Technical Analysis DOES work.

You have a nice set of lower lows and lower highs that would make it a decent short.

You also have a head and shoulders formation along with a 200SMA coming up from below.

I don't know how it will react to the 200, but if I had to trade it, I would go short above 41, set a stop at 46 which corresponds to the last high and where you would place a stop if you were trading the h&s. I would take 1/2 the trade at . the August lows. If it takes that out then I'd cross my fingers for a fall back down to the monthly trendline connecting the lows.... Initially, that's a 1:1 risk reward. If it hits the first target, it's a free test to see if it can go all the way down.

Just thoughts....
 

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DTK I see you are probably using TC2000.

You mentioned better stocks out there to trade.

What type of stocks are you looking for and can you share some of your thought on scans.

Thanks, Mike
 
Quote from oddiduro:

Bollinger trades are supposed to be held until the tag of the upper band, I believe.
More...
That's one of the three methods espoused in the Bollinger book, but in the other ways of utilizing the bands, he also says that a tag of the upper band does not necessarily signal an exit, but rather, a continuation, and to see if the close occurs outside of the band for a portent of strength, also that a price may run up yet stay alongside of the upper band, just skirting it as it does.

That's of course in the event that the stock runs up in the first place.

A close crossing from inside to outside of the lower BB in the course of an overall downtrend more probably signifies a short. MIK closed at its lows. It's almost at the lows of late September. And it did find resistance at the 50 MA, where it's below it currently as it heads down to the 200 MA level. Volume also has been heaviest recently whenever price declines.

Of course, that's when the smart money may now be stepping in to accumulate the stock, if there's a reason to accumulate the stock. The current quarter earnings estimate was just decreased, and EPS estimates for '05 aren't at '04 levels, so perhaps the stock isn't as attractive right now as it has been.

Friday's volume, though about average, was less than for the other recent declines, and follows Thursday's peak volume selloff. That suggests that the last wave of the distribution may be over for the time being or very close to it, but does not in itself indicate an immediate uptrend will follow, as the stock could now go sideways. If you're interested in MIK, for better probabilities you'd want to at minimum monitor the stock for price reversal with volume increasing.
 
>Bollinger trades are supposed to be held until
>the tag of the upper band, I believe.

You might want to program that and backtest it on a few million candles. Might be surprised.

JB
 
Yup.
For my purposes, there really aren't any other programs that beat the software that those Worden Brothers have...
"better stocks to trade" to me meant better risk reward scenarios.

Scans are great. If you go to the following Yahoo group, you will find lots of fantastic information for the software.

http://groups.yahoo.com/group/Telechart2000_Users/


Quote from kowboy:

DTK I see you are probably using TC2000.

You mentioned better stocks out there to trade.

What type of stocks are you looking for and can you share some of your thought on scans.

Thanks, Mike
More...
 
Quote from DTK:

Yup.
For my purposes, there really aren't any other programs that beat the software that those Worden Brothers have...
"better stocks to trade" to me meant better risk reward scenarios.

Scans are great. If you go to the following Yahoo group, you will find lots of fantastic information for the software.

http://groups.yahoo.com/group/Telechart2000_Users/
More...

and also here you can find hundreds of scans ideas for tc2000
http://www.tradeon.com/tradeon/
 
The advance scanning workshop for tc2000 conducted by Worden brothers is also very good. They give you a booklet with it which is very helpful. It has many scan ideas.
 
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