What moving averages do you use?
I USE THE 50 AND 200 SIMPLE MOVING AVERAGES AS THESE
ARE THE TWO MOVING AVERAGES THAT HAVE BEEN USED
HISTORICALLY BY THE GREATEST MUTUAL FUNDS WHEN THEY GO
TO SUPPORT THEIR TOP HOLDINGS AFTER THEY HAVE PULLED
BACK. IN BULL MARKETS, THE BEST STOCKS WILL EITHER
BOUNCE DIRECTLY OFF OF THESE TWO AVERAGES OR THEY WILL
“HANG OUT” AROUND THESE TWO AVERAGES BEFORE RESUMING
THEIR UPTREND. IN STOCKS THAT GO INTO EXTREMELY
PARABOLIC RUNS YOU CAN USE THE 21 DAY MOVING AVERAGE
AS THIS HAS BEEN A POPULAR MOVING AVERAGE RECENTLY IN
TOP STOCKS.
WE ALSO USE THE 10 DAY MOVING AVERAGE TO SPOT POCKET-PIVOT POINT BUY OPPORTUNITIES AND USE THE 10 DAY AND 20 DAY MOVING AVERAGE FOR SELL SIGNALS IF THESE AVERAGES ARE BREACHED ON VERY HEAVY VOLUME.
What are some other secondary indicators you use besides price and volume?
THERE REALLY ISN’T ANYTHING I USE BESIDES PRICE AND
VOLUME SINCE EVERY TECHNICAL INDICATOR IS BASED OFF OF
PRICE AND VOLUME AND SOMETIMES TIME. I DO LIKE TO LOOK
AT THE RELATIVE STRENGTH OF A STOCK IN RELATION TO THE
SP 500 AS STOCKS THAT ARE USUALLY RANKED 70-99
OUTPERFORM THE REST OF THE MARKET BY QUITE A MARGIN. I
ALSO LIKE TO USE BOP (A PROPRIETARY INDICATOR BY DON
WORDEN ON TELECHART) WITH SMALL-CAP AND MID-CAP STOCKS
AS POSITIVE DIVERGENCES AND GREEN TO MAX GREEN BOP HAS
CORRELATED TO SOME EXTREMELY LARGE PRICE GAINS
What are you looking for in a chart?
WHEN IT COMES TO A PERFECT STOCK THE MOST IMPORTANT
THING IS THE MARKET/SECTOR. IF THE STOCK MARKET IS IN
A VERY BULLISH MARKET AND THE STOCK IS A TOP STOCK IN
A LEADING SECTOR IN THE BULL MARKET I NORMALLY LOOK
FOR A VARIETY OF SETUPS LIKE A CUP WITH HANDLE, A HIGH
TIGHT FLAG, A DOUBLE BOTTOM, AN ASCENDING BASE, A CUP
PATTERN, OR A BOUNCE OFF THE 50 DAY MOVING AVERAGE
INTO NEW HIGH GROUND THAT COMES FROM A BASE LASTING AT
LEAST FIVE TO SEVEN WEEKS LONG. THE VOLUME DURING THE
BASE SHOULD BE VERY LOW DURING THE PULLBACKS AND THERE
SHOULD BE CLEAR HEAVY ACCUMULATION ON THE BOTTOM,
RIGHT SIDE, AND BREAKOUT OF THE BASE. IN A BEAR
MARKET, I TRY TO AVOID GOING LONG UNLESS THE STOCK IS
ONE OF THE TOP THREE STOCKS IN AN INDUSTRY GROUP THAT
IS MOVING HIGHER UP THE LIST AGAINST THE MARKET. THESE
ARE VERY RARE BUT THEY DO SHOW UP (STUDY MY TOP STOCKS
FROM MARCH 2000-OCTOBER 2002)
When do you enter orders?
