Second Post For Today FWLT is below
This is from a fellow member kind enough to share his thoughts on the STMM system.
"Dear Mark,
A tip from a new STMM participant Ralph Souza, with a special thanks to Mark Deaton’s unselfish help.
This tip only applies to people who are having trouble recognizing signals/triggers at first glance because it can be a little confusing and overwhelming if you try to take in too much at one time. So use the KISS method (Keep It Simple Swingtrader).
PROBEM: Looking at the whole candlestick rather then just the very bottom or the very top.
SOLUTION: Using the daily chart. If you are new the STMM system and looking for signals and triggers but getting confused well then “welcome to my club.” That’s until the “light went on.” DO NOT LOOK AT THE ENTIRE CANDLESTICK when looking for the swing high/low indicators in the beginning. Only look at the top or bottom formation at first. Look for the signal/trigger 1st at the very right hand side of the chart either short or long (see manual). When the 3rd or 4th or 5th candlestick develops, look for it to exceed the 1st candlestick which indicates that it’s a potential buy. You should be able to find a signal pattern within the previous 30 to 50 days. Go backwards day by day and you will be surprised how often the signals show up. If you find it . . . then it confirms that you are looking at a trigger. If you cannot find the previous signal set up then you are looking at a signal and not a trigger. Put this stock on a watch list waiting for a trigger to develop and move on.
Personally I like to see the first two candlesticks forming a swing high or swing low in the last two days of trading on the daily chart – waiting for the next day or two to see if a trigger is forming. Be sure to look for the previous signal though. Note: It’s important to recognize the fact that the third candlestick could also be trigger in many cases.
This is working for me and I sincerely hope it helps you if you are becoming frustrated. Remember to KISS.
NOTE: There are other factors to look for before buying and it is all covered in the manuals.
Regards,
Ralph"
Thanks Ralph !
"Dear Mark,
A tip from a new STMM participant Ralph Souza, with a special thanks to Mark Deaton’s unselfish help.
This tip only applies to people who are having trouble recognizing signals/triggers at first glance because it can be a little confusing and overwhelming if you try to take in too much at one time. So use the KISS method (Keep It Simple Swingtrader).
PROBEM: Looking at the whole candlestick rather then just the very bottom or the very top.
SOLUTION: Using the daily chart. If you are new the STMM system and looking for signals and triggers but getting confused well then “welcome to my club.” That’s until the “light went on.” DO NOT LOOK AT THE ENTIRE CANDLESTICK when looking for the swing high/low indicators in the beginning. Only look at the top or bottom formation at first. Look for the signal/trigger 1st at the very right hand side of the chart either short or long (see manual). When the 3rd or 4th or 5th candlestick develops, look for it to exceed the 1st candlestick which indicates that it’s a potential buy. You should be able to find a signal pattern within the previous 30 to 50 days. Go backwards day by day and you will be surprised how often the signals show up. If you find it . . . then it confirms that you are looking at a trigger. If you cannot find the previous signal set up then you are looking at a signal and not a trigger. Put this stock on a watch list waiting for a trigger to develop and move on.
Personally I like to see the first two candlesticks forming a swing high or swing low in the last two days of trading on the daily chart – waiting for the next day or two to see if a trigger is forming. Be sure to look for the previous signal though. Note: It’s important to recognize the fact that the third candlestick could also be trigger in many cases.
This is working for me and I sincerely hope it helps you if you are becoming frustrated. Remember to KISS.
NOTE: There are other factors to look for before buying and it is all covered in the manuals.
Regards,
Ralph"
Thanks Ralph !
posted by Mark Deaton at
7:39 PM
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