Trading Educators Blog
Finding Stocks to Buy or Sell
Finding stocks to buy or sell is a tall order. Let me tell you one way I've done it for years.
For those new to my writings, a trend is defined by a breakout of the #2 point of a 1-2-3 formation. A trend is established upon the breakout of the extreme of the defined trend. In other words, the breakout of a Ross Hook establishes the trend. A Ross Hook is created as a result of the first correction following the breakout of a defined trend, or the first correction subsequent to the breakout of a Ledge, or a Trading Range. (For a full explanation of these terms, read the free eBook for the Law of Charts!! Need the link? Scroll down and click on the Contact Us link.)
A Ross Hook is:
The first pivot following the breakout of a 1-2-3 high or low.
The first pivot following the breakout of a Ledge.
The first pivot following the breakout of a Trading Range
In an up-trending market, after the breakout of a 1-2-3 low, the first instance of the failure of a price bar to make a new high creates a Ross Hook. In a down-trending market, after the breakout of a 1-2-3 high, the first instance of the failure of a price bar to make a new low creates a Ross Hook.(A double low equals a Ross Hook).
If prices break out to the upside of a ledge or a trading range formation, the first instance of the failure by a price bar to make a new high creates a Ross Hook. If prices break out to the downside of a ledge or trading range formation, the first instance of the failure by a price bar to make a new low creates a Ross Hook (A double high creates a Ross Hook).
One of the best ways to buy or sell stocks is to let someone else do the research of the fundamentals for you, and then you, being a great chart reader, provide the proper timing.
There are a lot of people out there who claim you cannot time the stock market. However, many people who write to me have told me that once they learned how to read a chart from having studied the Law of Charts, they now find that they are excellent market timers.
There are many good evaluators out there who can tell you when a company's stock is bargain priced and a screaming buy, or overpriced and now time to sell. The problem with virtually every one of them is that they can't tell you when to be a buyer or seller. Very often, the stocks they suggest continue to fall long after they become bargains, and continue to climb long after they become overpriced. Very often, once research indicates that these stocks are good buys or good shorts, they flounder along at a bottom, or cling to their highs for months or years before they finally begin their climb or fall. With charting, you have a much better chance of correctly timing and even projecting the move.
Master Trader Joe Ross wants you to learn trading and he created products to do just that, teach you how to trade. Go to our website to find which ones best fit your trading style.