Beyond Stock Charts And Into Secret Trading Algorithms
I'm going to do something that is unheard of in stock chart and market analysis. I'm going to tell you exactly what I look for in a stock and how I find picks for one of the most popular stock blogs on the Internet.
This secret algorithm I'm about to reveal beats the pants off just using technical analysis to read stock charts.
In fact, I learned this method from a top secret artificial intelligence algorithm that has produced returns in excess of 1,000% annually known only to a few inner circle stock market club members.
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.
I'm giving you this for free because I'm hoping you make a lot of money from this and become a regular reader of my articles. I think 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 step in this algorithm is to look at the previous day's close and the last hour of trading. If the stock closed above the 5 hour MA go on to the next step. If it has not, throw out the stock and start over again with a new stock.
In this step we must look at the stock's 3 day high. If it is at a 3 day high, you can keep reading the next step below. If not, you need to ditch the stock and start over again with another stock.
The next step is to determine of the last price of the stock was above its 20 day MA. If it is, move on.
The next component in this formula is if the stock has hit a 3 week high in the last week (the previous full week of trading). If not, reject the stock and start over.
The final component in this formula is if the stock has hit a 3 month high in the last month (the previous full month of trading). - 23208
This secret algorithm I'm about to reveal beats the pants off just using technical analysis to read stock charts.
In fact, I learned this method from a top secret artificial intelligence algorithm that has produced returns in excess of 1,000% annually known only to a few inner circle stock market club members.
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.
I'm giving you this for free because I'm hoping you make a lot of money from this and become a regular reader of my articles. I think 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 step in this algorithm is to look at the previous day's close and the last hour of trading. If the stock closed above the 5 hour MA go on to the next step. If it has not, throw out the stock and start over again with a new stock.
In this step we must look at the stock's 3 day high. If it is at a 3 day high, you can keep reading the next step below. If not, you need to ditch the stock and start over again with another stock.
The next step is to determine of the last price of the stock was above its 20 day MA. If it is, move on.
The next component in this formula is if the stock has hit a 3 week high in the last week (the previous full week of trading). If not, reject the stock and start over.
The final component in this formula is if the stock has hit a 3 month high in the last month (the previous full month of trading). - 23208
About the Author:
Before you spend the time doing this manually, there is an Artificial Intelligence stock chart screener that can scan over 20,000 stocks in 5 seconds. For more information go to Lance Jepsen's blog at stock chart
posted by X - Men @ 1:41 AM
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