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Registered User
Joined: 1/28/2005
Posts: 6,049
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jcfla7 you asked:
"I tracked a number of stocks that I found from HNC's decision point approach and Diceman's screen.
Created a short list on 1/22 and here are some of the names:
PBH, CECO, BKI, ECGI, CGO, CEC, MX, BVF, BRKA, COCO
Have to say that a number of these have worked out pretty well. Didn't trade any of them for real but generally impressed with results.
Has anyone else looked at this approach?
The two items that I am unsure about is when and how you would take a loss? Maybe an arbitrary loss point of 5% and what would be a fair profit point.
Think the approach has some merit but needs some refinement too."
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One idea is to plot my indicator:
((ABS(XAVGC3-XAVGC8)+ABS(XAVGC5-XAVGC8)+ABS(XAVGC10-XAVGC8)+ABS(XAVGC12-XAVGC8)+ABS(XAVGC15-XAVGC8))/XAVGC8)*100
Click on it and choose "add indicator". Add a 3 period exponential moving average. This will allow you
to track the expansion/contraction of stock price. Indicator above mav=expansion, below=contraction.
We want to be in the trade during expansion and out when contraction happens.
(remember that ultimately this is tracking volatility)
During periods of expansion you want to try and "let your profits run".
During periods of contraction you want to tighten stops.
(maybe as tight as yesterdays low)
One of the advantages of plotting the indicator is it will adjust to the
timeframe plotted. So you can look at daily,2day,3day,weekly
and so on. To determine longer trends.
Obviously your trading timeframe will determine how you use this
information.
One last point. I'm not sure some of the above are valid picks. Due to the
flatness of the short-term moving averages. Notice on BKI they are
almost going through the longer term averages.
The ideal candidates would be where decision points are making
higher lows.
Realize also that expansion of the indicator will happen on both
up and down moves.
Thanks
diceman
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Registered User
Joined: 9/21/2005
Posts: 566
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Thanks Dice, good feedback.
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Registered User
Joined: 9/21/2005
Posts: 566
|
What do you think of these:
WAG
CCU
HPQ
CG
GENZ
HNZ
FNCA
and CLE from a few days ago.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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By "eyes only".
I don't like WAG, GENZ
(too flat, not enough up-trend)
The rest are OK.
CG looks to be the best.
CLE looks good but may be too late.
(range expansion started a few days ago)
The only thing that scares me. With good runs
and current market conditions. Some of these
like CG may experience range expansion to the
downside.
Thanks
diceman
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Registered User
Joined: 9/21/2005
Posts: 566
|
Hey Dice, good call on CG. Of course a good market helps but it's up 3% so far. A good 'paper' trade in my account.
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