I ENTER ALL ORDERS TO BE EXECUTED IN THE MORNING AFTER
THE AFTER-HOURS SESSION IS OVER. IT DOESN’T MATTER IF
I ENTER DURING OR AFTER THE AH SESSION, I AM JUST
TRYING TO MAKE IT CLEAR THEY ARE NOT AFTER-HOURS
ORDERS. THEY ARE JUST BEING ENTERED AFTER HOURS TO BE
EXECUTED AT OR AROUND THE OPENING BELL.
Do you ever trade intraday?
1% OF MY ORDERS ARE ENTERED INTRADAY. THIS WOULD BE IF
A LIMIT ORDER IS MISSED AND THE STOCK IS STILL NOT TOO
EXTENDED TO BE DEEMED TOO DANGEROUS TO ADD TO. IF IT
IS STILL WITHIN A PROPER PIVOT POINT RANGE, THEN I
WILL GO IN INTRADAY AND BUY IT. THIS NORMALLY APPLIES
TO VERY THIN STOCKS AND IF YOU ARE A NEWBIE YOU
SHOULDN’T BE INVESTING IN ANYTHING UNDER $100 MIL
MARKET CAP.
What is your favorite stock?
A STOCK THAT IS MOVING UP OR DOWN IS MY FAVORITE STOCK. I DO
NOT LABEL STOCKS AS ALL STOCKS ARE BAD EXCEPT FOR YOUR
BEST STOCK AND IT IS ONLY GOOD IF IT IS MAKING YOU MONEY. IF THE STOCK IS NOT MOVING HIGHER, IT IS NOT MY FAVORITE STOCK. MY FAVORITE STOCK IS ALWAYS CHANGING. IT IS ALWAYS THE ONE MOVING THE FASTEST IN THE CORRECT DIRECTION.
When do you sell?
THERE ARE MULTIPLE ANSWERS TO THIS. WHEN I AM CUTTING
A LOSS, THE NORMAL PROCEDURE IS TO COMPLETELY CUT MY
LOSS AS SOON AS THE STOCK CLOSES BELOW THE LOW OF THE DAY OF THE SIGNAL DATE, IF IT DOES NOT MOVE HIGHER IMMEDIATELY. SINCE ALL OF MY PURCHASES COME WITH THE STOCK ABOVE THE 50 DAY MOVING AVERAGE LINE, IT SHOULD NEVER TRADE BELOW THIS INITIALLY AFTER THE PURCHASE, IF IT IS STILL ABOVE THE LOW OF THE DAY OF THE SIGNAL DATE. AS THE STOCK IS RISING, THE 50 DMA WILL CONTINUE TO ACT AS AN AREA WHERE I WILL PARTIALLY SELL SOME OF MY HOLDINGS. OTHER AREAS THAT I PARTIALLY SELL OUT OF ARE WHEN THE STOCK HITS NEW HIGHS FOR A COUPLE OF WEEKS IN A ROW ON LOW VOLUME, WHEN THE STOCK GOES INTO A CLIMAX/PARABOLIC RUN ON EXTREMELY STRONG VOLUME, WHEN THE STOCK GAPS HIGHER AFTER A LONG RUN ON VERY STRONG VOLUME, IF AFTER A LONG UPTREND THE STOCK BREAKS ABOVE A LONG CHANNEL LINE, AND IF AFTER A GAIN OF MORE THAN 200% MY
FINAL SELL WILL BE WITH A CLOSE BELOW THE 200 DAY
MOVING AVERAGE.
What is your final deciding factor in selling a stock?
IT STOPS MAKING ME MONEY OR I START TO LOSE MONEY. A CLOSE BELOW THE 200 DAY MOVING AVERAGE AFTER A VERY LARGE GAIN, A CLOSE BELOW THE 50 DAY MOVING AVERAGE OR LOW OF THE DAY AFTER THE STOCK MOVES LOWER IMMEDIATELY AFTER BUYING IT. I SELL IMMEDIATELY IF A STOCK DOES NOT WORK. IT SHOULD PRODUCE GAINS OFF THE BAT OR IT IS DELETED.
