Make Money With Action Candles
Stockscores.com Perspectives for the week ending March 14, 2014
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| Upcoming Events |
Calgary, Vancouver, Surrey
Calgary April 3 and 5
Vancouver April 12
Surrey April 15
Details and register, Click Here.
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In this week's issue:
Stockscores Market Minutes Video
In this week's Market Minutes video, I show what an Action Candle is and how they are useful for finding strong stocks for position and swing trading. Watch the video by clicking here.
Upcoming Events
Almost all of the stocks featured in this newsletter in 2014 are profitable including T.BLD up 120%, T.LSG up 65%, T.SMF up 50% and T.KGI up 20% in only weeks. At the Stockscores presentations in April, I will show what I look for in stocks and how to find them. These presentations are free to attend and my broker, Disnat, has purchased copies of my book to give to the first 500 registrants who attend.
Calgary April 3 and 5
Vancouver April 12
Surrey April 15
A Webinar for those not in these areas will be scheduled soon
For details and to register now, Click Here.
Action Candles
What does it take for a stock to go up quickly? That is a question that every trader should be able to answer. In order to make market beating profits, we have to be able to find market beating trends in stocks. Most market beating stocks start their trends in the same way.
With an Action Candle.
A price candle is a way of representing the price change over a certain time period. An Action Candle is something that I created to find the price action that is important. They occur when there is an abnormal price gain with abnormal volume. Action candles from a predictive chart pattern are good indications that a stock is going to go in to an upward trend.
During the trading day, I look for action candles on the intraday chart. For longer term position trades, I look for them on the daily chart.
It is essential that these strong price candles surprise the market. I want to see a situation where investors show little interest in the stock but then take a big interest as the stock jumps in price on strong volume. Provided there is optimism in the chart and a break through resistance, I buy these stocks. I am jumping on the bandwagon, using the abnormal activity as my cue as I follow the people that have the best information on the company.
It is a simple concept that can be applied using the Stockscores Market Scan tool for position trading or Tradestation with my indicators for swing trading. This week's Market Minutes video shows what to do.
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It was a pull back week for the overall market as investors took profits, particularly on the US listed stocks. The Canadian market held up better as mining stocks continue to show strength. This week, I scanned the market for stocks that made good gains this week and then inspected the longer term, 3 year chart for good chart patterns. Here are some stocks to consider:Back To Top
1. T.ANV
T.ANV has made good gains already this year but relative to the past couple of years, this is just the start of a comeback. Support at $5.80.
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2. SIMG
SIMG has recently broken out of a lengthy ascending triangle patter on the weekly chart and continues to build optimism for a longer term trend. Support at $5.90.
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References
Get the Stockscore on any of over 20,000 North American stocks.
Background on the theories used by Stockscores.
Strategies that can help you find new opportunities.
Scan the market using extensive filter criteria.
Build a portfolio of stocks and view a slide show of their charts.
See which sectors are leading the market, and their components.
Disclaimer
This is not an investment advisory, and should not be used to make
investment decisions. Information in Stockscores Perspectives is often
opinionated and should be considered for information purposes only. No
stock exchange anywhere has approved or disapproved of the information
contained herein. There is no express or implied solicitation to buy or
sell securities. The writers and editors of Perspectives may have positions
in the stocks discussed above and may trade in the stocks mentioned. Don't
consider buying or selling any stock without conducting your own due diligence.
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