assignment for new to charts

[CatFish]

we need suport and resistance threads here. i was going to do one today and they are a couple of the most important indicators. i would like someone new to charts to take the bull by the horns and find out what you can and post how they work and an example that you like and post it also. i found trying to teach others i learn the most so take the challenge. it will pay off for you alot more then anyone else.

[Disqplay]

Posted above is a three year chart of CACH note that the colored lines are for weekly, monthly and yearly rolling high and lows with white being weekly, aqua being monthly and black yearly. I would have put quaterly rolling averages but the clutter was to high.

If you look at the chart there are several things to note that when the weekly monthly and yearly are all at the same value they become either support or ressitance. You can see that the yearly rolling average plays a major key. When the yearly low is broken by both the weekly and monthly and then stabilizes as the weekly and monthly start to climb this would indicate the new level of support for the stock the same can be concluded by the yearly high when it is broken and then stabilized by the weekly and monthly stock prices decreasing marking the latest ressistance level for the stock.

It should be noted that the program is playing a major part in picking these levels by picking the high and low rolling averages. None the less it does provide a very good insight as to how the stock is doing compared to pass and present performance.

Looking at this particular chart it would appear that this stock is headed up in the short term until it find ressistance at the rolling yearly high but this could be broken and go on to set a new ressistance level or fall short of making it to the present level of the yearly high.

Disq

[CatFish]

now thats worth a high five 55555555555555555555 disq. i want every one to post their take on support and resistance as i said these are the most important indicators imo and ones you should be able to see and understand at a glance. we can all learn from each other and that is what stockmarket cats is all about. again great post disq

[Disqplay]

I can actually pick the support and ressistance levels by just viewing charts. After purchasing Amibroker needed to learn how to program it to find stocks that I was interested which would meet certain criteria. I have a universe of 5286 stocks so really did not want to look at every chart everyday so I placed conditions that they had to meet inorder to qualify for consideration.

Cond price < 20.00
cond volume > 300,000 shares traded per day.
and several others

The point being that it will cull stocks that do not meet the conditions placed on the scan of the universe. This will give on the order of 5 or less stocks out of the entire universe that meet all of the conditions. It is at this point additional TA will be used to determine if the stock is a good canidate for entry. Volume and price moves are the overall key to selecting stocks using this method for me.

Thanks for the High 5555555555555's


Disq

[zekthecat]

Originally Posted by Disqplay

I can actually pick the support and ressistance levels by just viewing charts. After purchasing Amibroker needed to learn how to program it to find stocks that I was interested which would meet certain criteria. I have a universe of 5286 stocks so really did not want to look at every chart everyday so I placed conditions that they had to meet inorder to qualify for consideration.

Cond price < 20.00
cond volume > 300,000 shares traded per day.
and several others

The point being that it will cull stocks that do not meet the conditions placed on the scan of the universe. This will give on the order of 5 or less stocks out of the entire universe that meet all of the conditions. It is at this point additional TA will be used to determine if the stock is a good canidate for entry. Volume and price moves are the overall key to selecting stocks using this method for me.

Thanks for the High 5555555555555's


Disq

Disq,

What program are you using and can you tell what are all your conditions that you use?

Zekthecat

[Disqplay]

zekthecat if you look at the chart posted it clearly states the program is AmiBroker. I purchased the end of day version for $149.00 and get free end of day data from yahoo.com but will be going to premium data to have them keep up the information concerning splits and name changes. In any case this is the link to there site: http://amibroker.com/

As far as conditions for which the program is looking for they are as follows:

1) closing price of stock < 20.00
2) volume >= 300000
3) 1 day ago weekly low = monthly low = yearly low
4) Today weekly low > yearly low
5) volume 1 day ago <= volume today.

Also the line on the graph are automatically plotted by using plot statements.

Then it is just a matter of reviewing a few charts to determine the best one to plan an entry for the next morning. One thing to not I only enter on limit orders and I do put in place an initial stop loss incase the stock goes against me initially.

Disq

[Disqplay]

zekthecat you could also use Stockfetcher to perform the same search instead of Amibroker and the best part is that it is a free web bases scanner the above reply could almost be put into it as stated. The code for Amibroker is a little more involved so I put it into easy to understand language. Stockfetcher can be found at this url:

http://www.stockfetcher.com/

Disq

[zekthecat]

Originally Posted by Disqplay

zekthecat if you look at the chart posted it clearly states the program is AmiBroker. I purchased the end of day version for $149.00 and get free end of day data from yahoo.com but will be going to premium data to have them keep up the information concerning splits and name changes. In any case this is the link to there site: http://amibroker.com/

As far as conditions for which the program is looking for they are as follows:

1) closing price of stock < 20.00
2) volume >= 300000
3) 1 day ago weekly low = monthly low = yearly low
4) Today weekly low > yearly low
5) volume 1 day ago <= volume today.

Also the line on the graph are automatically plotted by using plot statements.

Then it is just a matter of reviewing a few charts to determine the best one to plan an entry for the next morning. One thing to not I only enter on limit orders and I do put in place an initial stop loss incase the stock goes against me initially.

Disq

Look at that..... Up in the left hand cornor it dose say Amibroker... Guess the long hours at work durning the night is cacthing up with me. Disq thanks for the information and I will look into it. I really don't like most free sites because the information in them are not as great as programs that you pay for but I will check out both of them.
Zek

[orange]

Originally Posted by CATFISH

we need suport and resistance threads here. i was going to do one today and they are a couple of the most important indicators. i would like someone new to charts to take the bull by the horns and find out what you can and post how they work and an example that you like and post it also. i found trying to teach others i learn the most so take the challenge. it will pay off for you alot more then anyone else.

LOL, CATFISH- i just stopped in to share this indicator i like and saw this thread so i guess it belongs here because it's abt support/resistance. it's called the Andrews Pitchfork. the calculation behind is kind of quantish and maybe that's why i like it. anyway, if you charting program doesn't have it, i got it on Amibroker (Disqplay has been waving Amibroker at me for months and it looks like i may buy it- thanks again, Disq ).

info on this because i can't find it on Amibroker yet i had to go here: http://www.gannalyst.com/Gannalyst_P...itchfork.shtml... Zeke- there's a trial version of Amibroker but it doesn't save your data. still, the download is pretty fast and you can read charts while the rest are downloading each day. also found a nice free one here http://www.cisiova.com but no pitchfork.

i backtested the amibroker pitchfork and works great. shows three support/resist lines and they ring true. :D