Help Needed from Chartists , Technical Folks

[billyjoe]

I've been told that the best candidates for price appreciation are stocks that have the smoothest upward chart from left to right. Is there any evidence to support this claim?

Also, I've wondered if the angle of a stock's price movement has any bearing on future increases. For example is a gradual slope up better than a steep slope up assuming you haven't yet purchased the stock? Thanks

-----------billy

[peanuts]

It seems like common sense, but I've never heard anyone use that as a trading strategy. It's more like, "look at this stock, it does nothing but go up" and its simply a declarative statement that nobody can argue against.

As far as your question on charting:

What kind of time frame? Is this a 1 year, 6 months, 3 months chart? Or something else?

Log scale and linear scale change the trajectory of your line.

You need to consistently use the same chart settings, that way you evaluate all stocks from the same point of view.

[jiesen]

my chart says

your stock will keep going up until it doesn't

[billyjoe]

your stock will keep going up until it doesn't

Jiesen,
Not always true. Back in '00 or was it '01, I had a stock so hot it kept going up even after it stopped. The angle of accent was so steep it started coming back the other direction!

-----------billy

[billyjoe]

Peanuts,
I'm usually looking at 1 year charts. VV sometimes states in their tutorials to look for nice smooth upward lines (absence of volatility, I guess).
But they never offer any evidence that those stocks do better in the long run.

--------------billy

[Deaddog]

The trend is your friend till it ends

I don’t know of any evidence. Like Yogi said “It’s tough to make predictions especially about the future.”

I usually use charts to look for unusual activity to alert me that something may be going to change with the fundamentals.

[Peter Hansen]

Stock Charts

I am by no means an excellent chart man , but according to a man named Jack Carter it is best to play stocks reaching their 52 Week highs , having higher highs and higher lows, trending up, at least $12 and up, with volumes of 500K+ shares and above their 20 50 and 200 DAY EMA www.bigcharts.com will have that information when you click on their Big Reports tab.
Currently GLBC would be one example!

[Deaddog]

I am by no means an excellent chart man , but according to a man named Jack Carter it is best to play stocks reaching their 52 Week highs , having higher highs and higher lows, trending up, at least $12 and up, with volumes of 500K+ shares and above their 20 50 and 200 DAY EMA www.bigcharts.com will have that information when you click on their Big Reports tab.
Currently GLBC would be one example!

Kind of a Mr. Market thing; Buy high and sell higher,
Who is Jack Carter? I've heard of John Carter, author of mastering the trade Mastering the Trade. What is Jacks claim to fame?

[mrmarket]

Kind of a Mr. Market thing; Buy high and sell higher,
Who is Jack Carter? I've heard of John Carter, author of mastering the trade Mastering the Trade. What is Jacks claim to fame?

It's a market thing. If there is an irrational fear of buying stocks at their highs, then the tautology infers that stocks at their highs would be actually undervalued since they are being avoided because of this irrational fear.

Cows walk to get their food, but they run from danger. That's what investors do too. That's why a slow crawl up by a stock is a good thing...the cows are eating.

[Deaddog]

It's a market thing. If there is an irrational fear of buying stocks at their highs, then the tautology infers that stocks at their highs would be actually undervalued since they are being avoided because of this irrational fear.

Cows walk to get their food, but they run from danger. That's what investors do too. That's why a slow crawl up by a stock is a good thing...the cows are eating.

Walking cows are fine but you can make hay when there's a stampede.

Watch the chart for breakouts. Like cows in a fence, once one finds a way out, it doesn't take long for the whole herd to be on the other side.

[Peter Hansen]

Jack carter response!

Jack Carter was a trader and is now selling a software program , "Trend Point Software" for around $4000 , and frankly I dont think it's worth it. I do not have the program but these lessons below are FREE and well worth the time to view them. He uses 20, 50, 200 EMA for the trendlines, and gets his picks from www.bigcharts.com . Go to site click on 'BIG REPORTS" 52 WK highs and get the highs for the NYSE, NASDAQ, and AMEX markets , then simply find stocks , trending up at about a 45 Degree angle , with the candles or bars above all 3 trend lines! GLBC appears to satisfy those criteria for this period 5/31/11 -6/10/11.....and according to JACK
buy about 300 shares of GLBC with a 2-10 day holding period. for a 2-5 point gain . Will it work .....well we shall see! Watch GLBC!!

1 http://www.youtube.com/watch?v=lF5VbjDeYSs

2 http://www.youtube.com/watch?v=ssATy...eature=related

3. http://www.youtube.com/watch?v=xre8b...eature=related

4. http://www.youtube.com/watch?v=Y55RF...eature=related

What Stocks Can you come up with that satisfy the system requirements ? Remember he likes stocks over $12 and with at least 500K volumes

[Deaddog]

buy about 300 shares of GLBC with a 2-10 day holding period. for a 2-5 point gain . Will it work .....well we shall see! Watch GLBC!!

1 http://www.youtube.com/watch?v=lF5VbjDeYSs

2 http://www.youtube.com/watch?v=ssATy...eature=related

3. http://www.youtube.com/watch?v=xre8b...eature=related

4. http://www.youtube.com/watch?v=Y55RF...eature=related

What Stocks Can you come up with that satisfy the system requirements ? Remember he likes stocks over $12 and with at least 500K volumes

Thanks for the links;
In video #5 of the u tube series at 3:17 Jack shows a stock with a very similar pattern to GLBC. Then comments that it is a terrible pattern. What am I missing?

[Deaddog]

What Stocks Can you come up with that satisfy the system requirements ? Remember he likes stocks over $12 and with at least 500K volumes

A finvis scan looking for stocks that meet new high; above $15; Vol over 500k; Price above 20ma; 20 above 50ma; and 50 above the 200ma gives about 117 stocks.

I usually narrow it down by asking for stocks that have Q over Q earnings and sales growth. That gives you 93 stocks to look at today.

If the pattern you like is GLBC look at DISH

[Peter Hansen]

Thanx For DISH

A finvis scan looking for stocks that meet new high; above $15; Vol over 500k; Price above 20ma; 20 above 50ma; and 50 above the 200ma gives about 117 stocks.

I usually narrow it down by asking for stocks that have Q over Q earnings and sales growth. That gives you 93 stocks to look at today.

If the pattern you like is GLBC look at DISH

Thanx for your input!