3SOF

I am still studying and learning about the "G patterns" everyday.  The main thing I've discovered over the past few weeks is that while one cannot expect every breach of the g spot to bring a double or more, almost every breach of the g pattern that i have followed/traded has led to at least a nice spike in the pps.  Sometimes the spike is quick, but if you are vigiliant, there is money to be made.  I'd like to find some more time to post my research, and I'm hopeful that I'll slow down at my "day job" over the next week.  I have been working on trying to come up with a quick way to pre-screen for stocks in phase 2 of the g pattern (the consolidation phase), and would certainly like to hear from EliteG and others on what they've been able to come up with.  It is very tricky to come up with screening commands that weed out stocks not in the g pattern, while not being too exclusive of possible great g pattern plays.  When you break it down, what we are really looking for are stocks that have had "recent" "large" spikes in volume and "good" spikes in price per share, that have since come down, at least in price per share, but not lower than the low of candle preceeding the initial spike.  The quantifiers that need some work are:

Recent:  how far back in time do we want to go?  If you go back too far, you are probably no longer working from the momentum that caused the initial spike.  I was thinking of setting a date parameter of 14 days.

Large Volume Spike: EliteG's rules call for a recent gain that was made on good volume.  This makes sense, as we want confirmation that there is a strong market to continue buying the stock once it has finished consolidating.  So, the question becomes, where do we set the volume parameters?  I have been kicking around setting it at: any spike in volume during the last 14 days that is 40% or more greater than the average two month volume for the stock.

Good Spike in PPS:  Obviously very important to the analysis.  To be considered a g pattern, we need a stock that has spiked considerably on large volume.  Again, setting the price parameter is very arbitrary, but I was thinking that a good starting point would be to search for stocks that, within the last 14 days, have had a spike in price that was at least 25% higher than the 1 month average price of the security.  Obviously, we need the spike in pps and volume to be during the same day(s) during the 14 day period.

The two most recent g patterns that I played were VYST and CRGO.  I don't have time to post the charts right now, but if you go back and look at VYST, you'll see that it had a g spot somewhere around .13.  It crossed that spot, and within days was over .40.  It has since fallen back, but it was a very profitable play if you caught it during phase 3 of the g pattern.  As for CRGO, the g spot was at .023. It crossed it last week and spiked to .029, and then quickly came back down and closed on Friday at .02.  While I don't think the CRGO run is over (this company is just getting started in the logistics business and already has a deal with Continental Arilines), if you were vigiliant, you could have come away with a 17%-20% gain after it crossed .023 (I'm still holding my shares).

Anyway, I really think there is something to the g patterns, and I have made some good trades over the past few weeks based on them.  I will post some charts of my g pattern plays (which inlcude ADDI, MSSI, FCCN, PHOX, IFDG, WGFL, CRGO, VYST, and a few others) as soon as I get some time this week.  In the meantime, if I find any others, I'll post them on the Penny Stock Picking thread.  I welcome any comments/suggestions to the scanning criteria that I'm working on -- and would welcome seeing what others have come up with (including G pattern stock finds). 

Good luck all -- let's make some money this week.

nice work stocksquire (applaud)

allow me to redirect your g-pattern efforts to the technical analysis board where I have started 2 threads for g-pattern analysis.

one is g-pattern past plays:
http://www.3stocksonfire.org/trading/index.php?topic=2187.msg15936#msg15936

and the other is potential setups:
http://www.3stocksonfire.org/trading/index.php?topic=2186.0

this thread either dies out or I will eventually try to test some other things here.

thx man 

Hi, eliteG:

    Where did you get the historical data and daily data for BB and PINK stocks.

    I know one resource which is for free for daily BB stock data but I would like to know the resources for historical data.

    Once I got it, I may be able to write a program to scan all stocks to identify daily G-Pattern stocks.



 

Well you are gonna laugh butfor historical research I used the eyes and a lot of charts.

My scans are primitive(i use stockcharts.com scanning tool).  I picked out stocks from .0001 - 10 nowadays.  and used candle glance(stockcharts.com list viewing option)..which allowed me to look at many charts on the same page. 

I just wrote down the names of the ones I saw big moves on and weeded out the ones that I believed were unplayable because of too quick a rise or too low a volume. 

I can only scan AMEX, NASDAQ, NYSE and BB stocks with stockcharts.com.  Any pink sheet examples I have from memory or found them somewhere.  I try not to play pinkies.

