Video: Technical Analysis Using SwingTradeBot

Duru’s technical interpretation and reasons for excluding certain charts are very similar to my own. So I agree with about 90% of what he read, but I’ll point out some differences at the bottom of this post.

What really interested me about this video was watching the way he used the site. they said Software developers should watch people use their creations Check for usability issues. It’s been a long time since I’ve seen anyone use SwingTradeBot, so watching Duru’s video was inspiring to me as the site’s creator. In fact, After watching the video, I made some changes to the Charts page. Key things I noticed:

here has Changes I made to the Charts page Hope that helps people speed up their analysis:

database management group

Duru disqualifies DBRG for having a red candle (the closing price was lower than the opening price), and it closed near the 50-day moving average. I actually like red candles because they are easier for me to buy. I almost always set my order to trigger if and only if the stock moves above the previous day’s high. So if the stock sells off consistently or doesn’t rebound enough to trigger my order, it’s no big deal, I’m just wasting some time entering the order.

I find that stocks with green candles at the bottom of pullbacks are more likely to gap the next day. These gaps often take the stock too far from my stops, messing with my risk/reward ratio. Then I have to decide whether to chase or let go.stock has A red candle at the bottom of a pullback is more likely to actually trade to my desired buy point than a gap to gap.

Also, a red candle means that sellers/bearers are in control during the session. If the stock starts to rise the next day, there may be short sellers who quickly close their positions. So I think the red candle is more likely to make the bears “offside”.

MCK

Despite narrowing gap, Duru still likes MCK, says He usually forgoes high-priced stocks “because options are more expensive and/or I just don’t like buying just a few shares”

Closing the gap would disqualify me from MCK, but I really want to focus on the issue of high-priced stocks. This is my long-term heart disease! I know a lot of people shy away from high-priced stocks, but I think it’s best thought of in dollar (insert your currency here) amounts and percentages, rather than share counts, price per share, and point changes. This is how to balance the situation between various stocks at different prices. If I have $10,000 to invest, whether I buy 10 shares, 500 shares, or 10,000 shares, it should be zero! Gone are the days when we had to buy in increments of 100 shares.In fact, now you can even buy fractional shares. As such, I see no (good) reason to shy away from high-priced stocks simply because of their stock price.

PS Perhaps paradoxically, I tend not to look at Low priced stocks (less than $10 for me) as this is usually a sign that the company is in trouble. I may also be biased based on what I learned years ago that mutual funds and other institutional investors are restricted from buying cheap stocks — I’m not sure if that’s true now.