How A Computer Reads A Stock Chart - Secret Million Dollar Algorithm Revealed
Looking at a stock chart is not how I pick winners. Don't get me wrong, I do look at stock charts but they are not how I pick 100% baggers. I'm going to show you the exact formula I use to pick winner after winner.
This is not about using technical analysis to read a stock chart. It is something much more effective.
I got this secret algorithm from the crowd of the world's best traders that I run with. This algorithm has the potential of putting you in stocks that can return 100%, 200% even 1,000% and more!
This crazy simple formula can make any computer seem to actually be able to read a stock chart and predict future price action better than a human. Many years ago, software used statistics and models for processing. This secret algorithm goes way beyond that. It's like having 100 stock analysts and day traders inside your computer giving you recommendations!
I know a millionaire trader who swears by this formula and now I'm going to give you his formula for free.
So you are probably wondering why I'm giving this away free. Well, I'm hoping you will make a lot of money from this formula and become a subscriber to my blog. That's fair.
The first component of this formula is to determine the trend. What you want are the daily moving averages in three time frames: the 10 day MA, 20 day MA, and 50 day MA. Here is the first part of the formula: 10 day MA greater than 20 day MA greater than 50 day MA. In other words the 10 day MA is higher than the 20 day MA which in turn is higher than the 50 day MA. If the stock you are looking at meets this criteria, then move on to the next component in this formula. If it does not, go back and keep looking for a stock until you find one that does.
The next step in this secret formula is to examine the last hour of trading on the previous day. If it has closed above the 5 hour MA, move to the next step. It is hasn't toss the stock out and pick a better one.
In this step we must look at the stock's 3 day high. If it is at a 3 day high, you can keep reading the next step below. If not, you need to ditch the stock and start over again with another stock.
The next component in this formula is if the last price of the stock is above the 20 day MA. If it is, move on, if not, reject and start over.
In this step, we need to look at the previous week of trading and then 2 weeks before that. If the stock hit a 3 week high in the last week of trading, that is excellent, keep reading. If not, say goodbye to the stock and start over again with another stock.
The final component in this formula is if the stock has hit a 3 month high in the last month (the previous full month of trading). - 23305
This is not about using technical analysis to read a stock chart. It is something much more effective.
I got this secret algorithm from the crowd of the world's best traders that I run with. This algorithm has the potential of putting you in stocks that can return 100%, 200% even 1,000% and more!
This crazy simple formula can make any computer seem to actually be able to read a stock chart and predict future price action better than a human. Many years ago, software used statistics and models for processing. This secret algorithm goes way beyond that. It's like having 100 stock analysts and day traders inside your computer giving you recommendations!
I know a millionaire trader who swears by this formula and now I'm going to give you his formula for free.
So you are probably wondering why I'm giving this away free. Well, I'm hoping you will make a lot of money from this formula and become a subscriber to my blog. That's fair.
The first component of this formula is to determine the trend. What you want are the daily moving averages in three time frames: the 10 day MA, 20 day MA, and 50 day MA. Here is the first part of the formula: 10 day MA greater than 20 day MA greater than 50 day MA. In other words the 10 day MA is higher than the 20 day MA which in turn is higher than the 50 day MA. If the stock you are looking at meets this criteria, then move on to the next component in this formula. If it does not, go back and keep looking for a stock until you find one that does.
The next step in this secret formula is to examine the last hour of trading on the previous day. If it has closed above the 5 hour MA, move to the next step. It is hasn't toss the stock out and pick a better one.
In this step we must look at the stock's 3 day high. If it is at a 3 day high, you can keep reading the next step below. If not, you need to ditch the stock and start over again with another stock.
The next component in this formula is if the last price of the stock is above the 20 day MA. If it is, move on, if not, reject and start over.
In this step, we need to look at the previous week of trading and then 2 weeks before that. If the stock hit a 3 week high in the last week of trading, that is excellent, keep reading. If not, say goodbye to the stock and start over again with another stock.
The final component in this formula is if the stock has hit a 3 month high in the last month (the previous full month of trading). - 23305
About the Author:
Before you waste the time doing this manually, there is an Artificial Intelligence stock screener that will scan more than 20,000 stocks in 5 seconds. For more information go to Lance Jepsen's blog at stock chart
posted by Mr. Forex at
10:40 AM
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