Last Nugget

This is the final nugget, No more after this.

On the MACD above the center line where the histogram is displayed is called Bullish and below the center line is Bearish. So take the time and look to see what happens when a orange line, and the center line could talk together.

Thanks for the tip!

I have also found some very significant things that I am studying regarding the MACD. It is by far the most powerful indicator I have identified. It is an underated indicator. It is an indicator that is notorious for, if xxxx happens above or below the MACD middle line, and you get a cross, xxxx will happen. Just know, if you study this indicator enough, you will see some consistencies that are eye opening. I am working on this nugget and can honestly say, I am almost there-just doing some final testing off specific charts. The key is, finding the correct chart that presents these consistencies. Money After Correct Diagnosis (MACD). Ha ha! How do you like that?

BigMoney...keep the nuggets coming. Everyone in here could stand to learn from each other. I for one love reading all the successes as well as losses. If we take all that and research the trade we all learn a lot.

Are you referring to the orange line being the 50ma? Could you further explain?

Thanks



Edited 1 time(s). Last edit at 11/18/2013 06:11PM by brcurley.

I thought I'd chime in here.

I use slightly different MACD and BB parameters than GW uses and with my parameters, there is a relationship between the distance from the 0 line and whether it will cross the BB center line or bounce off the other B band. It might be something you might want to investigate. I'm willing to share my parameters if that's not against the rules.

I am tearing up this TSLA! I have made multiple trades yesterday and today on this stock. These trades have been all art. I rode it down yesterday for about $4. I rode it up this morning for almost $4. I clearly saw it coming back down, Fear is far more prevalant in this market than greed. People are fearful that they will lose their profits (in this stock), so they are not hesitant to sell. I then jumped back in just before lunch and have been riding it down. I have about $5 under me, so I am pretty happy with my trades on this stock. I have been spending a lot of time watching the DOW, NAS, and S and P. I have also worked hard to prepare for trades. I knew last night that I would probably trade this stock today. Again, I was afraid to hold overnight, so I waited to see what would transpire in this volatile market. Just wanted to share my wild and crazy-but successful run with TSLA. It has been a predictable cash cow.

I have never given a nugget, but here goes.......Mentor taught me about nuggets that happen after every really big move during all earnings seasons. The nugget is, if a stock rises to a specific percentage after earnings, it will ALWAYS pull back within two weeks (usually a day to a week). He did not give me the percentage, but I figured it out. All you are to do is, identify stocks that move well- those that traditionally run strong after earnings, and wait for it to hit the specific percentage. After the rise, watch as it starts to flatten or pull back. As the candles try to enter back in the BB on the 34, buy puts. 25% or more on your put option is the magic number. This works on ANY stock that hits that specific percentage. The only work you need to do is find out what is the magic percentage. This is considered one of the golden nuggets because it happens on a ton of stocks throughout the entire earnings season. If a stock drives up after hours to that specified percentage, make sure it opens at or above that percentage. If it does, simply watch it the next day. If it starts to blow off a bit of steam toward the end of the day, you know your trade will come the following day when it starts to pull back and head bac into the BBs. He went on to explain that there are so many people who "hit the jackpot" and will sell at the first sign of a pull back. When fear sets in, everyone starts to run for the hills, so watch for signs of fear and capitalize. The harder and faster it drives up, the faster and harder it comes back down. This is why you are looking for a percentage in the rise. Test it before you use real money. This is a nugget that everyone should be able to grasp. Take the time to go back and test it over the last couple of years. It will hit you like a ton of bricks.

Rookie, I'm a little confused. Would you help clarify please?

Just assume stock announced earnings today, the closing price is $100, and the "magic percentage" is 10% for easy math.

Am I looking for the stock to open at or above $110 tomorrow to buy puts? Or am I looking for the stock to rise to $110 sometime in the next two weeks before buying puts?

Based on your example, you are looking for the stock to rise to at least $110 the following day (after earning report). If the stock report earnings today-after market close, you want to see that stock rise to at least $110 tomorrow. Another key is, I want to see my candle completely outside of my BB on the 233. That percentage is very important, but those who are fairly smart know, you will not get a pop outside of the BB on the open of the 233 and Daily if you do not get a really strong rise in stock price. Sorry about that. I hope this clarifies.

rookie20: any examples you could point to?
bigmoney: are you suggesting that the histogram center line is like an analogue for the 50MA?

Rookie, thanks for answering my question. However, you raised another question for me when you said, "Another key is, I want to see my candle completely outside of my BB on the 233."

Do you mean to say that when the 233 opens on the day after earnings, it needs to move outside of the BB like the first candle below? Or do you mean that the whole candle needs to be outside the BB like the second one below?

An example of the candle outside the BB for earnings could be found today on DE. It is outside the 233, and the Daily and they announced earnings BMO today.

The entire candle should be outside the BB. I really want my candle on the Daily to be outside as well, but I found that if that 233 is out and it has a lot of fuel in it, that is my big indicator. Now, I wait for the other criteria. Again, you are only looking at those stocks that move well and have good average volume.