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Tools I use to help decide when to buy and sell.


One of the technical tools I use to help me decided when to buy and sell is the Stochastic Oscillator.

"In technical analysis of securities trading, the stochastics oscillator is a momentum indicator that uses support and resistance levels. Dr. George Lane promoted this indicator in the 1950s. The term stochastic refers to the location of a current price in relation to its price range over a period of time. This method attempts to predict price turning points by comparing the closing price of a security to its price range."

Source wikipedia
for more detailed info go to http://en.wikipedia.org/wiki/Stochastic_oscillator


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Following is a partial list of stocks I am currently following/trading.
The stochastics info needs to be updated throughout the day as each trade affects the direction.


Once a stock enters the bear 20 range I get interested and jump in as soon as it turns bullish.

I will trade it all the way up to bullish 80. Higher than this its in the overbought territory and can easily turn bearish and the sell orders overtake.

This morning I sold EGM, GPS, KBG, and SML
Bought PRR

Also a stock turning bullish mid-way will catch my attention.

Even though this tool helps me make decisions, I still get caught with duds.


Following is an Excel sheet I update for keeping track. 
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Stochastic Oscillator
18-Jan-10
aat bull 100
abr bull 35
agq bull 70
akv bull 80
abr bull 35
agq bull 70
akv bull 80
arr bear 30
atv bull 90
azx bull 40
bm bear 35
bmk bull 85
cgd bull 100
chu bear 50
cld bear 50
cth bear 20
chx bull 50
cro bear 25
egm bull 70
fom bull 30
frx bear 55
fvr bull 65
ggl bull 50
gps bull 65
hlo bull 70
jrn bull 65
kbg bull 70
knp bull 70
lgo bull 45
nai bear 45
prr bear 30
pxr bull 30
rgz bull 65
sml bull 65
uuc bull 75
van bull 30
vr bear 40
wm bull 80


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Related Post:

Why I trade penny stocks part 6

Why I trade penny stocks part 8

Why I trade penny stocks part 10

Why I trade penny stocks Part 11
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Thanks for checking out my page. Red Mars

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