3SOF

Hey Cal,

Classic ESM in play on HOM right now - we got exhaustive selling, 1st bounce, second higher bounce and are about to hit the 40MA on the 1 min chart.  Onlye thing we need now is a break of the descending trendline and a gradual rise into the 8s  - whaddya think??

OK cancel that, and thank god I didn't play it!!!  HOM just tanked again  eucch!!!!

I suggest you read the new stocklemon report before you even think of buyimg:


http://www.stocklemon.com/06_06_06.html

I'm so glad to see someone else looking for a selling volume capitulation in here.
I've been calling it a momentum low entry (from John Bollinger's Bollinger Bands).
I was starting to doubt that strategy.
Most of the time, I find that when I enter, the price goes up.
The problem is I don't exit while it's still on a plus for the day.
Recently, about 2 day's ago, I've been testing the linear regression/RSI(2).
I almost abandoned the idea of selling volume capitulation.
Now, I plan on integrating both.
We'll see how it goes.

How do you see MAMA right now?
It looks like it had a selling volume capitulation on the 1 minute,and has broken the downtrend.

MAMA just broke the upper bollinger band on volume in the 1 minute chart.

Quote from: ScottishTrader on June 06, 2006, 11:11:21 AM
Hey Cal,

Classic ESM in play on HOM right now - we got exhaustive selling, 1st bounce, second higher bounce and are about to hit the 40MA on the 1 min chart.  Onlye thing we need now is a break of the descending trendline and a gradual rise into the 8s  - whaddya think??

Haha,

Hey a bit late with my reply (pm me next time  )

- Yes, it MUST break the downsloping trendline ALWAYS...crucial element in the success rate of the model.

cal

After re-reading this thread and the links attached , the Exhausted Selling Model looks very similar to what I've read on Bollinger on Bollinger Bands if I remembered it correctly (I just borrowed the book from the library).

1) Momentum low = Big volume outside the lower band
2) Recovery rally = should touch or exceed the middle band(moving average that connects the highs)
3) Price low = should be a low inside the bollinger band with lower volume
4) Entry = a break of a tight upper band with increased volume.

If this is incorrect, please let me know.

ESM play here - risky since it is a 1.00 stock - but at least it fits the proper criteria (the 4 checkpoints) 

CPST

nice calven, don't think i've seen an ESM applied on a daily timeframe.  seems like a reasonable target could be the 1.60 llevel.

Nice Calven,

That picture looks really nice and clear.
Applaud.

Ares