STRATEGY FOR GOING LONG:
I've heard as prices approach a major moving average, they can break out if they cross over a moving average (going long). Please check out the graph for INTU below.
A double bottom (orange circle) was formed prior to INTU crossing the 25 Day MA. When it crossed the 25 day MA (white circle), it continued up.
According to http://finance.yahoo.com, 1400 institutions own this stock. I am making an assumption that when a stock crosses over a moving average, institutions may start to buy (cash flowing into the stock), thus driving the price up.
The stragegy: Place a buy order 12-25 cents above the moving average usint a stop. Rather than chase the stock up (it could reverse as it approaches the MA thus not triggering my order), if I place the buy just above the MA, the liklihood is it may continue to go up for a period. This way, the stock "chases" me. When it is filled, immediately place a stop below the moving average in case it goes against me.
QUESTION: I'm using Metastock. I'd like to write an explorer to try and locate these patterns prior to the price crossing the MA.
I can't seem to find a statement anywhere in Metastock's manual that will allow me to write a WHILE NOT or IF THEN statement that will allow me to find the W pattern a certain percentage below a moving average.
Something like If today's close is higher than yesterdays close, then if yesterday's close....else...if yesterday's close was less than ....
or
while not today < yesterday and yesterday not < xMA x .90
Does anyone have any suggestions?
Thanks,
Chris
<hr>
<img src="http://www.colvin.net/stocks/intu.jpg">
I've heard as prices approach a major moving average, they can break out if they cross over a moving average (going long). Please check out the graph for INTU below.
A double bottom (orange circle) was formed prior to INTU crossing the 25 Day MA. When it crossed the 25 day MA (white circle), it continued up.
According to http://finance.yahoo.com, 1400 institutions own this stock. I am making an assumption that when a stock crosses over a moving average, institutions may start to buy (cash flowing into the stock), thus driving the price up.
The stragegy: Place a buy order 12-25 cents above the moving average usint a stop. Rather than chase the stock up (it could reverse as it approaches the MA thus not triggering my order), if I place the buy just above the MA, the liklihood is it may continue to go up for a period. This way, the stock "chases" me. When it is filled, immediately place a stop below the moving average in case it goes against me.
QUESTION: I'm using Metastock. I'd like to write an explorer to try and locate these patterns prior to the price crossing the MA.
I can't seem to find a statement anywhere in Metastock's manual that will allow me to write a WHILE NOT or IF THEN statement that will allow me to find the W pattern a certain percentage below a moving average.
Something like If today's close is higher than yesterdays close, then if yesterday's close....else...if yesterday's close was less than ....
or
while not today < yesterday and yesterday not < xMA x .90
Does anyone have any suggestions?
Thanks,
Chris
<hr>
<img src="http://www.colvin.net/stocks/intu.jpg">