How much do you allocate to each trade?
AT THE START OF A BRAND NEW BULL MARKET THE PERFECT
SITUATION WOULD BE TO HAVE 10 PERFECT CHARTS AND PUT
10% IN EACH ONE AS I NEVER PUT MORE THAN 10% IN ANY
ONE STOCK. HOWEVER, THOSE WITH ACCOUNTS UNDER $25K MAY
WANT TO BUY UP TO AS MUCH AS 25% IN ONE STOCK IF THE
BULL IS BRAND NEW, THE FUNDAMENTALS ARE GREAT, AND THE
CHART IS PERFECT. AS A BULL MARKET GOES ALONG, I
NORMALLY DON’T LIKE TO PUT MORE THAN 5% IN ANY ONE
STOCK AS A LOT OF PERFECT CHARTS FAIL A LOT MORE
OFTEN. BY THE TIME 2007 CAME AROUND AFSI WAS ONLY 5%
AND TESO WAS 4.5% AT THE FINAL BUY. IST WAS 10%, FMDAY
8%, AND TASR 7.5% AT MY FINAL BUYS WHEN THEY BROKE
OUT. I JUST GET A LOT MORE CAUTIOUS AS TIME GOES
ALONG, SINCE MY ACCOUNT HAS GROWN. WITH A SMALLER
ACCOUNT YOU CAN FOCUS MORE BY MAKING 5 STOCKS
REPRESENT 100% OF YOUR ACCOUNT. IN A BEAR MARKET I
WILL ONLY GO 10% INVESTED IN THE EX-GENERALS OF A PREVIOUS MARKET UPTREND. MOST SHORT POSITIONS WILL BE WITHIN 2-5% OF TOTAL ACCOUNT VALUE AS SHORT COVERING RALLIES CAN BE EXTREMELY PAINFUL. I DON’T MIND BEING 100% SHORT IN A DOWNTREND. HOWEVER, I USUALLY WANT SOME CASH ON HAND FOR WHEN THE LONGS SHOW UP WITH PERFECT CHARTS. YOU WANT
TO DEFINITELY HAVE CAPITAL AVAILABLE FOR THOSE.
What about averaging down?
IF YOU HAVE A COUPLE OF BILLION DOLLARS, THIS STRATEGY
MIGHT BE WORTH A LOOK. BUT IF YOU HAVE A BILLION OR
LESS, YOU CAN MAKE A LOT MORE MONEY BY BUYING STOCKS
THAT ARE MOVING UP, SHORTING STOCKS THAT ARE MOVING
DOWN, AND BEING IN CASH DURING MARKETS THAT ARE CRAZY
AND GO BACK AND FORTH. THE BEST STOCKS TREND ANYWHERE
BETWEEN 6 TO 18 MONTHS AND THERE ARE ALWAYS GOOD
STOCKS POPPING UP IN BULL MARKETS TO ALWAYS HAVE YOUR
MONEY WORKING IN EQUITIES THAT ARE MAKING YOU MONEY.
IN BEAR MARKETS, YOU CAN ALWAYS FIND STOCKS THAT ARE
BREAKING LOWER AND CONSTANTLY MAKE SURE YOUR MONEY ARE
IN THOSE TO MAXIMIZE YOUR GAINS. WHY THROW GOOD MONEY
AT BAD? DO YOU REALLY WANT TO TRADE LIKE A
MULTI-BILLION DOLLAR FUND? CRAMER’S METHODS ARE NOT
GOOD FOR MOST. IF YOU ARE HERE, CHANCES ARE, THEY ARE
NOT GOOD FOR YOU EITHER.
Do you buy bargains? On sale?
