how to find stocks ready to explode or crash?

#1
Hi friends

It is always a big dilemma when it comes to finding stocks ready to move.
how to handle this perennial problem?
somebody requested me -he thought I am expert while I am really not.
------------------------------------------------------------
Request

inspite of hard effort , i am unable to find (shortlisting) right stocks for daily trading ,
plz throw some light on steps how to find a suitable stocks or exploding stocks at eod for trading next day ..............
also sir in live trading how one can find that this particular stock will move today ? what indication in early hours to see .........................

------------------------------------------------------------------

THE SOLUTION IS POSSIBLY LIKE THIS
FOR POSITION TRADING USE WEEKLY CHART AS BASIS
FOR INTRADAY TRADING USE 4 HOUR CHART AS BASIS.
(IF NOT ENOUGH DATA TRY HOURLY CHART)
HOW TO GO?
DO THE FOLLOWING

TAKE A DAILY CHART AND DRAW PRICE-TREND LINES
THEN SINCHRONISE IT WITH MACD (MACD-SIGNAL CROSSOVERS) OR STOCHASTICS(OVERBOUGHT SELL OR OVERSOLD BUYSIGNALS)

ALSO
USE SUPPORT RESISTANCE LINES TO SEE REVERSALS
NORMALLY PRICE MOVES OCCUR AFTER VOLUME SPIKES.

YOU CAN DO SAME EXERCISE ON 4 HOUR CHART AND USE
THE TRENDLINES- SUPPORT RESISTANCE LINES WITH INDICATOR SIGNALS
AND TRADE ON 3MINUTE CHART(IF YOU ARE REALLY FAST ) OR IF YOU ARE SLOW USE 15 MINUTE OR 10 MINUTE CHARTS.

PLEASE READ MY POST ON TSTW AND TRADE STOCHASTICS ETC
THE ONLY RELIABLE INDICATIONS YOU CAN GET ARE FROM TRENDLINE BREAKS AND SUPPORT OR RESISTANCE BREAKS OR BREAKOUTS-NOT FROM INDICATORS AS INDICATORS ARE THERE TO MAKE YOU LOOSE YOUR MONEY FAST-

NOTHING IS EASY. GET CONCEPT RIGHT-- TEST-- RETEST --UNDERSTAND FIRST-THEN APPLY

THIS IS MY ANSWER

==========================================================
Here is a solution but average trader cannot follow it.almost impossible.
=========================================================
Donchian showed the way to make millions of dollars to richard Dennis.
Donchian himself started using his method after he was 65 years old.
THE 4 WEEKS RULE
BUY IF PRICE BREAKOUT ABOVE HIGHS OF PAST 4 WEEKS AND EXIT IF PRICE FALLS BELOW LOWS OF PAST 2 WEEKS.
20DAY HIGH BREAKOUT BUY WITH STOPLOSS AT 10DAYS LOW.
FOR SHORTING,
SELL ON PRICE FALL BELOW PAST 20DAY LOWS AND BUY BACK IF PRICE MOVES ABOVE PAST 10DAYS HIGHS

TARGETS CAN BE SET IN DIRECTION OF TREND BASED ON VOLATILITY.
 
Last edited:

Vertigo_1985

Well-Known Member
#2
I do following things so that i can find right stocks(enough volatility) to trade -
1. If there is good momentum in a stock for today i expect it to continue it tomorrow or day after too. Just check this link for stocks that have gained most or lost most.http://www.moneycontrol.com/stocks/marketstats/mostactive.php?optex=NSE&index=7&opttopic=mostactive

2. Once you have list of most active stocks for today you need to ensure that they have enough average trading volume per day. Check how much volume it did on previous days in NSE. Minimum you should be looking for is 100000, higher the better (for higher priced stocks volume may be lower). With time you won't need to check it.

3. Initially keep the list small, say like 4-5 of the best in% change and volume, you can increase it as you get comfortable.

4. For stocks which were in trend(higher timeframe like daily, 1 hour) and now are consolidating(sideways), i keep the important break level in alert list. When it breaks the level it is expected to give good momentum in break direction.

4. My other candidates are stocks with news. If you are comfortable trading gaps then they provide very good trading opportunities.
 
#3
Hello Fordk,

It is difficult to select stocks by Macd or stochastic or trendline breakout.

You should be able to SCAN or explore that would be easy rather then select one by one. I m using Macd or stochastic or trendline breakout for Finding trend..

My method is to find RANGEBOUND stocks which are ready for breakout...

Benefits - Your stoploss would be small in rangebound stocks .. Risk reward ratio would be good.

But by using Macd or stochastic u will be in middle of trend and stoploss would be Big n so RR.

.......................................................................

