For the past couple of days I’ve only been trading off the new highs indicator. This real time information is updated constantly throughout the day, listing price and # of times a new high is made. I posted a picture of it here http://fearandgreedtrader.blogspot.com/2009/07/momentum-indicator.html#links
Anyway I was looking to put another arrow in my quiver to counteract the HFT bs that is going on this days. Trading stocks that are constantly making new highs seemed to me a good way not to get caught in whipsaw action. It’s worked good the past couple of day and today really paid off.
Today I traded :
RL
AIB
LNCR
PCLN
USG
ATPG
AMED
RVBD
If you take a look at the charts they are all similar and constantly moving higher. No shakeouts or messing about. Small spread and big volumes mean it’s easy to move in or out and not get screwed.
You don't have any patterns to figure out. It's making new highs. End of story. That's the side of the trade you want to be on
Not falling in love with any favourite stocks is the key. Just view the symbols as a vehicle to make money and discard them when they run out of gas.
Remember also that when a stock is making new highs or new lows, it is never too late to get into it when it is in play. The fact that it keeps making new highs or lows means it still has momentum and that is the only thing that matters.
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