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> From: ALTAF JUMMA <ASHLEYJUM@xxxxxxxxxxxxxxxx>
> To: jghutchison@xxxxxxx
> Subject: Re: Cooper - Reply to Jack Hutchison
> Date: Wednesday, February 11, 1998 11:22 AM
>
> you wrote,
> >>My SuperCharts(home) and TradeStation(office) generate a hot list from
the
> >>ChartScanner from a database of ~400 actively traded stocks heavily
> >>weighted in NASDAQ tech issues. I generally receive 10-30 candidates
each
> >>nite.
> >>
> >>I first review each chart on SuperCharts and plot the Fibs on promising
> >>charts. I note the promising candidates, and search the news on each
the
> >>following morning before the opening. Next, I log on to the Net to
> >>
> >>
> >>Hi Jack,
> If it is possible, can you send me the tradestation code for the range
> expansion and 50 day moving average setup to isolate and generate hot
list
> of stocks. I am thinking of using it for option and stock trading, but I
am
> not very good with setting up systems.
> Do you make a living out of trading stocks? It is not easy but it beats
> working for somebody else. I lived in Houston for 3 years, at present I
am
> in Miami.
> Happy Trading,
> Asif
>
> >>
> >>
> >>
> >
Realtraders,
I've had a number of request to expand on my earlier posts, so here goes...
The price crossover the 50 day moving average is self explanatory, and is
often used by heavy duty money managers who are more likely than not to be
trend followers. They just don't like to stick their necks out on
countertrend entry or exits. This is the herd mentality.
The range breakout is typically a quite period when a stock consolidates,
followed by a rapid move up on increasing volume, and daily range, often
with the stock closing in the upper half of its daily range. Bollinger
Bands often indicate the quiet period by pinching the envelope.
A stock fullfilling the above criteria will often gap up (down) the
following day. Is is any wonder?
The SuperCharts code for a ShowME is quite simple and follows the above
logic.
If (Low < XAverage(Close,50) and High > XAverage(Close,50) and (Close >=
0.6 * Range + Low) and Close > XAverage(Close,50) and High >
Highest(High,4[1])
then place mark on High
You may also want to add a filter for volume increase over a threshold
value such as the monthly average.
I set a red flag on the Highs for breakouts and on the Lows for breakdowns
(reverse the above code) and enable the Alerts.
Pop the indicator on any chart along with a 50 day XAverage and daily
volume and view the results. Seeing is believing.
P.S.
Send $2500 to the following address...
Yankee Trader
Houston, TX
Gary Fitz also asked about buying Cooper's book. My response is $50 is a
cheap investment, go for it, buy lots of good books. Maybe you will pick
up some good ideas that fit your trading style. Think of the money you've
blown on paying some sales rep for hyping the stock du jour. Do your own
homework and it will eventually payoff.
And yes, I trade for a living.
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