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These days, most expert traders and investors draw stock charts, read stock
quotes, and follow financial news on their computer screens. Market
professionals also use various software for trading and investment analyses.
Internet sites such as Tradetrek.com provide essential online tools for
stock quotes, news, research, and simple technical analyses.
Average stock traders, professional or independent, sit at their screens during
trading hours, monitoring financial news, examining stock charts,
considering all possible trade opportunities. Investors may decide
to buy or sell a stock based on a news tip, a grapevine rumor, or on the
discovery of a stock showing a typical buy or sell technical pattern. Often
they will sit before their screens for many hours without executing any trades,
because good picks are hard to find, especially without a systematic search method!
Conventional trading software may let users search for stocks that meet a certain
number of criteria, such as specifications of price, volume, and other indicators.
However, those tools usually ask the users to input their own search criteria.
Unfortunately, most users do not really know what conditions will lead to reliable
trading signals. Worse still, because these search tools are too simplistic, they
won't yield stocks with the desired pattern except by chance, no matter what
search criteria they input.
Live Technical Stock Search
The remarkable news is that Tradetrek.com has designed much sharper
investment instruments than undependable traditional ones! To find stocks
displaying "ideal" chart patterns, we have pioneered a powerful set
of pattern- recognition and pattern-search methodologies. Applying these
methods and algorithms at five-minute intervals, Tradetrek runs a computer
program that goes through all the liquid stocks traded on the NYSE, AMEX and
NASDAQ markets to detect all the desired stock patterns. All the examples in
the Technical Trading Strategy chapter were found by such Tradetrek stock searches run during actual
trading hours. We present each stock found by using our IntelliChart on
Tradetrek's Trade Panel. The IntelliChart shows stock charts
in the various modes (line chart, bar chart, candlestick chart)
using many popular indicators (volume, Bollinger Bands, K/D, RSI and MACD). IntelliChart
also draws auxiliary lines (such as support lines, range lines, sides of triangles)
and stop-loss lines. These lines enable our traders to recognize chart pattern and
visually assess profit and risk potential. Figure 29 shows a Trade Panel example--
a typical Cup-With-A-Handle Breakout Trade, identified by the Tradetrek stock
search engine.
Figure 29 A typical Cup-With-A-Handle Breakout Trade found by Tradetrek’s Live
Technical Stock-Search Engine
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