IN THE STOCK MARKET YOU GET WHAT YOU PAY FOR. OH THE
BARGAINS OF ENRON, ADELPHIA, AMBAK, NEW CENTURY,
ACCREDITED HOME LENDERS, ENGAGE TECHNOLOGIES, CLARUS,
CITIGROUP, BEEZER, REFCO, AND SO MANY OTHER STOCKS
THAT HAVE GONE FROM 70 TO 60 TO 50 TO 40 TO 30 TO 20
TO 10 TO 5 THROUGHOUT THE YEARS. EVERY ONE A PINTO. NONE A MERCEDES. ON SALE? THEY DON’T CALL IT A FIRE SALE FOR NOTHING. MOST SALES
BURN THE STOCK TO THE GROUND. HISTORY HAS PROVEN THAT. STOCKS MAKING FRESH BRAND NEW 52-WEEK HIGHS GO ON TO MORE THAN DOUBLE THE PREFORMANCE OF STOCKS HITTING FRESH BRAND NEW 52-WEEK LOWS. HISTORY HAS PROVEN A STOCK HITTING NEW HIGHS FOR THE FIRST TIME USUALLY
KEEPS HITTING THEM AND THE OPPOSITE IS TRUE OF STOCKS HITTING NEW LOWS FOR THE FIRST TIME.
Do you buy ETFs?
YES. THANKS TO THE INVENTION OF 2X AND 3X ETFS THESE ARE NOW A VIABLE OPTION FOR USING WITH MY MARKET DIRECTION MODEL. UNDER A FULL BUY SIGNAL GOING LONG A 2X OR 3X MARKET ETF CAN PRODUCE SIGNIFICANT GAINS. THIS IS ALSO TRUE UNDER A SELL SIGNAL. UNDER A SELL SIGNAL USING A 2X OR 3X SHORT ETF CAN PRODUCE SIGNIFICANT RETURNS. THE BEAUTY OF ETFS COMES WITH RETIREMENT ACCOUNTS. UNTIL 2008 DURING EVERY BEAR MARKET RETIREMENT ACCOUNTS WERE OUT OF LUCK AS YOU HAD TO PARK YOURSELF IN CASH AND WAIT FOR THE NEXT UPTREND. NOW THANKS TO 2X AND 3X INVERSE ETFS YOU CAN NOW BUY ETFS THAT MOVE HIGHER AS THE MARKET MOVES LOWER. THESE ARE ALLOWED IN RETIREMENT ACCOUNTS AND NOW GIVES RETIREMENT ACCOUNTS A CHANCE TO PROFIT IN BEAR MARKETS.
If you have further questions, leave them here, please.
Hi Josh, do you structure your account to minimize income taxes by using a financial vehicle similar to a personal hedge fund, from which you then pay yourself a salary out of profits as needed and perhaps fund a 401k?
Over the next year I’m moving from Florida, which has zero income taxes, to Hawaii…so…I’m wondering if you would mind giving advice on taxes briefly (for all readers…and…if you wouldn’t mind, for Hawaii in particular).
Thanks as always!
This is not my area of expertise. I am a simple stock market investor. I am setup in Hawaii and just pay the normal cap gains taxes. I have the best accountant in Lahaina and he does eveyrthing.
I have absolutely ZERO interest in taxes and do everything I can to avoid them.
I am for a flat tax of 20% or a sales tax. I HATE taxes.
Since I am moving off of Maui eventually (cost of living has gone nuts and it is no longer Paradise) I really have no idea about what to do in regards for that.
I am a great stock market investor. I can turn thousands into millions but I have no clue about taxes.
I apologize.
“no longer Paradise” ?? Something else other than cost of living, too?
Just curious…my father was stationed in Hawaii when I was a kid and it is one of the few places I thought I would actually like to live, so, you’re kind of bumming me out.
Thanks for your reply nonetheless.
Well Maui is just a clusterf*ck of cars now on our one major highway all over the island.
Cost of living is skyrocketing and the attitude of people here is getting outrageously out of control–due to overcrowded conditions.
Just go to http://www.omaui.com and read the discussion board there. You will get a feel for what you would be in store for out here.
