|
Oracle
Info Tech
Analysis Staircase
Trap
Door Channeling
Gap
Down Breakout
MACD
Track
Channeling
| 
- OracleTrader and the Rolling Channel.
When
you select Rolling
Channel
in the Daytrading
section, stocks
are sorted by the
consistency of their
recent trading range,
or channel. The
reason you would
want to locate the
stocks that have
the most consistent
trading ranges is
to buy at the low
end of the range,
and sell near the
upper end.
Caution
Before
playing a Rolling
Channel stock, always
consider market
sentiment. If the
market is trending
heavily downwards,
for instance, stocks
that would normally
bounce at the lower
end of their channel
might fall right
through and collapse.
Never assume a stock
will "bounce"
at its support level
if the whole market
is selling off.
For
more information
on Channeling, see
below.
|
Most stocks trade within a channel,
or a narrow band of support and resistance. This channel is formed by the stock's
support and resistance levels, as shown in the example below.
The above example shows DHR trading
within a channel between mid May through late September in 2005. A stock is
said to have a support level where trader step in and buy the stock,
and a resistance level where traders tend to sell the stock. In the case
of DHR, the channel developed between $52 and $56, or about an 8% range.
In theory, you could buy the stock
at the lower end of a defined channel, and sell it when it traveled to the upper
end of the range. In fact, several systems have been developed that do nothing
but this (such as the web site channelingstocks.com). With OracleTrader,
you can quickly locate the best
channeling stocks by selecting
Rolling Channel.
|
- Using the OracleTrader Rolling Channel
Alert.
When
you check Rolling
Channel Alert (Longer-term
section), you will
be alerted when
a stock in the Rolling
Channel list is
close to its support
line (the lower
end of its trading
range). If you select
"Short,"
it will alert you
when a stock has
reached the upper
end of its trading
range.
Before
playing a Rolling
Channel alert, always
consider market
sentiment. If the
market is trending
heavily downwards,
for instance, stocks
that would normally
bounce at the lower
end of their channel
might fall right
through and collapse.
Never assume a stock
will "bounce"
at its support level
if the whole market
is selling off.
Shorts
If
you select "Dark
Side (short),"
the reverse criteria
is used to rate
stocks---stocks
have surged higher,
but have shown recent
weakness.
|
Not
registered for OracleTrader? Sign
up now!
|