StockFetcher Forums · General Discussion · Easy way to swing trade and make good returns<< >>Post Follow-up
Noahedwinbeach2
135 posts
msg #41193
Ignore Noahedwinbeach2
2/14/2006 12:51:32 AM

Find stocks that are following the general market trend like the NASDAQ(I prefer)

Screen something like

Show stocks where high reached a new 2 year high within the last 8 weeks
Show stocks where Close gained more than 100 percent over the last 6 months

Then sort through the stocks and figure out which ones mimick the market when the market advances. Next time the market advances buy the stock and the stock will go up right after the market does. It is kind of like fortune telling. 75% of all stocks follow the general trend of the market so it makes sense to trade that way.

I use the weekly MACD(6,13,5) chart for the NASDAQ to identify market turnarounds. I use the charts on prophet.net. Make sure the values are 6,13,5 and it is set to weekly chart. It will let you know when the next bull is starting. Then be prepared with your list of stocks that have followed the market. Just buy them on that same week the MACD crosses over and you will be amazed.



Noahedwinbeach2
135 posts
msg #41194
Ignore Noahedwinbeach2
2/14/2006 12:54:36 AM

I forgot to mention to sell your stocks when the market MACD crosses back below again. You can also use this indicator to short stocks. Just make sure you pick stocks that are weak and go down more in bull cycles than they go up. One example is DELL.


EWZuber
1,373 posts
msg #41217
Ignore EWZuber
2/15/2006 2:06:16 AM

There are daytraders that use a similar approach. They find a stock that follows the S$P 500 very closely, then watch the S&P futures. When futures are rising and your stock starts to line up for a buy signal the odds are greatly increased in your favor that it will rise as well when the trigger point is reached.


Noahedwinbeach2
135 posts
msg #41303
Ignore Noahedwinbeach2
2/18/2006 3:32:34 AM

I hate day trading though. I find more money can be made swing trading on a longer time frame. On top of that I keep my sanity. On the next bull run in the market I think I will buy 5 stocks that follow the market that way my odds are better I will win.


mjk1234
2 posts
msg #41412
Ignore mjk1234
2/20/2006 7:13:19 AM

You might try a similar approach but wait for a pull back. I like to use the linear regression slope feature in SF as a guide. Check for stocks that hit a N month high several days ago and see if they have declined any recently. If they come down to the lower linear regression line they usually bounce off it and go back up. Take a look at DTV for an example of the patter. Put draw linear regression(45,1.0) on in your settings. Then write a filter to replicate that pattern. If you really want a kick, compare DTV to DIA and you will notice a similarity of pattern. Use comparative relative strength(dia,45) in your settings and filter for whenever it is ascending.

This is a swing trade approach.


EWZuber
1,373 posts
msg #41440
Ignore EWZuber
2/21/2006 2:32:36 AM

I didn't suggest anyone take up daytrading. Just stated that I know some daytraders use this approach.


markcrisp
187 posts
msg #41445
Ignore markcrisp
2/21/2006 7:26:48 AM

same here..i know people who make big bucks day trading...but it aint for me... Drives me crazy!

I prefer to catch nive 50%+ moves in TIE, HANS, etc...:-)


rrochon
117 posts
msg #41503
Ignore rrochon
2/22/2006 6:28:40 PM

Noah,

I modified your filter as:

Fetcher [Show stocks where high reached a new 2 year high within the last 8 weeks and Show stocks where Close gained more than 100 percent over the last 6 months and close between .5 and 10 and average volume(90) above 100000 and volume above average volume(90)]

In PN I added the SAR, MACD (as you rec) and MA5, and I use the Russel 2000 ($RUT), because it want small cap stocks. Often SAR, MACD and price > MA5 all happen at the same time. Check what happens to the stocks that SF brings up for the first 5 days when the indicators all agree. Just add, "and date offset is 5", to the filter. Also, 4, 3, 2, and 1. After 6 or 7 days the results are not as positive, but if you buy the first 5 stocks the returns are unbelievable.

If you wanted to also play the short signals you would need to use prices above $5.

I'm excited.

Thanks,

Dick


mightymouse
3 posts
msg #50198
Ignore mightymouse
modified
2/23/2007 6:35:53 PM

Anyone still using these filters and liking them? I've had some good success with them this past week!



StockFetcher Forums · General Discussion · Easy way to swing trade and make good returns<< >>Post Follow-up

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