Hi friends
It is always a big dilemma when it comes to finding stocks ready to move.
how to handle this perennial problem?
somebody requested me -he thought I am expert while I am really not.
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Request
inspite of hard effort , i am unable to find (shortlisting) right stocks for daily trading ,
plz throw some light on steps how to find a suitable stocks or exploding stocks at eod for trading next day ..............
also sir in live trading how one can find that this particular stock will move today ? what indication in early hours to see .........................
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THE SOLUTION IS POSSIBLY LIKE THIS
FOR POSITION TRADING USE WEEKLY CHART AS BASIS
FOR INTRADAY TRADING USE 4 HOUR CHART AS BASIS.
(IF NOT ENOUGH DATA TRY HOURLY CHART)
HOW TO GO?
DO THE FOLLOWING
TAKE A DAILY CHART AND DRAW PRICE-TREND LINES
THEN SINCHRONISE IT WITH MACD (MACD-SIGNAL CROSSOVERS) OR STOCHASTICS(OVERBOUGHT SELL OR OVERSOLD BUYSIGNALS)
ALSO
USE SUPPORT RESISTANCE LINES TO SEE REVERSALS
NORMALLY PRICE MOVES OCCUR AFTER VOLUME SPIKES.
YOU CAN DO SAME EXERCISE ON 4 HOUR CHART AND USE
THE TRENDLINES- SUPPORT RESISTANCE LINES WITH INDICATOR SIGNALS
AND TRADE ON 3MINUTE CHART(IF YOU ARE REALLY FAST ) OR IF YOU ARE SLOW USE 15 MINUTE OR 10 MINUTE CHARTS.
PLEASE READ MY POST ON TSTW AND TRADE STOCHASTICS ETC
THE ONLY RELIABLE INDICATIONS YOU CAN GET ARE FROM TRENDLINE BREAKS AND SUPPORT OR RESISTANCE BREAKS OR BREAKOUTS-NOT FROM INDICATORS AS INDICATORS ARE THERE TO MAKE YOU LOOSE YOUR MONEY FAST-
NOTHING IS EASY. GET CONCEPT RIGHT-- TEST-- RETEST --UNDERSTAND FIRST-THEN APPLY
THIS IS MY ANSWER
==========================================================
Here is a solution but average trader cannot follow it.almost impossible.
=========================================================
Donchian showed the way to make millions of dollars to richard Dennis.
Donchian himself started using his method after he was 65 years old.
THE 4 WEEKS RULE
BUY IF PRICE BREAKOUT ABOVE HIGHS OF PAST 4 WEEKS AND EXIT IF PRICE FALLS BELOW LOWS OF PAST 2 WEEKS.
20DAY HIGH BREAKOUT BUY WITH STOPLOSS AT 10DAYS LOW.
FOR SHORTING,
SELL ON PRICE FALL BELOW PAST 20DAY LOWS AND BUY BACK IF PRICE MOVES ABOVE PAST 10DAYS HIGHS
TARGETS CAN BE SET IN DIRECTION OF TREND BASED ON VOLATILITY.
It is always a big dilemma when it comes to finding stocks ready to move.
how to handle this perennial problem?
somebody requested me -he thought I am expert while I am really not.
------------------------------------------------------------
Request
inspite of hard effort , i am unable to find (shortlisting) right stocks for daily trading ,
plz throw some light on steps how to find a suitable stocks or exploding stocks at eod for trading next day ..............
also sir in live trading how one can find that this particular stock will move today ? what indication in early hours to see .........................
------------------------------------------------------------------
THE SOLUTION IS POSSIBLY LIKE THIS
FOR POSITION TRADING USE WEEKLY CHART AS BASIS
FOR INTRADAY TRADING USE 4 HOUR CHART AS BASIS.
(IF NOT ENOUGH DATA TRY HOURLY CHART)
HOW TO GO?
DO THE FOLLOWING
TAKE A DAILY CHART AND DRAW PRICE-TREND LINES
THEN SINCHRONISE IT WITH MACD (MACD-SIGNAL CROSSOVERS) OR STOCHASTICS(OVERBOUGHT SELL OR OVERSOLD BUYSIGNALS)
ALSO
USE SUPPORT RESISTANCE LINES TO SEE REVERSALS
NORMALLY PRICE MOVES OCCUR AFTER VOLUME SPIKES.
YOU CAN DO SAME EXERCISE ON 4 HOUR CHART AND USE
THE TRENDLINES- SUPPORT RESISTANCE LINES WITH INDICATOR SIGNALS
AND TRADE ON 3MINUTE CHART(IF YOU ARE REALLY FAST ) OR IF YOU ARE SLOW USE 15 MINUTE OR 10 MINUTE CHARTS.
PLEASE READ MY POST ON TSTW AND TRADE STOCHASTICS ETC
THE ONLY RELIABLE INDICATIONS YOU CAN GET ARE FROM TRENDLINE BREAKS AND SUPPORT OR RESISTANCE BREAKS OR BREAKOUTS-NOT FROM INDICATORS AS INDICATORS ARE THERE TO MAKE YOU LOOSE YOUR MONEY FAST-
NOTHING IS EASY. GET CONCEPT RIGHT-- TEST-- RETEST --UNDERSTAND FIRST-THEN APPLY
THIS IS MY ANSWER
==========================================================
Here is a solution but average trader cannot follow it.almost impossible.
=========================================================
Donchian showed the way to make millions of dollars to richard Dennis.
Donchian himself started using his method after he was 65 years old.
THE 4 WEEKS RULE
BUY IF PRICE BREAKOUT ABOVE HIGHS OF PAST 4 WEEKS AND EXIT IF PRICE FALLS BELOW LOWS OF PAST 2 WEEKS.
20DAY HIGH BREAKOUT BUY WITH STOPLOSS AT 10DAYS LOW.
FOR SHORTING,
SELL ON PRICE FALL BELOW PAST 20DAY LOWS AND BUY BACK IF PRICE MOVES ABOVE PAST 10DAYS HIGHS
TARGETS CAN BE SET IN DIRECTION OF TREND BASED ON VOLATILITY.
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