| Beyond Stock Charts And Into Secret Trading Algorithms |
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| Written by Sam Nielson |
| Monday, 31 August 2009 15:42 |
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I'm going to do something that is unheard of in stock chart and market analysis. I'm going to tell you exactly what I look for in a stock and how I find picks for one of the most popular stock blogs on the Internet.
I'm going to do something that is unheard of in stock chart and market analysis. I'm going to tell you exactly what I look for in a stock and how I find picks for one of the most popular stock blogs on the Internet. This secret algorithm I'm about to reveal beats the pants off just using technical analysis to read stock charts. I got this secret algorithm from the crowd of the world's best traders that I run with. This algorithm has the potential of putting you in stocks that can return 100%, 200% even 1,000% and more! This crazy simple formula can make any computer seem to actually be able to read a stock chart and predict future price action better than a human. Many years ago, software used statistics and models for processing. This secret algorithm goes way beyond that. It's like having 100 stock analysts and day traders inside your computer giving you recommendations! I have used this to make a lot of money and now I'm going to tell you exactly what the algorithm is. I'm giving you this for free because I'm hoping you make a lot of money from this and become a regular reader of my articles. I think that's fair. We need to examine the trend. Get the 10 day MA, the 20 day MA, and the 50 day MA. The formula is: 10 day MA greater than 20 day MA greater than 50 day MA. So the 10 day MA should be above the 20 day MA. The 20 day MA should be above the 50 day MA. If this criteria is met, move on to the next step. If not, toss out the stock and start over. The next step in this secret formula is to examine the last hour of trading on the previous day. If it has closed above the 5 hour MA, move to the next step. It is hasn't toss the stock out and pick a better one. Now in this next step, we need to see if the stock is trading at its 3 day high. If it is, read the next step below. If not, you know how this goes, get rid of the stock and find another one and start all over again. Now we need to determine if the stock is above the 20 day MA. If it is, keep reading. The next component in this formula is if the stock has hit a 3 week high in the last week (the previous full week of trading). If not, reject the stock and start over. In this step we need to determine if the stock traded at a 3 month high during the previous month of trading. If it has, fantastic! If not, lose the stock and start over again with a new stock. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Before you waste the time doing this manually, there is an Artificial Intelligence stock screener that will scan over 25,000 stocks in 3 seconds. For more information go to Lance Jepsen's blog at stock chart |