hello
morton,I posted an
education piece about this a while back, do a blog
search.
But basically it's not a clear set set answer, Steve and I look
for a variety of things when buying the stocks early.
First off we don't just buy early willy nilly; we look for
support levels on the daily chart, is there a MA on the daily chart
that is acting as support like the 20 or 50 day? Also is
there an uptrend line (like there was on SKS). We look to buy near
support to have a tight stop.
Volume patterns are also important, if a stock pulled back off
resistance on light volume to a support, that is often golden, if
it sold off on heavy volume we would pass.
We also zoom down to 15 and 60 min charts and if we see things
like positive divergence or bull flag patterns, we can use that to
buy early.
hello morton,I posted an education piece
SKS
Posted by matt on 11th of Feb 2011 at 11:20 am
hello morton,I posted an education piece about this a while back, do a blog search.
But basically it's not a clear set set answer, Steve and I look for a variety of things when buying the stocks early.
First off we don't just buy early willy nilly; we look for support levels on the daily chart, is there a MA on the daily chart that is acting as support like the 20 or 50 day? Also is there an uptrend line (like there was on SKS). We look to buy near support to have a tight stop.
Volume patterns are also important, if a stock pulled back off resistance on light volume to a support, that is often golden, if it sold off on heavy volume we would pass.
We also zoom down to 15 and 60 min charts and if we see things like positive divergence or bull flag patterns, we can use that to buy early.
thanks I will search for
Posted by morton13 on 11th of Feb 2011 at 11:32 am
thanks I will search for the educational piece. I purchased LORL early and its on the verge of a breakout.