This is topic Swing Technique in forum Swing Traders at Allstocks.com's Bulletin Board.


To visit this topic, use this URL:
http://www.allstocks.com/stockmessageboard/ubb/ultimatebb.php/ubb/get_topic/f/3/t/003709.html

Posted by fourseven on :
 
hi there.. no this post isn't about golf..

i've got a couple of questions for those technically-inclined among the swing traders here: how do you identify swings? how do you use them to your advantage?

i've meditated on the first question long enough to teach my computer how to do it.. i've also taught it some tricks like "find all stocks that were in a down-swing until reaching a 52-week low sometime in september"

the second question seems a bit harder; even if you can find stocks with any combination/sequence of swings, how do you make that work for you?

some of the stocks found by the query above are: NWY, TRXI, ZILG, PHUN, KFY, MAXY, NCOC

i'm trying to look for that kind of a chart where the price has made a bottom, tested it, and begins trending up again. somehow this seems like a potentially good setup.

comments, anyone?
 
Posted by Propertymanager on :
 
fourseven,

I like NWY. I think it would make the best buy at support $6 and also as it breaks above $7.

To answer your question, one of the ways I look for trades is to look at the stocks that have a daily volume surge. That's usually about 25 stocks per day. I look to see if they are near or at a compelling trendline and I also look for leading divergences in various technical indicators.

After I find a stock that meets my criteria, I either buy or short it and then place a tight stop (usually within 25 cents of the purchase price) so that I'm out of the trade if it goes against me. As the trade progresses and nears the other side of the channel, I place an order to sell (or buy to cover), usually about 6 cents above the channel.

I won't trade a stock that trades fewer than 100,000 shares per day (and more is better).

I also usually won't trade a company if it will announce earnings during my expected trade period.

Right now, I'm short SMTC, PRXI, MTZ, and long IDT. I'm hoping to be out of SMTC on Monday at $16.50. My target on PRXI is $11.50. The target on MTZ is $12.75 and my target on IDT is $9.00.

That's my plan.

Mike


That's what I do.
 
Posted by wdcisco on :
 
quote:
Originally posted by Propertymanager:
fourseven,

I like NWY. I think it would make the best buy at support $6 and also as it breaks above $7.

To answer your question, one of the ways I look for trades is to look at the stocks that have a daily volume surge. That's usually about 25 stocks per day. I look to see if they are near or at a compelling trendline and I also look for leading divergences in various technical indicators.

After I find a stock that meets my criteria, I either buy or short it and then place a tight stop (usually within 25 cents of the purchase price) so that I'm out of the trade if it goes against me. As the trade progresses and nears the other side of the channel, I place an order to sell (or buy to cover), usually about 6 cents above the channel.

I won't trade a stock that trades fewer than 100,000 shares per day (and more is better).

I also usually won't trade a company if it will announce earnings during my expected trade period.

Right now, I'm short SMTC, PRXI, MTZ, and long IDT. I'm hoping to be out of SMTC on Monday at $16.50. My target on PRXI is $11.50. The target on MTZ is $12.75 and my target on IDT is $9.00.

That's my plan.

Mike


That's what I do.

WELCOME! [Big Grin]
 
Posted by BooDog on :
 
check out stockselector.com

Scoping LSCC.
 
Posted by Propertymanager on :
 
Boodog,

Good Tip on LSCC. It looks like it's got support going all the way back to 2002 at $4.00 to $4.10

Mike
 
Posted by Machiavelli on :
 
quote:
Originally posted by Propertymanager:
fourseven,

I like NWY. I think it would make the best buy at support $6 and also as it breaks above $7.

To answer your question, one of the ways I look for trades is to look at the stocks that have a daily volume surge. That's usually about 25 stocks per day. I look to see if they are near or at a compelling trendline and I also look for leading divergences in various technical indicators.

After I find a stock that meets my criteria, I either buy or short it and then place a tight stop (usually within 25 cents of the purchase price) so that I'm out of the trade if it goes against me. As the trade progresses and nears the other side of the channel, I place an order to sell (or buy to cover), usually about 6 cents above the channel.

I won't trade a stock that trades fewer than 100,000 shares per day (and more is better).

I also usually won't trade a company if it will announce earnings during my expected trade period.

Right now, I'm short SMTC, PRXI, MTZ, and long IDT. I'm hoping to be out of SMTC on Monday at $16.50. My target on PRXI is $11.50. The target on MTZ is $12.75 and my target on IDT is $9.00.

That's my plan.

Mike


That's what I do.

Sounds like you read Toni Turner's books... Anyways I wanted to add that I won't trade a stock unless it has a average of 300,000 in volume...
 