All I know is that when I moved out here (the year before the first timeshare) things were great,,,within 3 years the downhill spiral started,,,,and now I do not like where I live.
on top of that the surf conditions have become horrible. Past two years we have had 1 good south swell and 3 good norths. You used to get 4 HUGE north shore swells and a couple of southies. But now nothing.
And when there is surf………….UGH! Foget it! Just like the island,,,too crowded and the attitudes are horrible.
Now if you want to surf a crappy wave, you can find uncrowded breaks. But once you learn and you can handle but you realize you don’t enjoy what you do because of the people it is a real “bummer.”
Yeah Maui No Ka Oi……but for how much longer? It is just too expensive. I can cut my cost of living by 60% by moving back to the mainland.
If not for my gf I would stay here forever. But I bet, eventually, I would hate it. it is probably best to move and then return one day to a diff. island like Big Island or Kauai.
I do love living here but if I can handle the mainland I would like to move back to a normal state.
If you like to KEEP your money, don’t move to Hawaii. This is the most socialist state you will find. The more you make, the more they WILL take.
…you have no idea how much that bums me out….fffffff can’t believe it…would have felt better being margined long CSCO
thanks for the link
you are welcome.
best to know everything before you come to Hawaii.
If this was Dubai, it woudl be cool….but it being on a rock sucks.
i really love it here and would never move if i had the say so.
but my gf is right, you have to be either really old, really wealthy, or really local to fit in out here.
there just isn’t enough to do. i love it but most do not.
i have made friends with 50 people and 3 still live here.
and one of those friends will be leaving within the next year.
Paradise is still alive on Kauai, Molokai, and the Big Island and Maui’s east coast is still cool but the problems now on this small island are REALLY BAD!!!
sadly my first year here was the last year Maui was Maui….or so they tell me. Timeshares KILLED it.
Josh,
1. What tools do you recommend? Telechart? Anything else?
2. Why don’t you participate in the Columnist Conversation at Realmoney?
3. Move to Puerto Rico, it is still U.S., you can still surf (Rincon!), pay no federal income taxes, and cost of living is lower.
1.
Telechart (Gold is fine)
IBD
Daily Graphs Premium Equity Package
RealMoney
Stocks & Commodities Magazine
SFO Magazine
Tradesation, Interactive Brokers, MBTrading, Tradeking, Zecco, and Scottrade
sharkinvesting.com
yahoo and Fox news
2.
Not yet. I am not going to get involved with that NON-SENSE until a new bull market starts. Then I can start getting cocky (like they do) with longs and reap some big winners. Then they will listen to me. For now….forget them! But for the readers, I will particpate later.
3.
I would love to!!!!!!!!!!!!!!!!!! I would do it RIGHT NOW!!!!!!, if you could help me adjust. Too bad it is my girlfriend. I love her and she loves her family. They are ALL in Ft. Worth, TX so I have no choice. It is ONLY Ft. Worth, TX. No other place is even possible.
I would love to visit! Do you live there? Would you like a free one-on-one personal lesson? Let me know. I have always wanted to visit. I am sure the surf is better to and as you can imagine I am very respectful in the water. Don’t tempt me.
I am originally from Puerto Rico, but I live in New York now. However, I would be happy to take a week of vacation to go home and show you around the island, just say when.
Another question: Are you able to post when you close your positions? It might help us newbies.
I do. That is part of the Gold package. They are all in the forums.
Yes, I would like to do that. We will have to arrange that. That would be incredible! I would want to go when it is the warmest as I do not like any cold.
Josh,
I’m a new subscriber. I see how you recommend new positions both long and short, but where do you post your “unwind” recommendations when you reverse your position? Also, do you ever use options instead of the equities directly? Thanks
they are posted on the forums under the category ‘stocks I am selling’
I never use options. 80% expire worthless. This game is about odds, anyone playing that game better have an amazing methodology or else you will never do as well as my returns on 4 to 1 margin.
