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Susie924

10/12/05 7:52 PM

#6394 RE: BoomTime #6390

Mr Analyzer! I love it!!


Stock Analyzer

10/12/05 8:05 PM

#6396 RE: BoomTime #6390

SA's EXIT PLAN:

First of all love seeing you at the stockhideout chat room! Exits are always always the one spot of trading that can make or break a trader. I would say that 90% of traders starting out wait too long to sell and dont know when or how to sell. The other 10% are ones that are disciplined from point A to B traders and thats that. I am a A to B person. I look at the charts, I find my support and resistance. I exit just before we hit resistance (because when we hit resistance everyone and their grandmother wants out!) Then if we break resistance you can enter again and hold until just before resistance #2. Same goes for support, buy at support but always know support #2 just incase we dont hold and you need to either sell and re enter, or avgerage down and buy some more to lower your cost average at support #2 (So if you get my drift here I am saying NEVER buy 100% of your stock at one price! Always hold some incase things turn sour and you need to buy more to avg down in hopes to get out even or at a small loss)

Soooo....when to exit. Well, if you know my style its pretty simple. I look at a chart and I use 20,50,100,200 moving average lines as well as previous run highs and lows. These tell me very clearly what my upcoming support and resistance areas are.... look here for example...

Support is at .06 which is the 20 MA line .058 which was a previous LOW on the last uptrend .035 50 MA line and .03 100 MA line

Resistance is at .115 the top runs close and .145 the top of the run. This is a example of a chart I would use for when to BUY as we are currently on a downtrend




NOW when a stock is moving up when to sell....

Well same thing, I look at this chart and see that the upcoming highs of this stock that will act as resistance



So now you know how I find my exits! I also look at RSI, %R, and MACD as my 3 main indicators. When the RSI is trending up over 50 thats bullish same goes for 70 or higher, but 85+ is "caution flag" too high, time to come down. %R is about the same, -50 and going up bullish -20 bullish -10 or higher (meaning -5 or 0) means overbought!) MACD buy when the MACD crosses over and goes on top of the EMA line which is bullish OR when the MACD crosses the 0 line and goes higher....SELL when the RSI goes down below 70 and or below 50, SELL when the %R goes below -20 or -50 and SELL when the MACD crosses the EMA from on top and goes underneath OR when the MACD crosses the 0 line and goes SOUTH..... Now you know the tricks of the trade.