Boggo
Appreciate your explanation.
Any chance that you may share your scanning criteria ?
At the moment i am looking at the ASX one by one using Incredible Charts, but next week i am getting another software with some scanning ability.
I can also see that there is a learning curve in front of me.
I have to admit that i did entered stock about after 1/2 hr after opening and later on did see that if i waited another 1/2 hr i would save some money (drop down ).
So far i am using Moving Averages on 5 - 21 days and monitoring volume, but some times with penny stock there is not much volume movement.
Once again, appreciate
Hi Medici
First of all I agree with Mr J, a fact of life.
Next.
I am not an expert by any stretch of the imagination but I will attempt to explain an attitude that can work for you and does work for me.
First of all lets forget the indicators just for the moment.
If I gave you 20 different chart patterns to glance at which one would you pick and why would you pick that over the rest.
Do you know what you are looking for and what works, indicators are useless (dangerous) unless you know how to use them.
You are the tradesman, they are just tools that you use to assist you in making your job easier.
Have a closer look at my chart of RFE above, what do you notice about the pattern that has worked at the first two green arrows.
Next question, how do I find a pattern that works (for you) on individual stocks in a general overall up market.
This is where you may be able to use some indicators to help find
the pattern.
Lets say we place a couple of RSI's, a couple of MA's and a stochastic on the chart. Now adjust the parameters of those so that they all cross within a day or so or all on the the day of the bar that you want to have brought to your attention. In reality you are just looking for one bar but it does have to have the right "shape" and location.
In my case I never look at the indicators, I know what they are are the work that went into them but they only exist in the scan (and in a template that I can but never do open), I want to look at what they produce.
To eliminate false signals and chaff we may now need to associate some conditions with that bar, examples might be, volume on that bar is greater than the average over the last five days, the bar has a higher low and a higher high than the last bar and the close of the bar is above the mid point of the bar etc etc.
Find another similiar chart pattern, do these indicators and their settings work again.
If you find some settings that may work may now be able to build a scan from these indicators and their associated settings.
These are just suggestions but you need to have a "picture" of what you are looking for first, then find a method to locate a short list to eyeball and that I believe is how you will find want.
My Metastock scan generally only finds about a dozen "eyeball" candidates even on a strong up market day.
There are other factors that come into play such as a green arrow signal on CBA 4 days ago when it is approaching the possible end of a Wave 5 is ignored but lets not involve that aspect yet.
I have had two pints of Becks and the best part of a bottle of Coonawarra red over dinner in the local inn so I hope this all makes sense. I will probably read it tomorrow and think OMG, I should have gone to bed.
Hope this lot helps to shorten a long process.
Cheers Medici