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Registered User
Joined: 11/1/2004
Posts: 8
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If you go into TC2000 and look at the stock AGEN, you will see the following note:
6/9/2003 Please see comment on this stock in today's Worden Report.
-DW
This might be convenient for people on the day it occurred... however, it's very difficult for a person to review the information at a later date (I am a new TC2000 customer and wouldn't have any idea how to go back and see what occurred on 6/9/2003). Perhaps the data could be put in both places so that we wouldn't have to log onto the internet to find '...the rest of the story'. It would be available for review. I, for example, connect my laptop at work... download the updates... and review them at home. I would have no way of accessing the internet later to find out what the rest of the story was.
Also, would it be possible to get some more comments from the Worden's within TC2000. I notice only a few additional comments per day. I like to try to learn from their notes, but the notes are so few and far between, it's hard to learn from. It would be great if they could follow up on their notes a bit more too.
Thanks,
Dustin
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Administration
Joined: 9/30/2004
Posts: 9,187
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Thanks for the suggestion hayedid.
I think the reason DW posted the reference to the Worden Report is because he talks about 4 different stocks in response to a question asked by a customer. Instead of pasting the entire report into 5 separate notes, he just put a reference to the report on the stocks he covered.
Below is the text from the Worden Report on 06/09/2003 and the URL for the Worden Report archive.
I'll pass on your comments to Peter and Don Worden.
StockGuy
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https://orders.worden.com/knowledgebase/
The Worden Report (Monday, June 9, 2003)
Gauging Overbought
To Worden:
Is there a way to ascertain if the stock is in an oversold position, ie:DOX as of today or NGAS, as of the 23rd of last month?
David
It's actually quite subjective, a little like determining whether you've been in the sun too long. Overbought means that price is rising at an unsustainable pace. My favorite way of gauging overbought is when a stock rises above an ascending envelope channel. Sometimes you have to customize the channel to a specific stock. I keep my channel width set at one standard deviation above and below a 50-bar moving average (enter 50 for period and 10 for width). But I often have to change it when it obviously doesn't fit the stock in question. Normally, it should skim the tops and bottoms of swings. When it departs from the normal by rising above or below the channel is when you have an overbought or oversold condition. But remember, for overbought it must rise above an ascending channel. For oversold, it must drop below a descending channel. (Rising above a descending channel is often an early stage of an upside reversal. Dropping below a rising channel often signals the early stages of a downside reversal.
For an example of an overbought stock, check MERQ. For parameters use 50 and 10. Make it a daily zoom 3. Notice that in January it rose above the rising channel, meaning it was overbought. Notice that it corrected down into and then all the way to the bottom of the channel. It is now above the rising channel again. AGEN is another example of an overbought stock using what I consider my default parameters.
On your DOX, I reset the channel width to 5 (a half of one SD). It is a little bit overbought, but not much. On your NGAS, I reset the channel width to 20 (two standard deviations). It's still overbought. As a guess, by the channel rising while the price drops, it may be back in the channel at about 3. It's a powerful stock, and I don't think you'll get it much lower than that. DW
Check Those Envelopes
The market now seems serious about working off what has become a sea of overbought conditions. I suggest you whip out some envelopes and use them the way I outlined above. Check not only how the patterns look now but how each stock responded to similar patterns historically. -DW
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Registered User
Joined: 11/1/2004
Posts: 8
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Thank you for the reply. In summary, I'm just suggesting that it would be much easier to be able to reference this information offline when using TC2000.
Thank you for the great responses. Your thoroughness and care in answering questions is a great assett to TC2000!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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It is -ALWAYS- our pleasure!
- Craig
Here to Help!
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