Saturday, October 27, 2012

Finding Momentum Acceleration Point for Stocks Investment

I am doing some research for stocks investment recently and I come across one very interesting idea for stock investment which is known as Momentum Acceleration Point. This is a great idea for investment in stock market and I am going to share with you the simple approach to trade the stock market.

This technique can ensure around 80% of winning and 20% of losing. Please continue reading to learn more.
Well, thanks for continue reading my blog post. I will explain the idea of momentum acceleration point.

What is Momentum Acceleration Point?
Basically, this idea is to find out the time for us to buy the stock before that stock start to move upward in price. Momentum acceleration point is the time where the momentum of the stock is predicted to move up which will push the price of the stock higher.

This technique provide us a guidance and it works like X-ray for us to scan through the stock market to find out which stock is going to have a big move in the coming days or weeks.

Where I get this idea?
I have forgotten how I came across this idea but I think some books give me some ideas about this. I have tried to search the Internet but I could not find anything about it. (Well, I guess I am the person invented this indicator?) Ok, if I am the one invented this, then you are really lucky because I share this idea with you. So, please share this blog post with your friend using Google+, Facebook or any other methods you like.

What you need to use this technique:
You need the help of the technical indicator below:
1. Trend
2. Stochastics %K

3. Williams %R
4. Bollinger Band


Some Rules to Follow when using Momentum Acceleration Point Technique:

1. Trend of the stock (Up trend, down trend or ranging? Buy only Ranging or Uptrending stock)
1. Stochastics %K and 2. Williams %R
For Stochastics %K and Williams %R, try to find stocks that have both the indicator moving upwards for Stochastics %K (dotted line move upward and cross over the blue and red line and cross above 20% line) as for Williams %R (Red line cross green line and the cross is above -80 line)

3. Bollinger Band
After you buy in the stock based on the Stochastics %K and Williams %R, then you MUST hold it to wait for the price to cross above middle line of Bollinger Band.
Condition #1:
If it cross the middle line, then you can HOLD until the price cross upper band of Bollinger Band.
Condition #2:
If it does not cross the middle line, my advice is to wait first, if it drop 10%, then cut lost. Sell it and wait for the next Stochastics %K and Williams %R signal.

I am using these three indicators to find the momentum acceleration point.

My Trial to Find Momentum Acceleration Point for Stocks:
It is not easy to find good stocks. Some of the criteria to use Momentum Acceleration Point technique is to find good fundamental stocks that have volume of trading. The criteria to use this technique:
1. Stocks with Good Fundamental (Dividend, NTA, EPS and PE)
2. Volume (Must have daily trading volume)
3. Sector: Properties, Plantations, Steel etc.

Trial #1: Properties Stock: Glomac

I have highlighted in blue circle the wrong entry. So, cut lost at 10% lose. Then, go in again when the Stochastics %K and Williams %R signal are right. All the vertical lines are entry point based on Stochastics %K and William %R. Exit point will be when the price touch and cross upper band of bollinger band.

Trial #2: Retail Stock: Parkson
As you can see here, I put a remark "Don't Trade!" because it is in a downtrend. Downtrend does not suit for Momentum Acceleration Point. I have highlighted in blue circle the wrong entry. So, cut lost at 10% lose. Then, go in again when the Stochastics %K and Williams %R signal are right. All the vertical lines are entry point based on Stochastics %K and William %R. Exit point will be when the price touch and cross upper band of bollinger band.

So, that is it. I think this indicator can help us gain a lot of profit from the stock market if you are using it correctly by following the rules. Please leave some comments if you have problems with this indicator.

-->

1 comments:

Dexter Louis said...

Momentum acceleration is must for perfect investment in a business. You should invest in a business which you know little or much.
VCT

Related Posts with Thumbnails