I'm a relatively new member of this forum, and would like to share ... some of the trading strategy.. i read recently.. and hence found it .. interesting hence I would like to share it with all of you.
And would appreciate your feedbacks/comments also.
It works on the Mid range premise i.e.
Take the high and the low of a stock and then divide it by 2.. hence getting a mid numeric value. If you stock closes above this level then signs of it being bullish the next mrng is quite possible .. and below this level.. shows waning momentum in the stock.
This method combined with the overall index using the same strategy.. in combination with the stock can deliver good results with strict SL.
+ =above the mid range , - = below the mid range
Markets Stock
+ +
Implication:
Micro and macro momentum are upward bound, providing a stable market is present .The stock will most likely gap up the following morning and may continue upward
Markets Stock
+ -
Implication:
Macromomentum is ending positive, but your stockk is not, this si a sign your stock is not participating. Its weakness may continue the next day. I t has broken from the macromomentum and hence becomes unpredicable.
Markets Stock
- +
Implication:
your stock is showing more strength than the macromomentum. The stock is not participationg, if the macromomentum continues downward your stock may be pulled down the following day, unless it is an unpredicatble exception.
Markets Stock
- -
Implication:
Both Micro and Macro momentum are declinign providing the markt stays in that trend. Your stock may gap nuetral to negative the following morning and continue downward..
Regards,
Sanefellow_213
And would appreciate your feedbacks/comments also.
It works on the Mid range premise i.e.
Take the high and the low of a stock and then divide it by 2.. hence getting a mid numeric value. If you stock closes above this level then signs of it being bullish the next mrng is quite possible .. and below this level.. shows waning momentum in the stock.
This method combined with the overall index using the same strategy.. in combination with the stock can deliver good results with strict SL.
+ =above the mid range , - = below the mid range
Markets Stock
+ +
Implication:
Micro and macro momentum are upward bound, providing a stable market is present .The stock will most likely gap up the following morning and may continue upward
Markets Stock
+ -
Implication:
Macromomentum is ending positive, but your stockk is not, this si a sign your stock is not participating. Its weakness may continue the next day. I t has broken from the macromomentum and hence becomes unpredicable.
Markets Stock
- +
Implication:
your stock is showing more strength than the macromomentum. The stock is not participationg, if the macromomentum continues downward your stock may be pulled down the following day, unless it is an unpredicatble exception.
Markets Stock
- -
Implication:
Both Micro and Macro momentum are declinign providing the markt stays in that trend. Your stock may gap nuetral to negative the following morning and continue downward..
Regards,
Sanefellow_213