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trding

01/04/21 8:47 PM

#62 RE: JPGetty #61

It is something I picked up on ihub.
The 8x34 chart, though not perfect, has a good prediction of when these big runs will occur. For the iswh chart, see how from July to December the 8 day acted as resistance to the share price and the 8 day average was below the 34 day. I look for when they start pinching together after a very long decline like that, 8 day closing in on 34 day, because that can indicate a big run is coming. Sometimes you get a false positive (it crosses but no run), but all big runs will have the 8 day above the 34 day. The longer it has been before the cross the better chance it will be a big move.
Then after the cross, the share price starts riding above the 8 day, with it acting as support. The share price might move way above the 8 day, now with iswh the sp is 33c and the 8 day 13c, but that very rarely lasts. It might pull back as the 8 day rises to meet, giving opportunities to add as the bullish trend continues, but the sp moving up and down volatility. The 8 day price can be a way to see if there is an opportunity to add. For iwsh sp at 33c and the 8 day at 13c, you might be able to add within the next week at say 20c, with the bullish trend continuing. That is what I will be looking for, 33c a little too high for me, that high above the 8 day. Of course it might continue a little higher and I miss it altogether, but that is the safer play.

I use the 8x34 cross help decide when to buy and when to sell on these big run plays, but this year hopefully I get to test it out more than every before. I'm usually only in two or three dollar runs a year, so not a lot of practice on the sell side with these type runs. I have used it many other less volatile stocks though with good success; hoping that changes this year.