You see the g-pattern is a visual pattern.. an idea.. so a scan would be difficult to write. 

What are you using for your scanning? and what parameters are available that you think would help for g-patterns?

Do you have to pay to use stockCharts.com scanning features?

Right now I am using our own software (developed in-house) to scan stocks.

The software now can identify some patterns such as double top, double bottom, resistance/supporting levels, flags, automatic trendline drawing, etc.

So, it is very easy to find stocks which has double bottom/top, which touched important support/resistance levels etc.

I may be able to add a routine into the software to find stocks having G-patterns (stage 3).

I like to add one point:

   No matter what trading strategy one uses, that trading strategy has to deal with three things:

1. entry strategy;

2. profit taking strategy;

3. stop loss strategy.

if u write ur own code (software) you can identify patterns by the numbers.
that doesn't sound too hard.
i believe pattern G is doable in software.

you could even come up with a number to "rate" each stock on how "pattern-G-ish" it is.

-rocket8

Allright.. I'm gonna try something a bit different now in this thread.

I'm going to try to locate stocks that have a strong chance of gapping up the next day... or at the least move strongly higher the next day.  The buy should be made near end of day as that is when I can have the most analysis as to its gap potential.  The stock will be sold the next day and if its really gapping strong I may sell in the pre-market.  I will use earnings plays too if I see one that looks good  .

summary:
-buy stock near end of day that shows gap potential
-set up a stop loss at the time of buy(have to protect against loss)
-sell stock higher the next day

based on technicals and momentum behavior.

The idea is to be quick and ruthless 

I'll be using real $ and re-investing it into the next play.  I will not discuss the amount I use but I will calculate it all based on a 10k start.

May pick one before end of day today(friday 8/19) or start Monday.

I hope I can get some good suggestions from everybody.

Now its time for some infinite compound!   

Lets kick some market! 

china came out with decent earnings today but stock only up like 10%.  Might gap up as more people find out about earnings.

These are the stocks I was considering..  CHINA(thx catrader), REDF, SIFY, VPHM, BCON, IDBE, TOMO, SOHU

and I believe I'm gonna go with IDBE if I go with something.. not sure yet   

IDBE is acting great here near close but I am going to wait till next week to start.     ..so no buy, lets see how it does Monday morning.  Everyone have a great weekend    Take it easy.

   TO ELITE G  WHAT HAPPENED TO YOUR G-SPOT ANALYSIS THAT SEEMED TO BE DOING SO WELL A COUPLE OF WEEKS AGO? DID ANYONE FINE TUNE,SCAN OR TWEEK IT SOMEWHAT?  WISH WE COULD ALL JUST STAY WITH A WINNING METHOD!

Quote from: kennyg on August 19, 2005, 10:23:29 PM
TO ELITE G WHAT HAPPENED TO YOUR G-SPOT ANALYSIS THAT SEEMED TO BE DOING SO WELL A COUPLE OF WEEKS AGO? DID ANYONE FINE TUNE,SCAN OR TWEEK IT SOMEWHAT? WISH WE COULD ALL JUST STAY WITH A WINNING METHOD!

I know what you mean kennyg.  But do not worry.. there is a place for the g-pattern.

If you want to study it:
http://www.3stocksonfire.org/trading/index.php?topic=2187.0

If you are looking to talk to people looking for potential plays or want to post potential plays:
http://www.3stocksonfire.org/trading/index.php?topic=2186.0

People interpret things differently.  This is definately true with stock patterns and the G-pattern in particular.  I have some strict requirements for the g-pattern now after studying some fakeouts and I will try to mention it if I see one that means my criteria.  I do not believe the g-pattern happens too often.

So what am I doing with this thread?  Well I am a true fan of the markets.  I am just exploring different fun things here... and it would be a nice bonus to make a million dollars I'm thinkin.  Its important, anyway, for a trader to have many tools in their arsenal, no? 

But thanks for the reply..  I will try to stay on top of the g-pattern.  If you have any questions let me know. 

Check out the links too   

g

i imagine anything like pattern G would have to be really strict to work.
it would have to be the market for that stock really acting according to the psychology you believe the pattern indicates.

jmho

Quote from: eliteG on August 19, 2005, 03:52:19 PM
IDBE is acting great here near close but I am going to wait till next week to start.     ..so no buy, lets see how it does Monday morning.  Everyone have a great weekend    Take it easy.

IDBE rockin and rollin!