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Originally Posted by cruz Again thanks MP. I will do just that. One stock I am watching is ONT. Though, I have a lot to stiff through to find the best possible scenario stock to watch. Stockfetcher RSIWLR scan pulled up 190 or so based on 1 - 5 pps and avg vol >= 300000.
Your comments on ONT wouold be greatly appreciated. Not sure if ONT is the best example to follow in the next week or so. |
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hey
ONT appears to be a very nice little stock, being in an LRC uptrend (would you want to buy any other kind of stock ?) and appearing to have bottomed at the moment, ALTHOUGH i would watch closely as it has bottomed on a moving average, and not its trend line support or the lower LRC and that is worth watching ! Pay some attention to the fact that the Accum/Dist line DID NOT follow the bottom, pointing to the fact that MANY thraders are still holding shares, waiting for the stock to hit yet further highs --- this is good and bad, as there is a lot of pressure on the stock to rise again, BUT there are also a lot of shares waiting to be sold at the next high. (which translates into when the stock peaks, get out quickly cause a lot of people should be leaving)
NOW, if they dont sell into the next rally, that shows a belief that the stock will rise yet more. at that time, i would sell at the top of the rally and then buy back at the low, assuming one wants to get the most out of this one little stock and not go on to others !
its just another way of trading, and works VERY well, narrowing down the number of stocks you actively trade and assuring you nice profit.
also be aware that not all stocks immediately bounce up after hitting bottom -=-- most consolidate for a while, waiting for the next leg up, but all the indicators having hit bottom at a nice angle shows a good probability that this one will move soon, so pay attention to the timeseries lines each day!
the ascending LRC gives additional downside protection, as the stock normally should not drop lower (unless theres really bad news) so an early entry is given the most insurance possible, although i dont like to get in early myself, preferring to see some sign that the stock is getting ready to move --- usually provided by the timeseries lower numbers crossing up over the higher number ones !
for a change, take ONT to stockfetcher and do a "pattern match" and see what comes up, or do a scan for "uptrending LRC patterns" in your price range and check the relatively few that it produces with the RSIWLR. if the stock is at the top of its cycle, write it down and check again in a few days --- let the stock come to you instead of the other way around !
lots of ways to trade, and being methodical and waiting is one i enjoy a lot !
mp