Sunday, December 10, 2006


Note i've added a link to Movethemarkets which i feel is a very fine site.
It concentrates on "higher" priced stocks over $10 which i don't often talk about but love to follow/trade,exactly the ones Richard follows there, high volume intraday % movers, which i classify as "dayrangers".
Over the last few years i've found a few chart patterns that can move these stocks well.
One is the fastk 14<10 which works as well on these kind as it does with the under $20 stocks.
A great example is UAUA, the LAST time this stock ever hit fastk 14<10 was 8/11 at $22.33
It has NEVER traded that low since !
Also interesting is if you have been following along with my Muddy Zone ( MZ ) , that's the ema13/sma20 area, you'll see that UAUA after becoming a Squeeze/volume increase/price breakout on 9/12 ( white candle pierced by the UBB and contrary to many beliefs with an RSI2 in the 90's ) has bounced EVERY single time it has hit it !
So just on the UAUA chart we have 3 very powerful at times chart patterns that can move these higher priced stocks :
(1) Fast%k14 below 10
(2 ) MZ = ema13/sma20 on a pullback from the UBB
( 3 ) Sq/Vol/Breaks

There's another pattern i call the "Goal Post" but that'll have to wait for later. It's a beautiful day here and my dogs are ready to rock so it's off to the park. Have a great day,

1 comment:

Muddy said...

An angle i call the Goal Post pattern works well with these higher priced stocks.
Looking at the Fastk 14 below 10 indicator the pattern often resembles a goal post.
What you do is find when the last time your stock you are watching hits 90 or above on the fastk.
Then the stock must dip down to 20 or less on the fastk.
Then in 6 weeks or less if the stock hits 90 or greater on the fastk again it is a play when it holds GREEN
A few examples :
AMKR 10/17 99 fastk then the dip to 20 then back at 95 fastk 11/7

ATHR 8/16 96, the dip, then 92 9/12

BEAS 7/15 96, then dip, then 92 8/16

CIEN 6/30 100, then dip, then 98 8/10

CROX 8/3 97, then dip, then 95 9/12