Tarheel-Method:
open four other browsers and pull up stockcharts and set up four charts with my indicators of choice.
On the first chart I use these indicators: RSI 14, Simple moving average 50, Simple moving average 200, Bollinger bands set at(20,2), MACD (12,26,9),and Williams 14. Just a basic standard chart.
On the Second Chart I use these indicators: Accumulation/Distribution, SMA 20,100, Bollinger set the same as above (20,2), CMF 10, Slo Stoch set at (5,3).
On the Third Chart I use these indicators: TRIX (5,5), SMA (10,150), Bollinger set the same (20,2), MFI 10, DMI ADX 14.
On the Fourth Chart (Which is a template that Ken Goodrich graciously gave to me) I use these indicators: MACD (5,15,10), Aroon 8, Full Stochs (5,3), MA 5 with a 20,2 Bollinger, Volume with an EMA 5, EMA 20 overlay, Williams 9, ADX 5, CMF 15, RSI 5, and RSI 2. This is the chart I post plays on the board with.
The reason I pull so many different charts in different browsers is simply because I am not a member at stockcharts and therefore can only use the basic chart which only allow 3 indicators. This is also the reason why you never see an annotated chart by me. Like I eluded to earlier, Ken Goodrich created the template for the chart that you see me post on the board. I added the RSI 5 and 2 to it. This is also the reason I only posts a 3 month chart. I tried to edit the code he gave me , but only had success adding the RSI 5,2.
Next I start looking through the free scans at stockcharts. My first focus is on bottoms. So this leads me to scans like: 52 Week lows, Stong Volume Decliners, Oversold with an Improving RSI. I also look through Strong Volume Gainers, Bullish 50/200 day crossovers, Bullish MACD crossovers, Stocks in new uptrend (Aroon), Stocks in new uptrend (ADX), Bullish Engulfing candle, Dragonfly Doji, and Hammer.
My requirement is, it must have at least 200,000 volume. So basically any stock I run across in these scans that has 200,000 volume, I click on the chart beside the symbol and take a peek. 2 Charts come up when you click on it. When the charts pop up it has these indicators (First Chart)which is a 6 Month Daily: PPO (12,26,9), MA(50,200), Volume with EMA 60 overlay, CMF (20).
(Second Chart) which is a 3yr. Weekly has these settings: PPO (6,12,9), MA 40, Volume with EMA 60 overlay, $SPX with EMA (20)
From there its pretty simple, If I'm liking the PPO on both Charts and the candles along with the $SPX EMA 20 Combination, I go to the other browsers that I already have set up with MY indicators of choice and just plug in the symbol. If I don't like what I see on my first chart then I scrap it and go to the next stock. I must feel good with what I see on all Four of MY charts before I will consider starting a position in the stock. Many times I will like what I see on 3 of the four or two of the four charts and just decide to put it on my watch list and wait to see if it develops.
Like I said earlier, it gets a bit time consuming going through all the scans, I probably spend anywhere from 1 to 2 hours a night searching for plays, depending on the market conditions of course. Its not the fastest way to find plays but I'm pretty comfortable with it. Hope this helps and is not too confusing. Let me know if you have any other questions.
Buying Lesson
Buy now or wait till it's more expensive?
I know your thinking "This guys an idiot, thats a no brainer"
Well, I once thought that way myself, but have come to realize that buying cheap right now is not necessarily the smart thing to do in all cases.
Suppose your looking at a stock that is trading at .11. Your liking this stock and are thinking it may go higher. The boards are buzzing with hype, rumor is news is coming, email campaign is coming, every Tom, Dick and Harry is pumping this thing "To the Moon". You think I need to act NOW. What to do?
Turn to T/A. Pull a chart and find support and resistance. Check the indicators. Are they showing over bought?
Suppose in this case that you pull a chart and find that the 200 MA is sitting at .12, a previous high of .123 is next resistance, then .013 is next previous high, with the 50 MA sitting at .13 as well. You look for support and find that the first area is all the way down at .04 which the stock has held at the last 4 times it has tested it.
Now would buying at .11 in a heated rush be the best thing to do in this case. IMO the answer is no. It would be better to wait till the stock broke resistance at .13 (On the BID Side) before entering.
If you decide to enter at .11 during the pump, it is likely or at least very possible that people are beginning to dump because resistance is showing to be to strong for a break through. Remember if the stock sells off, its not gonna have any support until it reaches the .04 area.
So always know support and resistance before entering a stock, and buy where your chances of a successful trade are the greatest. Don't become a bag holder. Been there and done that. Not a fun place to be. Hope this helps someone. GLTA
Tarheelblue
AI
