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My J-Hook's for this Week

 
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rkd998



Joined: 29 Apr 2006
Posts: 4

PostPosted: Sat May 06, 2006 10:50 am    Post subject: My J-Hook's for this Week Reply with quote

I've been working on screening profitable J-Hook patterns. Some have been profitable, some have not. I thought I'd post some results of today's screen to see what other members.

CVM, CELC, ISV, OTD, QD, FRG.

I was pleasantly surprised with DPW on Friday, bought early in the morning @ about 2.3, by the end of the day my return was > 20%. I also got burned last week with AFOP (bought on 5/1 when it was bouncing off the 50 DMA, then next day it gapped down when I thought it would be supported.)


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ChickenHawk



Joined: 24 Apr 2005
Posts: 247
Location: Houston, Texas

PostPosted: Sat May 06, 2006 2:44 pm    Post subject: Re: My J-Hook's for this Week Reply with quote

rkd998 wrote:
I've been working on screening profitable J-Hook patterns. Some have been profitable, some have not. I thought I'd post some results of today's screen to see what other members.

CVM, CELC, ISV, OTD, QD, FRG.

I was pleasantly surprised with DPW on Friday, bought early in the morning @ about 2.3, by the end of the day my return was > 20%. I also got burned last week with AFOP (bought on 5/1 when it was bouncing off the 50 DMA, then next day it gapped down when I thought it would be supported.)


rkd998 Confused


I was unable to bring up CELC on Stockcharts.com or TC2005, but have a few comments on the others.

First, some of these stocks do not fit into the definition of a J-Hook pattern and you may want to re-study. Also watch the volumes as a couple were too low.

AFOP
#1 - had a strong Bulllish Engulfing Candle, however it was negated the next day with a Bearish spinning top followed by a Doji with Stochastics in a downtrend. This should have alerted you that the downtrend is not over.

#2 - The next two Spinning Tops on the 50MA were not a candle signal or pattern (note that there is no Bullish Engulfing signal). However, on that particular day it appears the Stochasics were starting to turn. If you Bought on the second Spinning top (anticipating a reversal) your stop might have been placed at the low of the first spinning top to minimize the loss.

#3 - Tue,Wed,Thu continued the downtrend, with relatively large volume, followed by a Bullish Harami on Friday. This may indicate the selling has stopped with the buyers stepping back in and ready for a reversal. An entry point may be 1.79-1.80 for an uptrend on good volume.


Chart courtesy of StockCharts.com

ISV
Not a Candle pattern for the Spinning top or Doji Exclamation

Volume is low and Stochastics still in a downtrend.


Chart courtesy of StockCharts.com

OTD
Stochastics turned, but there is no Buy signal - No Bullish Engulfing or Bullish Harami to indicate the selling has stopped.


Chart courtesy of StockCharts.com

QD
Stochastics still going down with no Buy signal..Note the Bearish Engulfing that negated the Bullish Engulfing signal.

Volume is extremely low and there is no candle Buy signal.


Chart courtesy of StockCharts.com

FRG
The spinning top is not a Candle Pattern Buy Signal.

Stochastics may be flattening out but may continue the downtrend towards the 50MA.


Chart courtesy of StockCharts.com
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rkd998



Joined: 29 Apr 2006
Posts: 4

PostPosted: Sat May 06, 2006 4:00 pm    Post subject: Reply with quote

Chickenhawk,

Thanks for the review. I had a typo on CELC, should have been CLEC.

I find it difficult to always wait for buy signal, as when the buy signal occurs, price (sometimes) has already jumped and the risk/reward ratio becomes unfavorable. (I'm a swing trader, and can only monitor my positions during the evenings, not during the day.) If I could get a buy signal, I'd take it. Sometimes all I get are good support levels (horizontal movement of price).

I did not understand the comment "some of these stocks do not fit into the definition of a J-Hook pattern". Attributes of a J-Hook pattern as I understand them are as follows:

1) Starts with a strong uptrend,
2) Reversal caused by profit taking,
3) Declining trajectory of the pullback,
4) Continuation of the Uptrend

AFOP was a trade that went against me last week. I picked it up on 5/1 looking for support at the 50 DMA, and was out on 5/2 when it gapped down thru the 50 DMA.

I believe that CLEC, CVM, FRG, ISV, OTD and QD all fall into step #3 above. (Some fit better into step #3 than others.) Step #4 may or may not have begun for any of these stocks (difficult to tell for ISV and QD until additional up days show themselves). It's a challenge to follow Ricky Wayne's approach to "buy at the belly" when you can't tell you're at the belly until the belly shows itself in the past.

The scan was performed with "200<=Volume 90-Day<=Max" in TC2005. What type of volume parameters do other users use?

Again, thanks for the input,
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KarlaF



Joined: 27 Oct 2004
Posts: 25

PostPosted: Wed May 10, 2006 9:22 am    Post subject: Reply with quote

chickenhawk,

i have to admit that this was one of the best explanations on this board.
everyone could have learned something. not only with word but also with charts.
great
karla
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Harry



Joined: 11 Jun 2005
Posts: 128
Location: midwest

PostPosted: Wed May 10, 2006 9:16 pm    Post subject: buy at 6.40 Reply with quote

FRG is the best one of all the charts tonight. Any thing above 6.36 would be a buy. Watch for the deep pockets out there. They are selling into every breakout trying to run the stocks down at least 5% to take out most of the stops. Good luck.
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russjackel



Joined: 16 Sep 2005
Posts: 59
Location: niantic ct

PostPosted: Wed May 10, 2006 11:29 pm    Post subject: rkd998 Reply with quote

i also tend to be a swing trader most of the time. but followincandles for g the swing trading seems to work fime and give plenty of early signals when a stock is trading in an uptrend why risk that it might turn around. I am pretty mew at this and find chickenhawks advise very helpful as he/she seems to know what is going on. I have been quite succesfull using candles to get in the right stocks at the right time just seem to exit to soon. The picks you had for j-hooks seem to me to still be in a downtrend better to buy higher when buyers are already coming in. jmo
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Harry



Joined: 11 Jun 2005
Posts: 128
Location: midwest

PostPosted: Sun May 21, 2006 1:51 pm    Post subject: looking better Reply with quote

Smile CLEC looks like a go for in the morning. I think I will pick up a few thousand in the morning with a very tight stop. The volume is low but at least it has been above 100,000 the last couple of days. It has also cleared all the moving averages.
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