Posted by R1 Man on :
 
quote:
Originally posted by fourseven:
hi there.. no this post isn't about golf..

i've got a couple of questions for those technically-inclined among the swing traders here: how do you identify swings? how do you use them to your advantage?

i've meditated on the first question long enough to teach my computer how to do it.. i've also taught it some tricks like "find all stocks that were in a down-swing until reaching a 52-week low sometime in september"

the second question seems a bit harder; even if you can find stocks with any combination/sequence of swings, how do you make that work for you?

some of the stocks found by the query above are: NWY, TRXI, ZILG, PHUN, KFY, MAXY, NCOC

i'm trying to look for that kind of a chart where the price has made a bottom, tested it, and begins trending up again. somehow this seems like a potentially good setup.

comments, anyone?

First off....you missed the boat on NCOC.

I use several methods. I do a scan of stocks that drop by % and compare a few factors. 52Low, Volume...then I look for patterns in the charts. Like I found for instance....ONT. If you go back 5 years and look at it, you will notice it drops down in December and peaks up in the spring. There are lots of stocks out there like this one. Another technique is, look at stocks that tend to hover around a price. Stable stocks. I was bouncing UMC...I would buy at $3.00 and sell at $3.25. Now its lots higher but to find stocks that hover, then you can guess and expect what they will do from past practice and ride the swings very easy. For a swing you have to set limits as to what % you want to make. For a stock to swing....its a risk because your making a judgement as to what it will do. So be modest with your %. Get in and get out. Some stocks you can sit on and ride out. I flipped "F" Ford for a while....buy at $6.80 and sell at $7.75. I think you can still flip it but the problem with that stock is its contract time. If it follows the GM pattern it will rocket up in 1 day....its around $8.80 now....if they come up with a tenetative agreement, it may hit as high as $13.00. If they ratify a contract....could go even higher...maybe as high as $15-16. You should make a account for fun and watch stocks. If you go to my trend you will see I have a ton of stocks to moniter which I don't know when the last time I did that was but when you see the % and $ change you begin learning trends. You may find stocks that are low each month and high in the middle each month. I use a lot of common sense when I make decisions. I don't use all those specialized graphs like others but I'm usually on the money when I make calls....go look for yourself.

I'll get back to being a regular contributer again soon.

Good luck and hope I helped.
 
Posted by BooDog on :
 
Welcome back R1 Man
 
Posted by terence on :
 
Only i see a fail on this tecnique.
and here it is,you probably win 20 times but
when you fail once,only once all your gains in other banished.a stock break a support and go
down a hell.
 
Posted by T e x on :
 
quote:
Originally posted by terence:
Only i see a fail on this tecnique.
and here it is,you probably win 20 times but
when you fail once,only once all your gains in other banished.a stock break a support and go
down a hell.

I realize English is not your native tongue, Terence, but that just doesn't make sense...

no decent trader is going to risk a position that wipes out 20 good trades...
 
Posted by Ace of Spades on :
 
quote:
Originally posted by T e x:
quote:
Originally posted by terence:
Only i see a fail on this tecnique.
and here it is,you probably win 20 times but
when you fail once,only once all your gains in other banished.a stock break a support and go
down a hell.

I realize English is not your native tongue, Terence, but that just doesn't make sense...

no decent trader is going to risk a position that wipes out 20 good trades...

That was funny on sooo many levels....LoL [Smile]
 
Posted by deathtoradio on :
 
I agree with the hover method R1. It works great for me. I have a question though. Someone brought up not buying a stock when they know the companies financials are coming out soon. I also agree with this, but I'm not sure how to find out when they are coming out. Where can you find that information?
 
Posted by $tock Weazel on :
 
quote:
Originally posted by terence:
Only i see a fail on this tecnique.
and here it is,you probably win 20 times but
when you fail once,only once all your gains in other banished.a stock break a support and go
down a hell.

"a stock break a support and go
down a hell."


That....was funny. [Razz] [Big Grin] [Were Up] [Big Grin]
 
Posted by Jo4321 on :
 
Deathtoradio,

You can look this up on YahooFinance.

http://biz.yahoo.com/research/earncal/20080128.html
 
Posted by Moughrain on :
 
Thanks Jo4321 for mentioning Yahoo Finance..Checked it out and among today's Bullish stocks was mentioned ZVUE, up 9.52% today closing at $0.92, up from $0.84...

Yahoo site http://finance.yahoo.com/q?s=ZVUE

So i checked the reason for the Bullish call and found that today ZVUE had a Business Call Transcript where they reported good results..
http://seekingalpha.com/article/69926-zvue-corporation-business-update-call-tran script?source=yahoo

Not recommending this, just calling attention to the stock..The transcript had some very impressive numbers- ZVUE is a humor and entertainment website and has some good stats comparable to the daily number of hits that Yahoo Video and also MSN Entertainment get..Page 2 of the Transcript sets forth the daily and monthly numbers...
 


© 1997 - 2013 Allstocks.com. All rights reserved.

Powered by Infopop Corporation
UBB.classic™ 6.7.2