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Using Buy Indicators

  • Check stock's metrics (data sheet)

  • Confirm metrics (stock's graph)

  • Confirm next Closes > High of PVL

  • RSI Oversold? (<30)

  • Any Bottom Triangles?

  • Any Double or Triple Bottoms?

  • Bolters (Swing Trading)

  • Is the trend rising?

  • Retracements

It is clear from the number of Buy Indicators available you need a system,for individual stocks, to identify them, and prioritise them with timings and prices (the stock's metrics).

Check stock's metrics (data sheet)

In the Abuelo System this is achieved by extracting the latest data from the individual stock's Data Sheet in Excel.​

Here is a snapshot example from ASX:BVS.

stock sheet extract 19dec.jpg

Confirm metrics (stock's chart)

While this seems an obvious need, it requires some fairly complex Excel formulae to identify the latest indicator occurrences, for example, of the Close crossing above the 5 day Moving Average or above the 15 day MA which can be confirmed from the chart below. There are a couple of strong Close cross ups on 18 December, over the 5 day MA and the 15 day MA.

BVS MAs 19dec.jpg

  • Check stock's metrics (data sheet)

  • Confirm metrics (stock's graph)

  • Confirm next Closes > High of PVL

  • RSI Oversold? (<30)

  • Any Bottom Triangles?

  • Any Double or Triple Bottoms?

  • Bolters (Swing Trading)

  • Is the trend rising?

  • Retracements

Confirm next Closes > High of Pivot Low

We can also confirm the strength of the rise from the Close Pivot Low by comparing the following Closes against the High of the PVL.

In this case, the CPVL is a Doji (Open and Close very close together).

Note also the CPVL is the low Close not the Low of the candle.

CPVL confirmed 19dec.jpg

RSI Over Sold? (<30)

An asset is traditionally considered oversold when its RSI reading drops below 30. Traders typically look for more than just the number 30; they look for confirmation that the momentum is actually shifting.

In a strong uptrend, an RSI dip to 30 is often a "buy the dip" opportunity. In a strong downtrend, an oversold RSI might just be a pause before further drops.

RSI over sold 20dec.jpg

  • Check stock's metrics (data sheet)

  • Confirm metrics (stock's graph)

  • Confirm next Closes > High of PVL

  • RSI Oversold? (<30)

  • Any Bottom Triangles?

  • Any Double or Triple Bottoms?

  • Bolters (Swing Trading)

  • Is the trend rising?

  • Retracements

Bolters (Swing Trading)

If we want to trade fast moving stocks we can rank them, in the Abuelo System, by gains from today and monitor what happens over the next couple of days.

Having made about 9% in 5 days buying APX on 19 Dec, the Swing Trader must be ready to take profits. As the saying goes "You can't go broke taking a profit!".

bolters.jpg

I need to add a table here for APX profit

  • Check stock's metrics (data sheet)

  • Confirm metrics (stock's graph)

  • Confirm next Closes > High of PVL

  • RSI Oversold? (<30)

  • Any Bottom Triangles?

  • Any Double or Triple Bottoms?

  • Bolters (Swing Trading)

  • Is the trend rising?

  • Retracements

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