mp6140

I now use the "MFI" indicator on all my charts, with one chart being a 10 minute chart and the other a 3 min chart. the 10 min chart is your "trend" chart, and if the MACD is GREEN, then you have a good stock, which the MFI will confirm by being above 75 (although any amount above 50 is bullish -- BUT the higher the better !)

in the above case, which is usually the first day of a stocks move up, the Momentum will be strong, the MACD will be green and the other indicator lines will be UPTRENDING. In this case, let your profits ride unless you see the Momentum line or the TRIX dive below its signal line.

in the case of the MACD showing VERY RED on the 10 min chart, with the MOMENTUM signal line ABOVE the MOMO line (and the MFI below 50), you are being told that the stock is weak and you would be trading on the wrong side of the market if you decided to go long. one can flip the stock based on the movement of the MACD on the 3 minute chart, or go short if its marginable, but I wouldnt enter a long position untill green is showing.

enjoy and trade for the trade --- the money will come but shouldnt be your only desire !

mp

__________________
Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !

As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence -- BUT I KNOW WHERE THEY HID THE KEY !!

rverheyen

I'm looking at the XKEM 3min/10min 2 day charts for this.

We all or looking for that 4the bottom to pick so we can have a decent ride up.

I noticed a few things at each reversal:

- The candles are going from below the EMA's to above
- The MOMENTUM signal line moves ABOVE the MOMO line
- MACD turns green and signal line crosses the MACD line
- W%R, RSI & MFI are turning up from the bottom

But how do you wait for that last bottom (the one we need)?

As I see it now the first two bottoms are eleminated because on the 10min chart the MOMO is still going down so we do buy at these times.

But what with the third (fake) bottom?

MOMO is turning up and all other indicators are screaming buy buy buy...

And yes, the rise after the third bottom is 10%, so for scallping this would be very good. But that's not what I'm looking for, I'm trying to day/swingtrade.

So how do I wait for that fourth bottom?

Do I wait for MFI to cross 50 or 75? But then I'll miss a big part of the move.
I noticed that W%R and RSI are flatlining at 0 for some time. And that didn't happen at the third bottom.

Any comments?

Oh, and what are the MFI and MACD settings you use? I used the default settings now but are they any good?

mp6140

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may i advise quitting your job, as its interfering with your trading ?

ok, being a bit more practical

mikeys method uses the MACD indicator on the longer term intraday chart as a TREND and STRENGTH indicator, along with the MFI that i added recently.

first, of course, you look for the VALCHANGE% indicator to show a high percentage, then you look to the thumbnail charts to see what the stock has done during the day. then use the prophet net chart to see how many days the stock has been moving (we love day one and day 2 and fear day 3 (usually))

when you find your first or second day runner, look at the RANGE % and GAP% readings on the watch list. NORMALLY, you do not want a stock that has gapped, as that usually is followed by a selloff or flat line for the rest of the day. since you return after 12 (which is when these stocks will usually start to sell) your job is actually not that hard. With the RANGE%, you do not want to buy a stock (usually) that is at 100%, or obvious reasons ! For this, wait for the stock to dip (macd goes red) and buy when the TRIX or the FISHER crosses to the upside on the short range chart and confirmed by what appears to be happening on the longer term chart (3 minute and 10 minute)

as an aside, i use a slightly different chart type as my short term chart than a 3 minute, but its still in development and designed ONLY for flipping the dips and rises of a stock --- it will get you in DEEP trouble, if you choose to buy a longer term (day or two) stock, based on what its saying.

so thats basically it --- you want a stock on day one or day two, with MACD BIG and GREEN and the MOMENTUM ind moving up at a very nice angle, with the TRIX and the FISHER moving up and above their signal lines, and the MFI indicator showing into the 90's (above 50 is bullish, but the higher the stronger is the bullishness, obviously !)

on day two, and especially on friday, the daytraders bail the stock around 3:45 to 3:50 and the mms take the stock DOWN, to grab the shares and lower the price of the stock for mondays anticipated gap, which provides an excellent entry position for buying a gapper, IF YOU CAN MOVE AND BUY VERY VERY FAST !

there is more, but if you follow the directions and WATCH a few stocks over a period of time before considering real cash positions, you will see how easy it is to judge what is happening and when to enter, especially if you are also aware of the "times" the mms move a stock up or down (that info is on the stockhideout site, and i "borrowed" and posted it very recently)

mp

__________________
Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !

As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence -- BUT I KNOW WHERE THEY HID THE KEY !!

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

mp6140

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well, almost a year since you posted this and i finally saw it.

understand that the LRC shows the "historical" support and resistance for the TIME PERIOD YOU ARE LOOKING AT. when looking at a one year chart, the lrc might be ina downtrend, but within that downtrend will be rallies and up and down moves by the stock. going to a shorter time period will show these cycles up closer, so you might have a short term uptrend CONTAINED within a major downtrend, or the other way around !

in other words, a divergence is not as important as WHERE the pps is on the long term chart.

i always look at the longer term first, to see if the stock is approaching the top LRC (which means either a reversal or a breakout), and then move in closer for more detail and to see just what the stock is doing short term. The long term LRC may show the stock is declining at the moment, which will be shown as a downtrend in the short term LRC, but only reflects what the stock has done IN THE SHORT TERM !

If the short term chart shows me that the stock can move up WITHIN ITS SHORT TERM CHANNEL, and the long term chart shows me room to go before the stock will hit its TOP LRC, then i consider the stock as a strong possibility for a rally, at the least !

hope that helps

mp

getgreen

Hello Mike
I have been using Medved QT for a couple of years and I would like to add your method.

What do I have to do ?

TIA

getgreen

mp6140

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Just try this

http://www.stockhideout.com/uploads/Freebie.pdf

gl

mp

getgreen

M ike
Appreciate your help but that link does not open up for me
gg

mp6140

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youre blocking popups or something, so try pasting the link cause works for me !

luck

mp