I don’t just use stock charts for my analysis. I’m going to spill those proverbial beans and show you how I find the incredible stocks for a very popular stock blog.
This is not about using technical analysis to read a stock chart. It is something much more effective.
I’m part of an exclusive stock club that gave me this algorithm. Make no mistake, this algorithm is very powerful and can produce annual returns in excess of 1,000%!
This revolutionary algorithm makes your computer think better than a human brain. Older software used statistics and set models for processing, but this algorithm is literally like having 100 stock analysts and day traders sitting inside your computer working for you!
My fellow inner circle club members have used this to make a ton of cash. I’m going to tell you exactly what this secret algorithm is.
So you are probably wondering why I’m giving this away free. Well, I’m hoping you will make a lot of money from this formula and become a subscriber to my blog. That’s fair.
The first component of this formula is to determine the trend. What you want are the daily moving averages in three time frames: the 10 day MA, 20 day MA, and 50 day MA. Here is the first part of the formula: 10 day MA greater than 20 day MA greater than 50 day MA. In other words the 10 day MA is higher than the 20 day MA which in turn is higher than the 50 day MA. If the stock you are looking at meets this criteria, then move on to the next component in this formula. If it does not, go back and keep looking for a stock until you find one that does.
The next component in this formula is to determine if on the previous day, in the last hour of trading, the stock closed above the 5 hour MA. If it has, move on to the next component in this killer formula. If not, reject the stock and start all over again until you find a stock that does.
In this step we must look at the stock’s 3 day high. If it is at a 3 day high, you can keep reading the next step below. If not, you need to ditch the stock and start over again with another stock.
Now we need to determine if the stock is above the 20 day MA. If it is, keep reading.
In this step, we need to look at the previous week of trading and then 2 weeks before that. If the stock hit a 3 week high in the last week of trading, that is excellent, keep reading. If not, say goodbye to the stock and start over again with another stock.
The final component in this formula is if the stock has hit a 3 month high in the last month (the previous full month of trading).
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