StockFetcher Forums · Filter Exchange · Trading the Fat Pitch<< >>Post Follow-up
ham1198
172 posts
msg #47115
Ignore ham1198
9/22/2006 10:58:24 AM

I saw this on a website:Home Run Hitters wait for the "Fat Pitch"
Kristen Lush
Website: www.TradersAnalysis.com

"Trading the "Fat Pitch" - There are lots of set-ups technicians use to make money in trading equities. Some are more successful then others and some work better only in Bull or Bear markets. However, there is one "set-up" that I have made money on consistently and in all types of markets....all I have to do is wait for the "Fat Pitch"!

Q: What is a “Fat Pitch” profile and how can I profit from it?
A: The "Fat Pitch" is a stock that has had a sharp sell-off in price and is now at point where we can successfully pick a trading bottom. It is usually a fast moving successful momentum stock that has had an extended run and has had a "hard" bout of profit taking occur. Sometimes the instrument trades back to new highs (which is the best "Fat Pitch") and sometimes it only bounces a few % points.

Whatever the success in % return is, the lure of a "Fat Pitch" is its 99% accuracy at picking a tradable bottom. Yes, we will say it again - a 99% accuracy rate - and when we are wrong, your loss is very small (assuming you use are recommended stop loss).

Let’s explain in detail the Set-Up:

Using a daily chart, what is absolutely necessary is to have a combination of the following:
- A RSI 30 Low with
- A Full Sto Low 20 with a crossover.

What will give us a higher degree of consistency and accuracy in the trade working is having the other technical indicators doing the following (these are not necessary but much preferred):

- Williams % Below –80
- ULT below or near Low 30
- Slow Sto Low 20 Below
- Stock needs to be above its 200 day Moving Avg
- We would prefer the stock has pulled back recently from its 2 year or all time high

Q: What are the expectations of a “Fat Pitch”?
A: We would like the “Fat Pitch” to immediately trade to the upside like the example in CUP (AMEX), however, when picking bottoms a stock may sometimes flounder around for a few weeks before the change in price direction occurs. We have seen it take as much as 8 weeks before the upside move comes, but one thing we can say with certainty, there will eventually be an upward change in price direction with almost very little if any more downside in price.
FatPitches.com is a subsidiary of Insight Equity Research Group out of Chicago, IL. We specialize in momentum stocks and the “market timing” of them. Through 15 years of experience trading the equities markets we developed and perfected many types of market-timing set-ups. Two of our favorites are “Fat Pitches” and “Huggers”. The “Fat Pitch” is one of are favorites for accuracy and consistency. “Fat Pitches” don’t occur often, but when they do, its like picking money up off the floor.

This is the filter I came up with but I'm sure it can be refined/perfected:

Show stocks where the Stochastic %K(15,5,3) crossed above the Stochastic %D(15,5,3)
And RSI(30) is below 20
and ULT(7,14,28) < 30
and Slow Stochastic(5,3) Slow %D is below 30
and Average Volume(90) is above 250000
and Williams %R (14) crossed below -80.00 within the last 1 day
and price is above MA(200)
and and close is between 1 and 250

Any thoughts?



ham1198
172 posts
msg #47118
Ignore ham1198
9/22/2006 11:43:59 AM

I've fooled around some and now came up with the following:

Show stocks where the Stochastic %K(15,5,3) crossed above the Stochastic %D(15,5,3)
and /* RSI(2) and ULT(7,14,28) < 30 */
and Slow Stochastic(5,3) Slow %D is below 30
and Average Volume(90) is above 100000
and Williams %R (14) crossed below -80.00 within the last 5 days
and price is above MA(100)
and and close is between 3 and 250

set{XXX, rsi(14) +ultimate oscillator(7,14,28)}
set{var3, XXX / 2}

add column var3
add column var3 1 day ago

I pulled up these on 9/22 and will follow hmsy, etp and iaac. they look the best:
AETH
CG
DYAX
HMSY
ETP
IAAC
N
STXS
LCAPA





TheRumpledOne
6,362 posts
msg #47117
Ignore TheRumpledOne
modified
9/22/2006 11:49:00 AM

Fetcher[
set{Cond1 , count(Stochastic %K(15,5,3) crossed above the Stochastic %D(15,5,3) , 1) }

set{Cond2 , count(RSI(30) is below 20 , 1) }
/* set{Cond3 , count( ULT(7,14,28) < 30 , 1) } */
set{Cond4 , count( Slow Stochastic(5,3) Slow %D is below 30 , 1) }

set{Cond5 , count(Williams %R (14) crossed below -80.00 within the last 1 day , 1) }
set{Cond6 , count( price is above MA(200) , 1) }



set{Cond7 , count( rsi(30) > rsi(30) 1 day ago , 1) }

and add column Cond1
and add column Cond2
/* and add column Cond3 */
and add column Cond4
and add column Cond5
and add column Cond6
and add column Cond7


and close is between 1 and 250

and Average Volume(90) is above 250000

and Cond1 equals 1
and Cond2 equals 1
and Cond4 equals 1
and Cond5 equals 1
and Cond6 equals 1
]







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