TRADING SYNOPSIS

Entering Trades: TREND hr. > MACD > 4hr Swing > Price vi-a-vis Resistance/Support > 1 mt. Chart When price has touched the oversold/bought area, check the next higher chart until the price visibly changes. 1. After determining a swing reversal in a monthly chart (4 Hr for forex), for shares, fine tune by referring to a weekly chart (1Hr. and 1mt for forex)to enter trade. Check the Volatility in lower period chart to enter. 2. Ranging markets - use the Bollinger bands. 3. Stops - place 2 to 3 bars above or below the last resistance/support on the next higher chart 4. Wait for price to cross previous resistance or support after a high volume before taking position 5. Target price next resistance or support or Fibonacci level 6. Use MACD and Fibonacci with 100 period MA, a trading signal is generated when a bar crosses the MA. Lower/upper of the bar is the stop loss 7. Market correction is a minimum of 1/3 rd to a maximum of 2/3rd 8. When prices keep increasing when Oscillators are in oversold region, watch the next resistance lecvel Monitoring: 1. Price changes at resistance/support, trend line, Fibonacci retracement. 2. If price bounces at 0.6 and above, it will go up to 1.6 times the drop/rise. If it bounces off 0.8 it will go up to only 1.27, judge this with previous resistance/support 3. Divergence price moves in a direction opposite to MACD or stochastic, trend will change 4. Trend change is indicated by head and shoulders, candlesticks narrowing towards support or resistance, lower lows or higher highs with MACD and stochastic 5. If the bottom or top of a stochastic oscillator is thin and shallow, the rally or contraction will be strong. If they are broad and deep, rally or contraction shall be week.

Stock Selection Go to MSN Money> Stock Scouter Enter the stock symbol and check its ratings 10 - best, 1 least Or check the top 10 or top 50 stocks, rated by StockScouter Check top stocks by category. GOLDEN RULE:
Instead of trying to catch the bottom or the top of a trend, use counter trend moves to create better entry points for an entry that harmonizes with the long-term trend.

More tedious ways are: Morningstar watch list gives all the data Share price should not be > 2/3rd the intrinsic value Look for companies with the lowest P/E ratio, in the same field PEG <1 Stock price should not be more than the book value - Debt to equity ratio < 1 5. Current assets be two time current liabilities 6. Dividend yield be at least 2/3rd of long term AAA bond 7. Earnings growth be at least 7% per annum compounded for the last 10 years 8. Equity be public for at least 10 years 9. Price to sales be less as possible 10.Dont risk more than 2% of equity to maintain mental dicipline
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MARKET WATCH: 1. 2. 3. 4. 5. Rating can be checked Read analyzer report Read News Insider Info Some financials 6. Market Perception > gives info on top , bottom and most favored shares MOVING AVERAGES
A moving average is an indicator that shows the average value of a security's price over a period of time. This type of event occurs when a shorter and longer moving average cross each other. The supported crossovers are 21 crossing 50 (a short term signal) and 50 crossing 200 (a long term signal). A bullish signal is generated when the shorter moving average crosses above the longer moving average. A bearish signal is generated when the shorter moving average crosses below the longer moving average.