"The 3 Magic Lines Strategy"

[Terliso]

KNOL too.... Mometum Strat, just simply hunt them & hold 'em for big gains

[Terliso]

How about DCEL   

[Terliso]

PETS

[AussieTrader]

T3ML Scan Results from Monday Close (Note no MACD weekly crosscheck):

AVLN
EGDI
ENER
HDVY
INGN
MCK
SDIX

Scan Criteria:
3 Magic Lines 60K Vol
• For the last market close:
• United States Stocks with...
• 50-day Simple Moving Average of Volume for today is greater than 60000
• Daily Close for today crosses above 50-day Simple Moving Average of Close for today
• Daily Close for today crosses above 200-day Simple Moving Average of Close for today
• Daily Close for today crosses above 200-day Exponential Moving Average of Close for today

[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.



Daily & weekly scale 3 magic lines is the perfect "3 Magic Lines Strategy"
Example: STEC

SNDK

[Terliso]

Daily & weekly scale 3 magic lines is the perfect "3 Magic Lines Strategy"

** JAVO **

[Terliso]

** SIRI **

[Terliso]

***** COGO *****

[Quasi]

Hi Terliso

Came across your thread yesterday, very interesting concept.  I'm not a day trader or short term trader, I'm more of a swing trader usually for several weeks to months or years.  Although I will accumulate & reduce as required according to the chart action.

Anyway I was so interested I spent last night going through all the posts on this thread, also went thru half a bottle of single malt scotch while reading them all.  In the past I've seen some of these types but  was always reluctant to chase it after that big initial jump, often a healthy gap up.  All the examples here look very good and probably worked out just fine, I guess you just have faith in the system and jump in with appropriate hard or soft stops in place.  But I have to wonder how often you get failures of the pattern and what do you look out for to signal that something may not be quite right?

I also like the tie in with AussieT's steps method for entry, looking at that thread tonight and maybe the other half of that scotch bottle.

Your method of scanning for prospects seems like a lot of work, where do you find the time.  Do you do it every day or just once a week or so ??

I think I read that AussieT was working on a scan, I will also try to develop a custom scan using Stockcharts advanced scan engine and see what I can come up with.  Hopefully I can contribute something useful to your effort.

Great work thanks, if I could applaud you I would, but will have to wait until I get a few more posts under my belt so as to qualify.

happy trading / investing
Quasi

[rurouni]

Ok guys, I think I got one of these and it just broke out of the 3 magic lines on Thurs, Dec 14, 2006.

ABX just broke out of descending line patterns on heavy volume and pushing through the 3 magic lines.

-------------------------------

NP says AGF does well unloading its First Quantum

2006-12-14 09:34 ET - In the News

See In the News (C-FM) First Quantum Minerals Ltd

The National Post reports in its Thursday, Dec. 14, edition the Canadian materials industry was on a tear in 2006. The Post's Sonita Horvitch writes in the Buy & Sell Roundtable the question now is whether the group will continue to prosper in 2007. Materials stocks are up 38 per cent this year to November. AGF Management chief investment officer Martin Hubbes says: "If you are a long-term thinker, China and India will be a factor. Shorter term, it is hard to see how China in particular retains its growth rate if the U.S. economy slows. We have been taking profits during this year. Falconbridge was taken out and we did not replace it. More recently, I sold the holding in First Quantum Minerals and did extremely well." Mr. Hubbes says he is sticking with gold. He says he like Barrick Gold. He says gold is a good way of protecting your portfolio if global liquidity becomes a problem. He says gold "is a safety valve." Guardian Capital manager Ted Macklin says he concurs with Mr. Hubbes view on gold. He says, "Gold provides ballast for a portfolio." Mr. Macklin says he is underweight the commodity metals. His biggest holding in materials is Potash Corp. of Saskatchewan.

[gmarc66]

FDMLQ looks like a candidate for the T3ML, these q stocks keep popping..wiating for this one to possibly do the same. 

Any thoughts?

thanks

julia

[Quasi]

Hi Terliso,

Been doing a little more work on my idea of a scan to help look for possible stocks for your strategy.  I know Aussie Trader has also done some work on this to, so I hope we can collaborate a bit and get a good working scan.  I've put a copy and a detailed explanation of my scan over on  Deadb440's TA advanced scan interface board, so if you're interested you can see the details, link as follows;

http://www.3stocksonfire.org/trading/index.php?topic=4755.msg81368#msg81368

Terliso, basically I'm just trying to follow your basic rules,
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.

and I added a few other qualifiers like, price between $0.5 and $15, min 20 day ave liquidity at greater than $500K, 3 ma's within +/- 5% of each other.

I just ran the scan tonight and these are the ones it picked up, WBTO, TTP, LSCC, DOCC, DFC, CF/UN.TO.

Now I will throw out DOCC as they just got a buy out offer, and I won't talk about Canadian stocks right now, the other four have some possibilities.  I know TTP has already been mentioned on this board so I was very happy that the scan picked it up.  For convenience I've included a couple of charts here.

Let me know what you think about the scan and if you have any other ideas, I haven't looked up anything on the following companies which I would have to do before any decision you know standard DD.

Happy trading / investing
Quasi

[nullzero]

So ENER would not qualify yet for the 3 magic lines because it has not had a bullish cross yet... From the looks of the ENER chart its at 0 MACD again and ready to retry for a bullish cross over. So if ENER makes a bullish cross this time around that would qualify it as a 3 magic lines pick?

EDIT: NM I see the price needs to be above the 3 magic lines.

[Terliso]

T3ML ----> NWACQ is definitely fits here.... strong resistance @ $6.00 that could be the top

NWACQ hit the resistance @ $6.00... fantastic run!

Too much resistance, NWACQ is tanking...

[Quasi]

T3ML ----> NWACQ is definitely fits here.... strong resistance @ $6.00 that could be the top

NWACQ hit the resistance @ $6.00... fantastic run!

Too much resistance, NWACQ is tanking...

Yes Terliso, interesting chart, but have to agree.

Pretty bad looking three candles thru the 18th and a little bounce of $3.50 today , but I don't see alot of strength and I think $3.50 will also ultimately fail.  That last run to $6.50 was on lower volume and with neg divergence on a few indicators.

I always a little scared of getting involved with these companies operating under chapter 11 bankruptcy, they can be very volatile and have some great runs.  But as an unsecured common shareholder its a bit like playing musical chairs, you never know when after hours they will announce some deal to emerge from bankruptcy protection.  Usually this involves new financing and new shareholders and new stock.  Now most of the time the old stock just stops trading and the new shareholders get the new stock, old shareholders end up with wallpaper.

On a different note, I've been taking a look at the charts on BFLY and they seem to be similar to your T3ML system.  But I didn't pick it up with my scan, had to do a little massaging of settings as the daily traded $ setting was a little too high to catch this one, also had to widen the band a little for MACD coming from a little farther below zero.

I'm gonna be very busy over the next couple of weeks with Christmas family reunion stuff, but will try to find some time to make some updates to the scan.

happy trading / investing
Quasi