KSK8
561 posts
msg #148990
- Ignore KSK8 |
8/25/2019 12:58:45 AM
This is something I stumbled across while doing some experimenting and the premise behind it has sparked my curiosity.
The h0 line crossing above the ema(15) gives the price a strong tendency to reverse the day after. It's as if this is the perfect indicator to determine if a stock is overextended. The caveat is that it's rare in occurrence and only exists with stocks under $10 mainly.
Still, I would like to see if anyone has an explanation for this phenomenon as I do not, but I intend to aggressively start capitalizing off of it once I understand it.
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SFMc01
358 posts
msg #148994
- Ignore SFMc01 |
8/25/2019 6:57:44 PM
BENZINGA: "Fuwei Films (Holdings) Co (NASDAQ:FFHL) reported quarterly earnings of $0.04 per share. This is a 110 percent increase over losses of $(0.4) per share from the same period last year. The company reported $12.836 million in sales this quarter. This is a 6.71 percent increase over sales of $12.029 million the same period last year."
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KSK8
561 posts
msg #148995
- Ignore KSK8 |
8/25/2019 7:19:19 PM
Look at the past 100+ stocks the filter has yielded. If you glance at the plot you'll notice the blue line seems like it can never sustain itself above the red line and consequently the price pulls back /or reverses the subsequent day 80-90% of the time.
The interaction of those 2 lines may have the potential of being utilized into a killer short signal.
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mahkoh
1,065 posts
msg #149006
- Ignore mahkoh |
8/28/2019 4:21:44 PM
In order for the stock to satisfy the condition of the filter it must shoot up at least some 80 %. This typically only happens to trash pennystocks..
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SFMc01
358 posts
msg #149171
- Ignore SFMc01 |
9/18/2019 11:34:43 AM
KSK8: Respectfully, which filter did you use that identified "YI" as a short? Thank you for your various inputs.
Steve Mc
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KSK8
561 posts
msg #149172
- Ignore KSK8 |
9/18/2019 11:55:47 AM
SFMc01,
More times than not, whenever price opens below the Lower EMA envelope (length of 50 and % of 10) in conjunction with its price closing above its Upper EMA envelope (length of 50 and % of 10), it will usually snap back since its price is technically overextended hence yielding a nice short opportunity.
But obviously this criteria doesn't occur too often so when it showed up for YI on September 10th, I was enticed to take the trade.
Unfortunately, its fundamental catalyst was apparently strong enough to print higher highs which allowed it to avoid this tendency to snap back.
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SFMc01
358 posts
msg #149173
- Ignore SFMc01 |
9/18/2019 3:27:13 PM
Thanks KSK8. I guess my question should have been "what led to your selecting "YI" in the first place"
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