My way -

I m finding out .. Rangebound stocks 1st for last 5-7 days.
then take my intraday or swing trade or positional too.

After the breakout from rangebound area.. i prefer buy.to find trend.. m using macd, stochastic or trendline breakout.


Happy trading
 

Mr.G

Well-Known Member
#4
 

dell

Well-Known Member
#5
what factors r to be keep in mind , while selecting stocks at eod for trading for next day .....

also

while selecting stocks in early hour of trade what measures has to be kept in mind ...

volume , sr , candlestick pattern .............many times while seeing all this if we came across 4-5 stocks than how to decide to marry with a particular stock ............?
as many times when we select a particular stock it not moves and the other one we left is roaring high and high.................
 

hmp

Well-Known Member
#6
Shrutiji
Where & how to find rangebound stocks?.Do you use any afl or website to scan the stocks?
Regards
 

maneverfix

Well-Known Member
#8
Hi friends

It is always a big dilemma when it comes to finding stocks ready to move.
how to handle this perennial problem?
somebody requested me -he thought I am expert while I am really not.
------------------------------------------------------------
Request

inspite of hard effort , i am unable to find (shortlisting) right stocks for daily trading ,
plz throw some light on steps how to find a suitable stocks or exploding stocks at eod for trading next day ..............
also sir in live trading how one can find that this particular stock will move today ? what indication in early hours to see .........................

------------------------------------------------------------------

THE SOLUTION IS POSSIBLY LIKE THIS
FOR POSITION TRADING USE WEEKLY CHART AS BASIS
FOR INTRADAY TRADING USE 4 HOUR CHART AS BASIS.
(IF NOT ENOUGH DATA TRY HOURLY CHART)
HOW TO GO?
DO THE FOLLOWING

TAKE A DAILY CHART AND DRAW PRICE-TREND LINES
THEN SINCHRONISE IT WITH MACD (MACD-SIGNAL CROSSOVERS) OR STOCHASTICS(OVERBOUGHT SELL OR OVERSOLD BUYSIGNALS)

ALSO
USE SUPPORT RESISTANCE LINES TO SEE REVERSALS
NORMALLY PRICE MOVES OCCUR AFTER VOLUME SPIKES.

YOU CAN DO SAME EXERCISE ON 4 HOUR CHART AND USE
THE TRENDLINES- SUPPORT RESISTANCE LINES WITH INDICATOR SIGNALS
AND TRADE ON 3MINUTE CHART(IF YOU ARE REALLY FAST ) OR IF YOU ARE SLOW USE 15 MINUTE OR 10 MINUTE CHARTS.

PLEASE READ MY POST ON TSTW AND TRADE STOCHASTICS ETC
THE ONLY RELIABLE INDICATIONS YOU CAN GET ARE FROM TRENDLINE BREAKS AND SUPPORT OR RESISTANCE BREAKS OR BREAKOUTS-NOT FROM INDICATORS AS INDICATORS ARE THERE TO MAKE YOU LOOSE YOUR MONEY FAST-

NOTHING IS EASY. GET CONCEPT RIGHT-- TEST-- RETEST --UNDERSTAND FIRST-THEN APPLY

THIS IS MY ANSWER

==========================================================
Here is a solution but average trader cannot follow it.almost impossible.
=========================================================
Donchian showed the way to make millions of dollars to richard Dennis.
Donchian himself started using his method after he was 65 years old.
THE 4 WEEKS RULE
BUY IF PRICE BREAKOUT ABOVE HIGHS OF PAST 4 WEEKS AND EXIT IF PRICE FALLS BELOW LOWS OF PAST 2 WEEKS.
20DAY HIGH BREAKOUT BUY WITH STOPLOSS AT 10DAYS LOW.
FOR SHORTING,
SELL ON PRICE FALL BELOW PAST 20DAY LOWS AND BUY BACK IF PRICE MOVES ABOVE PAST 10DAYS HIGHS

TARGETS CAN BE SET IN DIRECTION OF TREND BASED ON VOLATILITY.
Hi, I came across one thread in TJ, by Khushi005, exploding stocks, dont Know methodology but you can check the thread
 
#10
ravinikl;840800]hi
as kushi is not writting in this forum i used to continue the thread. But i used slightly different way of stock selection. at present i am preparing an excell file to get data on real time and to recommed stocks. so far the hits are 8/10 with acuurate levels of entry and exit.
The softwere faced problems of source code due to yahoo no more providing real time data . now i am in process of changing the source code. sorry this is not free softwere , but really u will like it as the cost may be as low as 1500 rs per month. i will send this money to one of my friend who is very very poor and facing lot of problems. add my name to yahoo messenger when it is getting realesed.

regards
ravinikl

People find news ways of advertisements:lol::D:lol::mad:
 

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