Stock_Analyzer

I got a email asking how I find stocks so well, trust me its no walk in the park and its not 100% or I would be on the beach now instead of on my computer searching...but here was my reply.

[Name] there is a lot of info there bud, we will have to take this in steps....first thing I do when I look at ANY chart is look at the moving avgerage lines #1 Look to see if the stock is on top of the 20 and 50 MA lines and if so, next where is the 100 and 200 MA lines?? On top acting as RESISTANCE or on the bottom acting as SUPPORT (refer here http://www.stockhideout.com/showthread.php?t=861 and http://www.stockhideout.com/showthread.php?t=863)

Now I know where support is and resistance is, if any or all of the MA lines are BELOW my price, they act as support IF any or all are on TOP of the price they act as upcoming resistance.

Next I look at the previous runs highs...those highs will act as ADDITIONAL resistance added on to the MA lines if any that are on top of the current price and I usually find at least 2 or 3 prices that are currently higher then the current price of the stock, EVEN IF THAT MEANS GOING BACK 2 years!!! Some people really hold on to a stock lol and you have to know if they go back that far, they want to SELL at a even price and say PHEWWW lucky me!! So that will act as resistance!


Now you have to look at the other side of the coin. If the stock does fall, where is SUPPORT. Look for the nearest MA line below the price, because that is "typically" where the stock will fall to. Soooo "what if I buy in now" Where can the stock go before resistance and where could it fall for support? I ask myself that each time. Now, you want to buy the stock as close to support as possible **OR** right AFTER break out / resistance for a quick ride

Then, take a look at the chart again, is the stock in a uptrend or downtrend. If its a uptrend good, how long has it been riding? Is it a play like TNOG where it is a slow and steady consistant rider OR is it look like a POP / PUMP stock, (meaning no real previous pattern and all of a sudden 120% up one day) I prefer to get in stocks that look like they have something to their runs not just a SPIKE volue pop one day wonder (those are good to play but you have to know how to get in and out safely)

So if it is a bottom or downtrend play, where is bottom?? Where is the year low? 2 year low? Double bottom price, triple or quad bottom price? Look for all of these. Double bottom plays (triple and quad too) are nice entry spots and it is basically looking at the chart and seeing that oh yea, the stock recently hit a LOW of .0019 then ran to .0027 fell and is now hitting .0019 again (indicators are also low) ok hope on..this is a double bottom play.

Wow, so much to cover, now we look at indicators all are explained here http://www.stockhideout.com/forumdisplay.php?f=31

I look for stocks that are low RSI either 30 or looking to bounce off 50, williams %r is going near -80 or even red at -90 (even better sometimes) a MACD line that is looking to cross over the EMA or the 0 line (all explained in that section) Full stochs are low and rounding near the 20 line or just below and then icing on the cake...cci bottomed or slowly turning up AND STILL below the 0 line and DMI+ looking to cross DMI - line.

Then I make my "educated" decision, knowing AHEAD of time where support and resistance lay!

Is it easy? Heck no, is it 100% accurate, NOPE but it helps. Lastly, make sure the stock has some OK volume, if the stock is trading at .008 and only avgerages 200k volume, that means only like 1 buyer and remember you cant buy and or sell unless you have a opposite action to buy or sell into.

Hope this helps to "start scratching" the surface a little. We can all talk more as time goes on. Please replay!

SA