Options are simply either a game for COMPLETE amateurs as they see the “get rich quick” in it. Which is the ONLY reason it entices so many people: greed. The few pros that know how to use options normally write them or they buy low IV, long dated, inthemoney options of very liquid names.
Trying to buy breakouts with options or short stocks for the pops lower will leave you with more pain than gain.
I stick with the stocks and I have since 2001. I am never going back. I know my deal but to each there own.
Hey Joshua, one of my age-old questions is how closely should I watch the stocks I just exited? I used to keep them on a watchlist and monitor them. It seems like many would reverse later and go on to be gains that I missed. It seems like I could have re-entered as they crossed back over the 50d, for example.
I’ve even heard some speakers at investment club meetings say that you should follow previous holdings because now you have “experience” with that stock and have invested time in learning how it moves. But I’m not sure I believe that. Maybe if you are a day trader with a “bread & butter” stock that you churn every day, but probably not for CANSLIM or swing trading.
But now I just put them behind me and never look at them again. No point in kicking myself about things I missed when there’s always another stock.
Is this different if you’re shorting? I know W. O’neil says that you may have to be persistent if your short doesn’t break down after the 2nd or 3rd attempt at a moving average. So would it be prudent to monitor shorts I just covered, as long as the market is bearish?
Thanks!
Good question Brian.
As soon as I sell a stock I am long…that is it. I don’t give a crap about it. I don’t care if I ever see it again, I don’t care if it goes lower, goes higher, exist, or delist. It doesn’t matter to me until the next time it shows up on one of my scans and is making a move that I need to do something with. I simply follow too many stocks to ever want to go back to something i just sold. I say live and let live. Move on and let go. It is like an ex-girlfriend. Sure it hurts A LOT that they left you. It does. But….like stocks….there will be another one eventually.
Amen, Brian. You said it….put them behind you. Never look at them again. Because, if you sell and it goes lower you will pat yourself on the back for how much a genius you are (which isn’t true) or if it runs right after you dump it you feel like an idiot (which isn’t true). It is best to ignore former holdings until they show up again on your scans and then whatever they do to become another play is up to them. I just never worry about any long I was once long, even if it runs like EMS did in 2006-2007.
I accidentally sold all of my long in this stock when I should have only sold 25% back on 11/28/06 for a 20% gain. The rest should have produced a 200% gain in 11 months. Instead my SCREW UP netted me a 20% gain in three months. This was my biggest mistake in selling a long too early. It sucked but it sure didn’t beat me up.
I find it worse when I mess up an order like I want to buy 100 shares but instead type 1000. Why I think that is worse is because in December I bought a small amount of ASYS that ended up becoming much larger and a horrible fill combined with a nasty session did a LOT more damage than missing gains ever could.
I also find it worse to not go long a stock and then see it run 100%. I don’t care if it is even $500 in a $5,000,000 account. I want some of it!!!!!!! Especially when commissions are only between $1 to $5 on all of my platforms. If you are paying more than $5, you pay WAY TOO MUCH. Even $7 at scottrade is too much, nowadays.
When it comes to shorting, I almost expect to be wrong a few times before NAILING it. So yes it is different. You must monitor your favorite stocks for places to short since it is such a harder play with lower odds of success. Just look at chemicals. If they fail here and go to new highs, they are still the best leading stocks of the five year plus rally. Therefore, whenever their time comes I want to be there. No matter if it is now or 3 to 5 more attempts. When MOS MON AGU TRA TNH POT are ready to break they are going to break hard. I am looking for 75% gains in about a year’s time frame with these leading stocks in the top sector.
YOU ARE VERY WELCOME!!!!! i HOPE THIS ANSWER CLEARED SOME! THINGS UP.
For those of you looking for more info on CANSLIM:
here is what AAII uses when they apply the CANSLIM methodology…
http://www.actwin.com/kalostrader/CANSLIMDesc.htm
Hello everyone,just joined the site. Love the canslim system. looking forward to learning to use it better.
