http://www.stockrake.com

Alec writes:

Nice pick on CRDC, can you put the chart/ indicators/oscilators volume macd whatever you use, of it ,showing what take you a buyer?

Alec,

Thanks for the question. I use a variety of techniques for stock picks not all I’m comfortable sharing. However, this one was easy. I scan for stocks that already have a positive macd histogram and where price closed above 21dema. Keep those in a watchlist or just be aware of them.

I then look for a pullback or a test of its 21dema. Wait for a green daily close and buy. Sometimes I’ll buy early on that first green day because I’m confident that it will close there. I like to be early. The 30% run is not typical, but the type of arena I sometimes play in with the small caps do run like this.

The most important part, imo, of any stock trade is to know how the indexes are acting. I’m bullish on the indexes right now. If the indexes move up, stocks move up better and vice versa.

Another item that you can add to the 21dema play is adding a 10dema as well. Look at this popular solar runner, LDK. MACD histogram positive before the move. A huge pop over the 21dema, then 2 pull back days. However, it never tested its 21dema instead the 10dema caught up and it found support there. Some people would look at that as a bullish flag. Then today LDK had the really big move. If you are a fan of stops you can place your stop at the 21dema and let the winners ride – if it gets overbought, take profits.

The most important move of any trade is to act.

Related Posts