txtrapper
548 posts
msg #30780
- Ignore txtrapper |
1/23/2004 8:44:19 PM
karennma
You can't word a filter to catch the best buy/sell signals. That's done by T/A and a lot of research and reading it took me 13 years to get proficent at stock selection, sure SF has helped a lot because you can narrow your search. A filter can provide you with aspects of the stock, especially volume, price, 50 day MA, 10 day MA, support and resistance for them periods, then you must learn about RSI, and other popular indicators, they can give you information, like overbought and oversold conditions, but even with all these tools, it's the market that tells the tale. You can have the best filter in the world, see Muddy Wallman's filter posted on this site, it narrows down your search a lot, it show's stocks down three days in a row, with good volume, and a price range that is adjustable. If you combine that with a couple of MA's, like MA(10) and MA(50), and RSI(2) you have a winning combination there. I would recommend buying stocks that are above the 50 day MA, that indicates strength. Watch volume, if you see black volume increasing two or three days in a row, and that stock fits in your filter parameters, plug it in, and wait for it to go green "that's what a buy" signal is. A good sell signal is if your stock does not move up in a day or two, or moves down over 3%-5%, that's what I call a "sell signal", there are hundreds of traders here, two Muddy and Keith use a reliable system for them. I have developed a "working" system for myself, thru all the reading and research and experience over the years, you will too, the seasoned traders here all have a system that works for them, I recommend buying and studying Stan Weinstein's book "Secrets for Profeting in Bull and Bear Markets", I bought mine on eBay for a few dollars. Another important factor here, when you have a stock on your watchlist, take a look at it on a 2y/d chart, also a 1y/d chart, you will all of a sudden "get a gut feeling about the stocks performance", there it is in black and white, if a stock has been in an uptrend for say three months after a one year consolidation, that stock has power, and is expected to follow the trend. If you find a stock that the last three months, it has been below it's 50 day MA, don't buy it. I may get a lot of feedback on this last statement, but it's true. Stock selection is an "art" not a science. Post your watchlist here and I will be happy to give you some advice on your picks from my point of view.
TxTrapper
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