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Originally Posted by scholes MP,
Thanks for the freebie file....great explanation in layman terms...one question for you:
If you have a stock that has a uptrending 1 year LRC and the 6 mth and 3 mth are downtrending (conflicting), which timeframe do you view as being more important?
Basically, what are your thoughts when you see this?
Thanks
scholes |
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hey,
short answer is the 3 month for daytrading --- long enough history to get an idea of what the stock is doing, short enough to be meaningful ! now the one year can be in an uptrend, while the 3 month is a downtrend simply because the stock has been selling off the past three months but its major trend has been UP ~ GO WITH THE 3 MONTH !
BUT -- always check the one year to get an idea of how the stock trades --- you can pick up a few clues as to length of rally (is it usually 2 days with a selloff or does the stock do more or less ?)
for investing, you want the longest terms possible so as to identify longer range trend
regards
mp