mp6140

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LOL -- you have re-discovered an age old truth --- not everything is perfect!

you have also discovered that mikeys was originally designed to determine good stocks from bad ones a few seconds after the opening bell, and to help you determine WHAT stock to trade that day, and although not intended originally as a method of determining bottom reversals, with a little understanding and modification, it works well for that -- as well as for scalping or intraday flips !

Two things stand out from what i see in your charts -- First, I would venture that the VALCH% was no where near the front runners like CNES, PTSC, GWGO, CRGO or others, and the VALCH% is the primary tool for locating a running stock in mikeys. and Second, and its not mentioned in my instructions because its a totally different manner of trading, take a look at a 15 minute chart of XKEM and you will see that all the indicators you mention were either flat line or UNDER their signal lines until the reversal period at approx 2 PM, including the pps which was UNDER the 20 SMA until the 2 oclock reversal. Even the MACD, the most sensitive of indicators, was RED and never broke into green until the 2 oclock reversal. and notice that the NAZ, the TICK and the TRIN did not go positive until 2 oclock also !

a third point, and one that could easily fool most any trader, was that the stock had traded in this manner (short move up in the morning, and then a fall off at the 9:50 reversal period and then a move up at various times of the day) all week long ! a standard rule, when going after the type of play you were looking for (reversal off the bottom) is to see what the stock does at the 9:50 reversal. if,after the reversal, the stock exceeds its high, one buys and goes with the stock. in this case, the stock never recovered from its dip until 2 pm or so. Now, it was also difficult in the morning because the stock went up and over its SMA20, but dipped shortly after heading for its true bottom. "Normally" for this type of play, one already knows in advance what the support point is, so if the stock reverses above that point, then you must decide if its a false reversal (reversal 3) or not. Being friday, one should also remember that for a long while now, stocks start moving late in the day, doing nothing pretty much throughout the rest of the day (guess everyone is out cashing their checks and having a 2 martini lunch --- then they come back and go for the jugular before going home)

now, i presently use TWO MACD's --- one at 10,30,10 and the other at 3,6,8.
I use the MFI as a bullish/bearish indicator and not for crossovers, as it is too slow for that. If a stock is moving up, and the MFI reads in the 90's or higher, you have a VERY strong moving stock and should not fear entering. XKEM, at the point you mention, was showing a MFI reading of under 50, showing bearishness and although rising (and therefore mixing signals) it never really broke 50 untill after the 2 oclock reversal.

i also use the ECO at 6,9,5 as it is close to second to the movement of the MACD and where the macd shows good/bad market by color, the ECO shows it by direction of movement. I use MOMENTUM at 25,40 now, but i also use the registered version so no longer need to have the different momentum numbers throughout the day, and if you notice on the 15 minute chart, the momo indicator was UNDER its signal line until the 2 oclock reversal.

and while i normally do not pay much attention to level 2 for a normal day hold, I do for scalps and for bottom reversals, where i watch very closely for clues as to what the mms are doing. by constant watching, one develops a feel for what is happening, making the job of locating reversals much easier, not to forget scalping requires a very close watch over what is happening ! With XKEM, at approx 9:55 (actually slightly earlier) the mms were already giving signals that they were taking the stock down, as shown by the stock trading alternately between the bid and ask -- a certain sign of weakness !

my original instructions called for using a two day chart on the left chart at the beginning of the trading day, so as to determine if TODAY, the stock exceeded YESTERDAYS close and todays pivot point. once that is determined there is no need of a 2 day chart, and NEVER a need for it on the right side chart.

and of course, an old standbuy -- VOLUME PLUS, which was red until the 2 oclock reversal, at which time while still red, it started increasing over its ema 20 just before it went green.

But all of this is beyond the scope of my original instructions, which were designed, once again, to enable newbs to easily find good strong stocks to play from early in the day. What you are using it for it can easily handle, as well as intraday flipping or "scalping", but some different techniques need to be applied ----- and i think you just got a look at some of them !

I am in constant contact with jerry medved and soon, very soon there should be an alert system designed for "indicator" crosses which should be simply wonderful, especially for doing what you wanted to do.

I cant wait !

mp