I don't just use stock charts for my analysis. I'm going to spill those proverbial beans and show you how I find the incredible stocks for a very popular stock blog.
This secret algorithm I'm about to reveal beats the pants off just using technical analysis to read stock charts.
I'm part of an exclusive stock club that gave me this algorithm. Make no mistake, this algorithm is very powerful and can produce annual returns in excess of 1,000%!
This ground breaking algorithm gives any computer an almost spooky ability to analyze a stock better than a technical analyst reading a stock chart! Many years ago, software programs used statistics and models for returning buy and sell signals. But this secret algorithm is way more advanced. It's like have 50 analysts inside your computer giving you their opinions on any stock you want!
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 component in this formula is to determine if on the previous day, in the last hour of trading, the stock closed above the 5 hour MA. If it has, move on to the next component in this killer formula. If not, reject the stock and start all over again until you find a stock that does.
Now in this next step, we need to see if the stock is trading at its 3 day high. If it is, read the next step below. If not, you know how this goes, get rid of the stock and find another one and start all over again.
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.
The next step is to see if the stock, during the previous week of trading, hit a new 3 week high. If it has, keep reading. If not, you know the drill, toss the stock out and find a better one.
In this component of the algorithm, we must look at the previous month of trading and then 2 months before that. What you need to determine is if the stock, during the previous month, hit a 3 month high. If it has, now that's a stock! If it has not, you must let the stock go and find another stock and repeat this process over again.
This secret algorithm I'm about to reveal beats the pants off just using technical analysis to read stock charts.
I'm part of an exclusive stock club that gave me this algorithm. Make no mistake, this algorithm is very powerful and can produce annual returns in excess of 1,000%!
This ground breaking algorithm gives any computer an almost spooky ability to analyze a stock better than a technical analyst reading a stock chart! Many years ago, software programs used statistics and models for returning buy and sell signals. But this secret algorithm is way more advanced. It's like have 50 analysts inside your computer giving you their opinions on any stock you want!
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 component in this formula is to determine if on the previous day, in the last hour of trading, the stock closed above the 5 hour MA. If it has, move on to the next component in this killer formula. If not, reject the stock and start all over again until you find a stock that does.
Now in this next step, we need to see if the stock is trading at its 3 day high. If it is, read the next step below. If not, you know how this goes, get rid of the stock and find another one and start all over again.
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.
The next step is to see if the stock, during the previous week of trading, hit a new 3 week high. If it has, keep reading. If not, you know the drill, toss the stock out and find a better one.
In this component of the algorithm, we must look at the previous month of trading and then 2 months before that. What you need to determine is if the stock, during the previous month, hit a 3 month high. If it has, now that's a stock! If it has not, you must let the stock go and find another stock and repeat this process over again.
About the Author:
Before you waste the time doing this manually, there is an automatic stock screener that will scan over 20,000 stocks in 3 seconds. For more information go to Lance Jepsen's blog at stock chart
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