GM Break, I would think if a person used those 3 criteria, they would be right more than they would be wrong. Market sentiment is another piece of the pie. I think indicators on the daily charts are good tools to use for measuring a stock's strength.
When I pull up a chart, the first and only thing I look at is the price pattern and moving aves. If I like what I see? I'll look at the indicators. If not, I don't spend any more time on it.
If I find one I want to trade? I usually look at the latest pr's, everything happens for a reason. I'll take a bearish or bullish mentality. That means I use the short term charts for entry and depending on whether I'm bearish or bullish, play the dips or spikes. The long term charts show me support and resistance, the 10 min chart gets me in. Its not a perfect system either, I get burned too. By identifying the long term pattern, the trend will normally help me recover, if I'm patient enough to wait?
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