Trade SMART

SMART_Trader · #41 6th November 2007, 11:14 PM

Have a look at these chart patterns

Symmetrical Triangle(Bullish)

Ascending Triangle

Rising Wedges (Bullish)

Bull flags & pennents

Rectangles (Bullish)

These patterns can be traded very profitably because they are well aligned with the central tendency of the market.SMART is also based on the same logical concept .Buying long term momentum stocks on a new breakout after a short term weakness or consolidation. Why should one worry about the exact shape of the consolidation ?

SMART_Trader · #42 7th November 2007, 12:47 AM

A cup-and-handle pattern resembles the shape of a tea cup on a chart. This is a bullish continuation pattern where the upward trend has paused, and traded down, but will continue in an upward direction upon the completion of the pattern.
Breakout of a long term momentum stock after a minor consolidation or weakness is the basic concept.

SMART_Trader · #43 7th November 2007, 07:57 PM

Breakouts 07/11/2007

here is the Watch list for 08/11/2007

SMART_Trader · #44 8th November 2007, 06:22 PM

Only one breakout for 08/11/2007

Here is the watch list for tomorrow

SMART_Trader · #45 9th November 2007, 08:21 PM

DIWALI GREETINGS and BEST WISHES for a PROFITABLE NEW YEAR!

SMART_Trader · #46 9th November 2007, 09:03 PM

Only two breakouts today.
Watch List will be posted later.

SMART_Trader · #47 10th November 2007, 08:39 PM

Here is the Holy Grail of Linda Rasche

Find a strong momentum stock
Look for minor weakness.
Buy breakout
Trail with a stop.
Basic concept behind SMART is same.

marcus · #48 10th November 2007, 09:58 PM

Dear Smart Trader,

Thank you for your analysis, I would like to ask you on 6th nov why did you consider CENTURYTEX as a possible buy candidate?

Your criteria says "breakout after consolidation" and "10 to 20 day weakness or consolidation" CENTURYTEX was clearly in an uptrend and there was no consolidation at all.

Also you have chosen a 4% breakout in price as well as a 4% breakout in volume, can you tell us how you arrived at these figures? Have you tweaked them with experience or were they arbitarily chosen?

SMART_Trader · #49 10th November 2007, 10:52 PM

There are no hard and fast rules as such. Gain of less than 10% for a high momentum stock during a month or fortnight is considered as weakness. For Century fortnightly gain was 2%. But 20 trading day weakness is preferred.

In runaway markets even 5 day weakness is difficult to find. Many consider 5% gain on a single day as significant. Not necessary to have 4% breakout on volume , but volume should be higher on the breakout day.

We are trading the basic concept. These are all methods which you can tweak. Methods depends on the skill and knowledge of the trader and the results will vary. You can make money if your trading concept is well aligned with the central tendencies of the market.

Think about the Internal combustion engine of motor cars. Basic concept of cylinder,piston and flywheel remains the same for the last 100 years, but efficiency depends on the skill of manufacturer .

Look at the holy grail system of Linda. She is using ADX ,MA etc,but the concept is same. Trade a Concept.

SMART_Trader · #50 10th November 2007, 11:16 PM

Quote:

Trading successfully is a matter of taking advantage of chance. To take advantage of the law of large numbers, you must make many trades, and do so consistently. Ideally, your objective is to try to put on a trade with discipline, reacting effortlessly over and over again. By chance, your plan may work, or equally by chance, it may not work. If you use a sound, reliable trading strategy, however, you will be right enough times to make a profit across a series of trades.

An excellent post by Traderji, as usual