Welcome aboard.
Before every market day make sure you go to:
Bronze Commentary
New silver longs
New silver shorts
the forums (for my daily sells/covers)
They are always updated by 6am EST the next day.
All of the conversation and comments where discussions go about are posted in the “bronze commentary.”
Nobody ever speaks here.
ALOHA and welcome aboard.
hey, i just read “how to make money in stocks” in which o’neil states that all losses should be stopped at 8% no exceptions, however i remember you mentioning in one of your past commentaries that for newbies up to 10% is ok…as a newbie myself, is 10% recommendable for me or should i stick to o’neills hard stick rule of 8%?
Also, in your boards there is a special forum for platinum members called “speculative stocks”, does that mean that gold members only get access to your canslim quality picks but not the speculative ones?
love the site, really appreciate what your doing and how you try to help people who still aren’t members of your site through all the free information you have on here and the commentaries…keep up the great work and i look forward to joining your site very soon!
I am a newbie subscriber too and trying to skulk around the information on the site. I am getting a better feel for how you trade and it is somewhat similar to my thinking- which is good I guess. I wonder, though, if you use secondary indicators such as MACD or $BPNYA to help confirm a buy? I have been using $BPNYA to trend the market as a timing tool and it has been pretty good but not perfect. I use MACD and the 13/34 crossovers to confirm the buy of the stock. Thoughts? Comments?
I know the MACD and do not use it. But I don’t find ANYTHING at all wrong with it and would use histogram MACD for futures.
I have all my Past Big Winners on my website. That is what I use. Nothing else is needed. The rest is noise. I know the market like the back of my hand. ADX works for trending. when it is below a certain number like 20 not a trending market when it is above 20 it is a trending market. But I have my own eyes and am so skilled at what I do I don’t need these things.
Do they help sure. But do now how often you will get conflicting opinions if you use too many indicators. We call it analysis paralysis.
To go long: I use the trend of the market, the amount of nice longs, and the amount of nice charts. That’s all I need anymore
However, MACD, RSI makes sense in futures for me.
I give you FULL 100% granting to use the MACD or MACD histogram and as for your 13 ema/34 ema crossovers I know for a fact this works for long-term trends. Right now the 13/34ema on the Nasdaq will show you exactly how much work we have. Plus this link at breakingpoints completely goes ind depth about the working of 13/34.
I think David you have a fantastic system: I am a fan of MACD (just not for my stock selection) and if you know how to use it great keep it up! As for the $BPNYA as long as it is like the ADX where it tells you if you are trending or not, I can COMPLETELY TELL NEWBIES to use this as they are too impatient however I do know the weekly 13ema/34ema works on the general market and we are A LONG LONG LONG way from the 13 crossing the 34 to the upside.
Great work David. I can’t say there are any problems with your work
Keep it up buddy!
Hi Joshua ~
I notice on your commentary that you use candle-stick charts more often than HLOC.
Is there a book on candle-stick charts you would recommend over others?
Thanks and best of luck in 2009!
Steve
Hello Steve
Yes:
Candlestick Charting Explained by Gregory Morris (I own)
and
Japanese Candlestick Charting Techniques, Second Edition by Steve Nison (I let someone borrow it and they “lost it”
)
The main reason I use candlesticks is because they show up on the chart SO MUCH MORE CLEAR. I can tell the intraday range and where the stock opened and closed very fast. To scan 100 with canles might take a minute. Scanning 100 with HLOC would take at least two minutes. So it is about the ease to read the charts. But some candlestick patterns allow you to see either very bullish setups or bearish setups that helps you have more conviction when going long/short.
Hope that helps Steve.
Thanks so much. I’ll pick em up.
Makes a lotta sense.
Appreciate the prompt response. You run a great service.
Best,
Steve
Thank you Steve. You are very welcome.