"The 3 Magic Lines Strategy"

[Terliso]

Combination of these 3 works just fine

1) The 3 moving averages
2) Sudden rise of volume
3) Weekly MACD Bullish Cross -- above zero level, Exactly @ zero level, bounced off at zero level or near @ zero level.


HSOA

[tokyopua]

Terliso,

Awesome post  , let me be the first to applaud you on all the effort to post all those charts! Between your post and Aussies "STEPS" posts there is some great information being shared on these boards right now.

My question would be how you go about scanning for these stocks?  I played around a little in Stock Fetcher, admittedly not long enough, but maybe you could provide some clarification on how you go about finding these stocks to begin with?  Thanks!

[Terliso]

My question would be how you go about scanning for these stocks?  I played around a little in Stock Fetcher, admittedly not long enough, but maybe you could provide some clarification on how you go about finding these stocks to begin with?  Thanks!

I use www.stockfetcher.com to look for stocks; my favorite & one and only filter there is the "30 Day – Price – New Highs." Once you click that it will give you about 100 to 500 matches, it all depends on the condition of the market. If the market is down then the results are roughly about 100 stocks to choose from. But from those hundreds of results only several stocks matches with my 1, 2 & 3 strategy, so I guess you get the idea.... (It's time consuming).

Tonight I found several stocks that corresponds to my Strategy:
EGO, PMU, ATRS, AZK, CGR, SKNN, SDRG

[tokyopua]

OK, I see. no such thing as a free lunch eh?     Of course maybe we can ask the guys at stockfetcher for a custom filter.  (I tried asking them once for exponential moving average on volume to approximate David's filter, but I dont think they implemented it yet.)

So if I understand correctly then, you look at each stock that made a 30 day high, then plug in the ticker to stockcharts.com, then just look for your criteria, right?

[Terliso]

So if I understand correctly then, you look at each stock that made a 30 day high, then plug in the ticker to stockcharts.com, then just look for your criteria, right?

You nailed it tokyopua! .... But I use a simple trick for short-cut, I just click the 30 day & focus myself to below $10 stocks, that makes my job easier.

[D&Data]

Hi Terliso...
what do you think about these three magic lines ?


TIA,
=IdFix=

[shipman]

I like this thread.  I have tons of respect for all the collaborative work by you guys.  Terliso, you have turned into quite the stock sniffer.  Anyway, I have this cycle diagram I would like to share with you.  Here it is.

[gmarc66]

Yes Terliso,

Nice theory u have here...i like it!

thanks

julia

[catrader]

nice strategy!  might stockcharts.com stock scans be used for this strategy, they have bullish, bearish scans and stocks listed.  guess will check out stockfetcher.  and if i see any that might fit the 3 magic line strategy, is it ok to post here or might terliso like to make another thread for that?

lastly, msn at http://moneycentral.msn.com/investor/controls/finderpro.asp and yahoo at http://screener.finance.yahoo.com/newscreener.html have stock screeners we might like to check out.  They seem powerful, guess just need to see if they can help us narrow the investment selection a few whether going long or short.

also, another methodology,  http://www.trade2win.com/knowledge/articles/general_articles/stage-analysis/page1 , agree, disagree?

[Terliso]

and if i see any that might fit the 3 magic line strategy, is it ok to post here or might terliso like to make another thread for that?

Any stocks & comments related for this thread is welcome

[tokyopua]

David's pick from today, GOAM, lookin pretty magical today, what do you think Terliso?

[Terliso]

I like this thread.  I have tons of respect for all the collaborative work by you guys.  Terliso, you have turned into quite the stock sniffer.  Anyway, I have this cycle diagram I would like to share with you.  Here it is.

Stock Sniffer! Ha ha ha ha... I wish so I can be a billionaire 


If you scrolled up, these are the stocks I have posted in this thread that fits in my 1,2 & 3 Strategy.... and there are lots more I'll post it later on:

VPHM, CHINA, GIGM, STEC, PTSC, AOB, BCON, AVII, CHDT, CHTR, IIJI, HSOA

If you noticed & research some of these stocks, they also the ones that reported good numbers or will report good numbers... Just like CHINA, CHINA was already in the bullish mode in the beginning of august & just 2 weeks ago the company reported good numbers...

My point is, you can actually use this 1,2,3 strat as a signal for "good earnings ahead" even though I don't know how to do a Fundamental Analysis that simple technique tells me that earnings will be good... It's kind of funny huh? but that what I noticed.

CHINA showed up in my stockfetcher filter this august:
http://www.3stocksonfire.org/trading/index.php?topic=7458.30 <--- CHINA

CHTR
http://www.3stocksonfire.org/trading/index.php?topic=168.0 <---- CHTR

STEC
http://www.3stocksonfire.org/trading/index.php?topic=6307.0 <--- STEC

[Terliso]

David's pick from today, GOAM, lookin pretty magical today, what do you think Terliso?

Tokyopua,  GOAM is good I think you can make good profit there... but one of my strategy says:

Combination of these 3 works just fine

3) Weekly MACD Bullish Cross -- above zero level, Exactly @ zero level, bounced off at zero level or near @ zero level.

[gmarc66]

Terliso, so just to clarify:

To check charts to see if they have the 3 magic lines, do u use the daily or weekly. Because the  the weekly and daily charts will reflect the 3 lines in difffernt positions and with different pps's?
As seen with APPI below.

In APPI Daily chart, we see the 3 magics running below the current price.
In APPI Weekly, the lines are in very differnent positions.

Also, u prefer to view the MACD on the weekly and not the daily? Why is this? Dont u just want to be able to see the MACD "above, exactly, bounced off of or near the zero level", at the  point of the uptrending pps that has occured above the 3 magic lines? Isnt it still sufficient to use the daily chart to see this, provided these events took place within a shorter time frame and therefore not requiring the lenthy view of a consolidated MACD? As some of these stocks have all these requirements happening within less then a month, a couple of weeks even, so the weekly chart wont really be anymore useful here...or is it? Like in APPI. Or is APPI not a good representative of the 3 magic lines because they are only seen in the daily chart.

Ok..i think i completely confused myself..and most likely u too

thanks.

julia

[tokyopua]

David's pick from today, GOAM, lookin pretty magical today, what do you think Terliso?

Tokyopua,  GOAM is good I think you can make good profit there... but one of my strategy says:

Combination of these 3 works just fine

3) Weekly MACD Bullish Cross -- above zero level, Exactly @ zero level, bounced off at zero level or near @ zero level.

Sweet, thanks for that feedback, because I realize now that I didnt read your post correctly and was looking for the weekly MACD historgram to be above zero lol, not the weekly MACD signal lines and their bullish cross.  But while on the subject, do you mind elaborating though on why its important to you that they be above zero when they first crossed?  For example, with GOAM they are now above zero, just didnt cross there...

Also, now I will add your accumulation/distribution plot with the 80 dma just so that I am follwing the same charts exactly.  BTW, is there anything in particular you are looking at with the A/D lines there?