Simon's (and everyone's) Breakout Thread II - Page 190

Quote:

Originally Posted by x11joex11 

What is the resistance point now for AMEL in your opinion simon?

Mid to upper .40s has some resistance from the chart, then the Nov peak was in the upper .50s.

This one isn't a typical breakout setup and it's very risky at this point, but HLXW has a shot to do some damage here. Picked up a few .0008s and some .0009s, hoping to hit a bit of a lotto on it.

Quote:

Originally Posted by x11joex11 

Curious simon where you think the stock HLXW might climb to? Also curious your reasoning behind picking it.  I noticed it doesn't have much history, is that why it's kind of a lotto play but could be good?

There's more than enough price history for me, and the reason I took a stab at it is because I think the price action is starting to get fairly bullish. On the 60 min you can see a bit of what I'm talking about, with the price now trading above the 60 min 50 and 200 MAs, and a break of .001 could get it moving.

ELTP could start to move on a break of .07. It's been knocking at resistance today, though I could see it possibly needing more consolidation before it busts through.

Quote:

Originally Posted by RebelT09 

Looks like HLXW is taking a small break after the big volume day yesterday. I'm interested in picking up a couple shares here.

Yeah, if you look at that 60 min chart I posted above, it's a perfect place for some low volume consolidation. I'm going to wait and see if it can break .001 before I add.

HLXW's chart is consolidating very nicely under that key .001 resistance but above the new .0008 support, and I just saw this:

http://www.ecofriendnews.com/environmental_article10053.html

It wasn't released by the company, seems to be a totally legit source, and is whoring out the stock itself (no mention of the ticker). I can see this as being quite the catalyst for this setup, but we'll see tomorrow and next week.

Quote:

Originally Posted by x11joex11 

Say Simon, what are the settings for your stock screener? Do you have a preferred stock screener you choose?

 

The goal of my screener is to find a stock who's relative strength index (RSI) is crossing 30, and where the Moving Average Convergence Divergence Histogram (MACD Histogram) is moving from a negative pattern toward the positive (indicating momentum growing).  Do you have any other recommendations to improve this screener?

 

Currently what I use as the settings for TDAmeritrade's stock screener is below:

 

MACD Histogram

I use Equity Feed and simply look at any stock that had more than a handful of trades and a decent amount of $ volume. When I scan, I'd rather just view way too many charts than not enough, so I just let my eye do the deciphering. I have no recommendations as to what to add to your screener because I don't even like getting as specific as you already have gotten, unless maybe if I'm going to run 20 different scans, in which case it makes more sense to just run a simple one and just look at as many as possible in one swoop.

RSI crossing above 30: Why? HLXW, look at where it's RSI was when it broke out. CPRKQ, APCVZ, AMEL, APCX, EYSM, VASO I don't think you'd have caught one of those with that criteria alone being included in your scan. I think most setups I play have an RSI above 50 and sometimes at or above 70, but there are so many different things I may see in RSI that I'd like, that there's no way I could write some criteria and scan for it. My brain just knows what things to look for, so give me a quick glance of the chart and I'll be able to tell if I like it or not.

My advice, which may or may not work for others, is this: Look at as many charts as you can every single day, and study all the different details that take place before, during, and after a stock makes a strong move. Sometimes you'll notice one thing, sometimes something else, but over time you'll notice certain similarities. The longer you do this, the easier it will be for your brain to quickly spot something that stands out to you and can clue you into a possible setup. Then it's a matter of finding a program that allows you to quickly view as many charts in a short amount of time as possible. With EquityFeed, I can click on a ticker in a filter result list, the chart immediately pops up on my second monitor, and within a second or two, I process it in my head. Click, view, click, view, etc. It's been years since I actually have used very specific scan criteria, what I've always done is just focus on quantity, and in a list of a few hundred, maybe I'll find a handful of stocks to watch.

Just my $.02.

Quote:

Originally Posted by x11joex11 
  You are not always correct on the stock picks, but you have a darned good record =P, and are very good at putting the odds in your favor.

 

Thanks for the kind words and glad to help. And as for this comment, trading will never be about having a perfect track record, but it has everything to do with putting the odds in your favor. Having a high percentage of winners is obviously nice, but it's also about risk to reward. HLXW had a trigger at .001, because that's the key resistance I saw, so if it couldn't break that, then you get out for 1 or 2 ticks, worst case maybe 3. Since it's already hit a net gain of 6 ticks and possibly has more in it, that's a very favorable risk to reward. So in cases like that even a 50/50 track record should get you a nice consistent return coming in. Good luck.

Quote:

Originally Posted by x11joex11 

I think when I wrote that it came out wrong, but I totally agree with you.  Of course it's impossible to be perfect with trading every time.  I did notice that when your plays don't work out it's usually a very minor loss compared to the gains you can make which is a smart way to play.  Minimize your losses and capitalize on your gains =).

 

What I am curious to is what technical factors let you knew that HLXW had a trigger at .001? (Was it just that, resistance was at that level? [and maybe growing volume], or was it more to it then that?)

Here's the write up I did when I added it to my watchlist at FPS.

http://flippingpennystocks.com/?p=1522

Let me know if you have more questions after reading that.