How Do You Know When a Stock Hit a Bottom?
★ SUMMARY ★
Many beginners try to find the bottom of the stock or when to get in and when to get out of a stock. You are always trying to find the lowest point however it is very difficult to find or catch the lowest point of a stock.
How does a stock move lower?
If a stock is moving lower, it is moving from its high and it starts trending lower and lower, usually in a wave type or a stair step pattern. As the stock is making these lower lows and lower highs, this is the trend of the pattern. Because stocks don’t go straight down and neither do they go straight up. Once this pattern reverses meaning the stock starts making higher highs and higher lows, you will see the trend start pushing upward and that is kind of where you start seeing that the stock has made its bottom. When you see the same type of time frame changing the stocks direction and changing its pattern.
Posted at: http://tradersfly.com/2014/08/know-stock-hit-bottom/
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I am a newbie but listening to you I feel reassured and confident, because you make things so simple, thanks. And by the way I am learning just the principles because I just started trading in my local market in Jamaica.
One second Sasha let me pour my Drank........................................................................................................................................................................Ahh ok....go ahead
+B NYCe The bottom for which time frame? In the next week - in the next month? in the next 5 years.... there are tons of bottoms out there - it depends on what time frame you are looking for and your plan.
I meant to ask this question on your last recap but I guess you don't make them available for every youtube watcher, only for subscribers, but here I go: could you make a video where you show the guidelines or the criteria that you use when it come to set up your alerts on your trading platform so you can know what are the stocks that are breaking high or the stocks that are high in volume? or you just happen to search stock by stock until you find the right set up? or do you maybe use a scanner like equityfeed or you maybe use that one that comes built in you platform. I mean what do you look for? how do you find those stocks? I know you normally trade the same stocks all over but sometimes you come up with some new stocks that I've never seen you trading. Thank you for the motivation at the end of the video, I really needed it!
I personally use TC2000 and IBD as learning tools. TC2000 which is the tool Sasha uses in his rapid recap videos is VERY powerful and turns out to be a great company from what I can tell. The reason I say that is that they host a full day live workshop to their paid members for free in many parts of the country and the trainers are CMTs and know a lot about charts and more specifically, the tool and how to configure it to do all sorts of alerts and they will pretty much write any scan you want via their forums.
+Juan Carlos Mogollon Contreras Hi Juan, this may be a great thing to include in a mini training video in the future as this question has a few questions attached to it. I will try to see if I can do something simple to give you an idea for scanning (in the future). For those that have the Day Trading Domination course it is in the second / third video which goes in very good detail. In simple terms I watch for stocks that are moving, have high action, volume, popular, and the leaders.
looks like VRNG hit bottom on the capitulation we saw last week (although I realize you do not play the pennies), to wit, the Apple "gap" that I defined as a "runaway gap" mentioned 2 quarters ago on their ER/CC surprise isn't going to fill anytime soon, unless you see $160 points of downside. I just hope other folks here understand that HFTs/superbots tend to exaggerate moves in both directions, and NASD volume is double counted.
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Systems and Equipment.
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Public Emergency Services.
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