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Saturday, August 29, 2009

Tired Of Losing Money With Stock Charts? Secret Trading Algorithm Revealed

By Sarah Munsun

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 have used this to make a lot of money and now I'm going to tell you exactly what the algorithm is.

Now you might be thinking how a formula this valuable can be given away free. Simple. I want you as a regular reader of my free blog. I figure if I can help you make a ton of cash you'll become a subscriber. That sounds 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.

Now we need to determine if the stock is above the 20 day MA. If it is, keep reading.

In this step, we need to look at the previous week of trading and then 2 weeks before that. If the stock hit a 3 week high in the last week of trading, that is excellent, keep reading. If not, say goodbye to the stock and start over again with another stock.

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

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