How would you use a 52 week high/low stocks to trade.

[pineman]

Any ideas would be helpful...such as if a stock hit a 52 week high ( closing), now if the security was up for the last 5 days, no major news such as a take-over, then would you look for a short, hit and run, then watch back to go long, etc.


Any proven methods that have worked in the past would be appreciated.


Thanks,
Pineman

 

[colonelangus]

i am guessing you are meaning a 52 "week" high as 52 days seems so arbitrary?
in general, if it hits a 52 week high without any significant news, i am buying it as it has broken through resistance even if it has been up for 5 days and especially, if it is showing good RS, like if it hit a new high in today's down market. like check out WDC, when it was on a 10 tear last May, hit a new high, pulled back a point or two but then went up another 6 points over the next 2 weeks. whatever you are looking at might pull back but hey, why fight the trend.
also might check on any serious insider buying recently whilst of course, it is ILLEGAL for them to be buying on any news they may know...well, if the powers that be in the company are optimistic
good luck dude

 

[colonelangus]

Quote from pineman:

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Any proven methods that have worked in the past would be appreciated.


[/B]

oh and sorry, know of no iron clad "proven" methods for anything in these markets, just playin' the probabilities