So I just read „Insider buy Superstocks” by Jesse C Stine. A story about making $46k into $6,8MM (14.972%) over 28 months. I can recommend it to anyone. The author used consistently a mix of TA and FA that I'll try to highlight in this thread.
google.com/url?sa=t&rct=j…
google.com/url?sa=t&rct=j…
This time I'll discuss TA conditions. He had 8 of them out of which 5 had to hold (and remaining 3 were advisory) to make a decision. I'll discuss them point by point. Setting was stocks market but can apply them in crypto (shh... you can get book here gen.lib.rus.ec)
1. Breakout from strong base.
A (very) long consolidation period needs to happen. They can make some investors think that the stock is boring and to stay that way for another few months/years. Or even that the company is trash.
A (very) long consolidation period needs to happen. They can make some investors think that the stock is boring and to stay that way for another few months/years. Or even that the company is trash.
2. Breakout above 30-week WMA (weighted not SMA).
He claims that 90% of stocks from his 28-months long journey were oscillating around WMA. Sometimes closing above, sometimes below, but for this condition to be fulfilled you need a strong breakout sign above it.
He claims that 90% of stocks from his 28-months long journey were oscillating around WMA. Sometimes closing above, sometimes below, but for this condition to be fulfilled you need a strong breakout sign above it.
3. Volume expansion.
The reason should be clear. And it is easily visible on the chart in point 1.
The reason should be clear. And it is easily visible on the chart in point 1.
4. High angle of attack.
When interest in stock increases and the market is particularly shallow, institutions buy stocks aggressively. Hence prices grow steadily in a trend of at least 45 degrees. The art here is to spot this trend early enough.
When interest in stock increases and the market is particularly shallow, institutions buy stocks aggressively. Hence prices grow steadily in a trend of at least 45 degrees. The art here is to spot this trend early enough.
5. A price below a threshold.
You need sufficiently big room for prices to grow hundreds of precents. Hence prices needs to be low enough. He gives some estimates that one can apply to stocks setting, but you can replace them for example by a marketcap in crypto.
You need sufficiently big room for prices to grow hundreds of precents. Hence prices needs to be low enough. He gives some estimates that one can apply to stocks setting, but you can replace them for example by a marketcap in crypto.
6. Nice, clean chart.
In other a chart that doesn't act to news in an erratic, impulsive way. Such stocks are unpredictable. No rapid drops in a single session but rather steady declines for weeks. It gives whales enough time to exit and is devastating for morale of dumb money.
In other a chart that doesn't act to news in an erratic, impulsive way. Such stocks are unpredictable. No rapid drops in a single session but rather steady declines for weeks. It gives whales enough time to exit and is devastating for morale of dumb money.
7. Prior momentum.
A big bull run in past is a plus, since one can be sure that the stock is recognizable by traders and triggers lots of emotions and past memories that could result in another run.
A big bull run in past is a plus, since one can be sure that the stock is recognizable by traders and triggers lots of emotions and past memories that could result in another run.
8. Is it respecting magic line?
It should consistently respect a moving average trendline. The author suggests 10 WMA but it is a subject of some experimenting. I'd encourage you to look it up in the book.
It should consistently respect a moving average trendline. The author suggests 10 WMA but it is a subject of some experimenting. I'd encourage you to look it up in the book.
That's all for TA reasons. Let me know if you liked it, then next time I'll discuss his FA conditions. There is also a sort of 0th condition here: you must come up with a system that is verifiable over time and stick to it to check its performance. Don't trade solely emotions.
