but that is the requirements on this board. I respect guys who can make fundamental plays, not my gig, but I respect it.
And yes, you'd be right, it'd be your fault, but i have a hard time calling it victimless. Pumping is decietful, and the victim, is also the one at fault because he chooses to take the easy way out, or he's just too eager to get into the market without knowing anything. But I won't blame the stupid victim in it, I'd rather just not see anyone who chooses to post like that taking up space out here
Most of the time I hear scarcasm its because I can acutally hear the person talk. There was nothing scarcastic about what I had to say. If you were being scarcastic, then I apologize. Is that what you're saying? You're telling us that's not your style? If that's the case, what is your take on people who do pump up a stock to stick it with a newbie?
that is absoluetly awesome.
I don't know if its my inflection, or what, but at this stage of the game, I'm nowhere near a newbie. I keep getting people trying to father me on here that I haven't asked to. The people who's intellegence I desire I ask. For some reason I seem to attract surrogate stock dads. Geez, its kind of frustrating. I guess I'm too humble, I have people thinking I don't get it.
No offense, but I may have given you too much credit calling you a car salesman. If this is your type of thing, and you're going to be that blunt about it, you really have no business here.
"But I wouldn't call posters like myself and all of the others who try to sell you our garbage cars salemen.....we're more like informercial hosts, lol - complete with letters mailed in telling you the heart-felt stories of the few who were on the right side of the pump. ;)"
Well, there will be a price one of these days where its not, but yeah, shows no signs of stopping the skid.
was reading the posts on xyny last month, its funny how before I knew how to read charts, I thought that posts like these were the way to the promised land. I lost alot of money due to it. That's why its so terrible what goes on out there with these used car salesmen telling all the newbies about the promised land of the great "abc" stock of the week.