Rolling stock strategy explained

What kind of stock (parameters) ?

Typically stocks with volume over 100,000 shares traded daily, traditionally stocks priced at $2 or less, but there are very good rollers up to $35.

What’s used (probabilities) ?

Stochastics, MACD, Moving Averages.

What to look for (setup) ?

Stocks that are non-trending (or rolling), look for a flat or gently rolling 100 to 200-day moving average line.

  1. Entry:The three green arrows comprises of three technical indicators that are
  2. Moving Average
  3. MACD Histogram
  4. Stochastic Oscillator

The moving average is a technical indicator that measures the trend of a particular stock. An entry signal occurs when the price is above the moving average. The MACD is another technical indictor that measure momentum. An entry signal is created when the MACD crosses above the horizontal signal line The Stochastic oscillator is another momentum indicator that measure the price of the stock in relation to the range the price has been in over a period of time. If the stochastics oscillator dips down below the 25 line – it is said to be in an oversold situation and likewise if it goes above the 75 line – it is said to be in an overbought situation. A buy signal is produced when the stochastic indicator rises above the 25 line. This indicates that the momentum of the stock is gathering to take the price of the stock from its low range into its high range.
Look for the three green arrows to line up vertically. The three green arrows are combined on the same chart and a buy signal occurs when all three line up suggesting Long - stochastic breaks above 20 after being below, look for a bullish (go long) candlestick, also look for a confirmation of some sort (+DI crossover –DI) or for Short - stochastic breaks below 80 after being above, look for a bearish (go short) candlestick, also look for a confirmation of some sort (-DI crossover +DI)

  1. Exit:The three green arrows comprises of three technical indicators that are
  2. Moving Average
  3. MACD Histogram
  4. Stochastic Oscillator

The moving average is a technical indicator that measures the trend of a particular stock. An entry signal occurs when the price is above the moving average. The MACD is another technical indictor that measure momentum. An entry signal is created when the MACD crosses above the horizontal signal line The Stochastic oscillator is another momentum indicator that measure the price of the stock in relation to the range the price has been in over a period of time. If the stochastics oscillator dips down below the 25 line – it is said to be in an oversold situation and likewise if it goes above the 75 line – it is said to be in an overbought situation. A buy signal is produced when the stochastic indicator rises above the 25 line. This indicates that the momentum of the stock is gathering to take the price of the stock from its low range into its high range.
Look for the three green arrows to line up vertically. The three green arrows are combined on the same chart and a buy signal occurs when all three line up suggesting Long - stochastic breaks above 20 after being below, look for a bullish (go long) candlestick, also look for a confirmation of some sort (+DI crossover –DI) or for Short - stochastic breaks below 80 after being above, look for a bearish (go short) candlestick, also look for a confirmation of some sort (-DI crossover +DI)