I want to buy stocks just as they breakout so what technical indicator(s) can i use to pick stocks breaking out??
Chosen Answer:
Technical indicators you could look at could be things like ROE and ROA growth, EPS growth. If they are growing quickly and better than industry averages then chances are that the firm’s stock are undervalued. However, for every one Microsoft there are thousands of firms that do not make it.
One tip I have learned is that volume always tells the truth. If the stock moves up or down and the volume doesn’t increase then it is probably a “head fake” (meaning that the stock will rebound in the opposite direction soon).
by: mjr072984
on: 14th April 09
Technical indicators you could look at could be things like ROE and ROA growth, EPS growth. If they are growing quickly and better than industry averages then chances are that the firm’s stock are undervalued. However, for every one Microsoft there are thousands of firms that do not make it.
One tip I have learned is that volume always tells the truth. If the stock moves up or down and the volume doesn’t increase then it is probably a “head fake” (meaning that the stock will rebound in the opposite direction soon).
I use Stochastic with parameters set at: Period=14 %k=3 and a moving average of: Period=5 Offset=0
When the oscillator crosses up from the 20 level and crosses the moving average, that is a bullish signal. Conversely when the oscillator crosses down from the 80 level and crosses the moving average, this is a Bearish signal.
After reading your question. I would suggest your answer would come to you by learning to pick stocks, place an amount you would like to risk, project a sell target,date of when you will sell it.
There are no indicators that’s can see into the future, you must learn to understand how to make wise choice and do not let greed make them for you.
Start with the Parabolic, when the RSI points you to the moon, strap your self to the missile of money and remember to jump off before there is no oxygen to fill the lungs with.
Don’t lose your money learning.