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Subject:  Re: Trading the Pennies Date:  9/24/2018  11:39 PM
Author:  Arindam Number:  3895 of 4191

"No battle plan survives the first shot."

Started putting together a scan for the $1-$5s and quickly decided that partitioning the stock market by price was bullsh*t. Who gives a FF whether a stock is priced $1 or $100? Are trades happening often enough that prices don't gap? So I'm scrapping the penny stock project and rolling out another one, but with roughly the same format: 10 positions, FA + TA vetting, trailed stops, etc.

Also, given the huge number of charts that have to be looked at, but with no reasonable way to mechanically filter them, because indicators always lag prices by too much to enable timely entries, the most simplistic of trend-line charts is needed, so that 20 a minute can be looked at. That means an Inchimoku Cloud of this sort, which quickly says whether a stock is going up, down, or sideways and on what kind of volume and volatility.

FreeStockCharts doesn't offer Candle Volume, but does offer unlimited, free watchlists. So it makes sense to do the initial technical vetting at FreeCharts, check fundamentals at Yahoo Finance (or similar), and the final tech vetting at StockCharts (whose charts are easiest to link).

Here's another example of that same filtering format. Note the dojis at the turning points and the measured move in mid Aug.
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