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[QUOTE]Originally posted by Chart walker: [QB] [QUOTE]Originally posted by littleman: [qb] chart walker, i own halliburton as a value play. should i have bought a just out of the money call instead. thanks [/qb][/QUOTE]Only you can answer your question, it's a matter of probability. As you walk away from the price the odds start to go against you, but that is why I play "extreme" tops and bottoms and not the middle's. I, myself, don't mind going slightly out of the money for a little discount on the price when I see a turning point in a WEEKLY chart. How to do that. MARK indicator HIGH and LOWS, to find your target buy in and out points. For instance look at a gallery page of HAL... http://stockcharts.com/charts/gallery.html?hal If you are doing short plays notice that when the PPO indicator on the DAILY chart hits certain highs or lows with that indicator that they are excellent times to buy in. Like the start of Oct. when it was -4, and right around January 16th it was -3. For longer plays use a Weekly chart, but ALWAYS LOOK AT THE WEEKLY CHART TO FIND THE MAIN TREND, NEVER GO AGAINST THE TREND. Pull up a 1 or 2 year daily chart and backtest your thinking now and see how many times when this indicator was that low (-3 or below) was it a good time to buy in? Chances are it will be. So this stock has just "taught YOU" how to play it when buying a CALL. The same goes for PUTS. Mark which HIGH point on a indicator is "extreme" and then wait for it ~ Pick several stocks and let "the stock" tell YOU WHAT and WHEN to buy it... Some indicators I use for finding extreme turn points are: Full Stochastic MACD RSI PPO Again, everything you need to know about the stock will come to light in BACKTESTING these indicators and seeing which one/s give the best "read." I know it may sound like alot, but once you walk through this system you'll use it everytime because just like a book you'll KNOW where you are, beginning, middle or end... HAL looks like a nice stock! Nice "predictable" swings up and down, this is also what you want to look for, NOT one that isn't predictable.... -that's my .02 cents, hope it helps bud :D Later Littleman! Chart ~ [/QB][/QUOTE]
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