 Platinum Customer
Joined: 4/17/2006
Posts: 271
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Would 2/5 have signaled buy for MTMC?
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Registered User
Joined: 10/7/2004
Posts: 2,181
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You got very acceptable signals on 1/31 and 2/01...which would have gotten you in for that nice move yesterday.
But 2/05 is sure not ugly by any means.
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Platinum Customer
Joined: 4/17/2006
Posts: 271
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Thanks for pushing me to look more closely to find earlier signs....Dialed it down to 1 hr chart and voila! Sure enough, as early as 1/31. Thanks again.
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Registered User
Joined: 9/22/2005
Posts: 849
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What scans are you useing to bring things likr this up for consideration?
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Platinum Customer
Joined: 4/17/2006
Posts: 271
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Hi, BC. I've been experimenting with different breakout scans. Limit your scan: 1) to a price range you like, e.g. <=$10; 2) to a minimal volume so there's at least fairly good liquidity (e.g. Vol =>100,000) or set Vol 90 Day with a value from 50 to max. Then do a search in Worden Discussion threads for “breakout pcf” or “breakout scan”...You'll get lots of variations on breakout scans, e.g. for a breakout from a 150 day time frame, diceman in one thread provided the pcf C>MAXH150.1. Include that PCF into your scan that sets your price and volume parameters. Try different breakout timeframes. Hope this helps some.
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Platinum Customer
Joined: 4/17/2006
Posts: 271
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Also, once I've got my list of stocks to visually go through, I find it useful to add a Rate of Change indicator to an MACD or Stoch then sort by the ROC in descending order. That will give you the stocks with the fastest/highest upwards ROC at the top of your list.
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Registered User
Joined: 5/17/2005
Posts: 221
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Hi shark .... I have to have some input on this one.
MTMC is not one I would trade as :
1) The volume is very low. I would only need $800,000 to manipulate the price.
2) The primary trend is down
3) Look at the long wicks that are typical on the candles on the days when the stock had volatility , as on Dec 5th. These are when the market makers are setting bull traps , forcing the stock up , making it look like a break out. Then they sell at the higher price as momentum buyers step in. Overall this would be a higher risk stock to trade , unless you were holding for the long term.
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Platinum Customer
Joined: 4/17/2006
Posts: 271
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Hi, Malcolm. As a rookie, I welcome all feedback. Info re long wicks and bull traps good info to consider...thanks. I tend to look for very short term trades and day-trades. To my eye, MTMC looks like it's transitioning out of a downtrend and into an up. BOP, TSV, MS, OBV greatly improving. ADX/+DMI on the move. As far as the spikes, do you interpret it differently if it's accompanied by big volume vs low vol? The spike 12/5 was on relatively big vol. Can there be that much of an increase in vol if it's just market makers manipulating the price vs "real" interest? Thanks for your feedback. Much appreciated.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Sharkattak: Malcolmb14 is correct in his assessment
you need to be carefull.. If you had used my entry scenario of buying into strength, then a buy would never take place. (in this case)
As Tobydad has stated, always look at the set up of the curent situation, what was happening right before the springboard.. Is this a bull trap??
Always remember - A springboard or any other positive candle is not a buy signal unless everything else is in place for a run up in price.. (Indicators, set-up, Trend, Market conditon)
Good luck to you..
Apsll..
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Registered User
Joined: 9/21/2005
Posts: 566
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Stock had a big drop, any more thoughts from more experienced people than me on what made the stock unattractive for purchase?
Apsll, what is your entry scenario of buying into strength?
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Registered User
Joined: 10/7/2004
Posts: 2,181
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Look at the trendline drawn from the lows of Dec through the lows of January; the pull back has not yet hit that line so I see this as part of the "breathing" a stock will do.
Now, it may end up that, indeed, this was not a good pick...time will tell. But it doesn't mean we can't take advantage of 17%-inside-of-a-month moves like this one.
Have a look at 2/06, the candlestick is what I call a bomb (see the fuse on top?...just waiting to blow up in your face?). But, for me, the real key is the fact that the price has become completely detached from the upper 20,20 bollinger band. It has no support, nothing from which to push off to help it climb higher. It's like a roller coaster cart going too fast; if it leaves the tracks, well, only one thing can happen from there.
Further, look at the volume patterns for the last month or two. Most of the jumps in volume have been on up days; not necessarily C>C1 but certainly C>O.
For anyone wanting to know more about the strategy I use, yesterday's MCTTF does not necessarily spell disaster. It has pierced the support of the LR30, a penny below its low would become my stop loss. Then when the price gets back up over the LR30 (or any other acceptable bullish signal that fits your criteria), get back in. Of course, there's always the cbo on consecutively lower highs.
(If I'm talking too much just let me know...am I talking too much...my wife says I talk too much...I don't know, what do you think?...I don't think I talk that much...in fact, just the other day I was talking to a friend who says I talk too much, and, well, I said to him....)
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Registered User
Joined: 9/21/2005
Posts: 566
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Tobydad, too much talk is never a bad thing if it comes from experience.
Just wandering why you call the 2/6 candle a bomb as it appears there were similar candles in the recent past?
Also, at some point any stock will seperate from upper BB, do you always view that as a sell signal on an up move?
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Jcjla7: my Entry scenario can be found in another thread that I posted on
http://www.worden.com/training/default.aspx?g=posts&t=19472
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Registered User
Joined: 3/21/2006
Posts: 4,308
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I am sorry I ment jcfla7
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Registered User
Joined: 10/7/2004
Posts: 2,181
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[quote jcfla7] "Tobydad...Just wandering why you call the 2/6 candle a bomb as it appears there were similar candles in the recent past?
Also, at some point any stock will seperate from upper BB, do you always view that as a sell signal on an up move?"
I've just found those candles to be more bearish.
re: separation from the upper bb, I sure move my stops much tighter. As I've said in other threads, I like having likelihood in my favor, I think the odds are less in my favor when the candlestick or bar doesn't have direct support.
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