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Further
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Low on Cash for Christmas? Try Gifts in a Jar - Kristin Johnson
Time is money, and right now you don't have either the time or the money to answer the call of the shopping mall at Christmas. The only way you can show your friends love, peace on earth, goodwill towards men is by shopping at Macy's, so you...
The Top Five Reasons For Posting In Online Guestbooks - Keith P Stieneke
An online guest book is a log for people to sign and sometimes leave brief messages when they visit someone’s website. Possibly you’ve posted to, or “signed” one of these guest books at one time when you’ve visited someone’s website. Maybe...
Your Time of Blazing Noon - Joe Vitale
War. Economic concerns. Poor business. Unemployment. It sure looks bad, doesn't it? But I also want to remind you that we have lived, survived and prospered though far worse times. For example: In 1780 George Washington said, "We are without...
Foreclosure Property Deals - Amber Lowery
Did you know that you can save tens of thousands of dollars on the purchase of your home by investing in a foreclosure or preforeclosure property? When you are trying to purchase a home for the first time, and you have limited resources and limited...
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How To Identify Explosive Stocks To Trade
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Written By:
Peter Lim
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Many traders often come to me with this question, " How can I know what stocks are going to break out in price?"
Indeed, if you can identify what stocks are going to break out in an explosive move, you can jump on these stocks to trade them before they start to move.
While it cannot be denied that this is a trading technique, and have elements of speculation, we can use technical analysis to help us nail most of these moves by using performance studies on price and volume.
There is a predominant school of thought that volume preceeds price. In other words, we will see an increase in volume of a stock before its price starts to increases or moves up. Some call this the On Balance Volume outbreak.
Irregardless of what technical analysis software you use, you can even have records of price and volume and put them onto a spreadsheet to compute the changes in volume and price of a stock or an index to detect these volume outbreaks.
Many traders have found it is very profitable for them to detect stocks that have undergone a surge in volume of around 50 times its average volume of the past 25 days, but with only a slight increase of - continued below ...
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around 7% in price.
When you have a situation like this, traders have observed that the stock's price will soon moves up following the oubtreak in the stock's volume.
Tweak this technique to your stocks or your trading vehicle and customize it to suit your risk tolerance.
You will find this to be one profitable arsenal that you can add to your box of trading tools!
As always, trading carries risk. So consult your broker, private client adviser or financial planner if you wish to trade.
For more trading ideas, visit Peter Lim's website at http://signaldot.poolofwisdom.com Peter Lim is a Certified Financial Planner and the author of the ebook "Swing Trading for Gigantic Profits". His SwingRanger software has been widely used to nail the market turning points. You can have free access to a swing trading course and trading articles from his site http://www.online-guides.info/Swing-Trading/ Permission is given for you to reprint this entire article provided there are no changes and this signature box is kept intact.
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| _Additional Resources ... |
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If You Don't Have a Home-Based Business, Start One Today! - Sandy Botkin
This may be a decade of tremendous corporate profits and economic growth, but for the vast majority of North Americans, the 90's have been a dismal, uphill climb. And many economists believe that this next, new millennium won't be getting better...
Don't Let Them Take Your Money and Run! - Denise Hall
The Internet is full of scams and fraud. Many are in the form of "income opportunities" and "investment programs." Sometimes it's hard to tell if a company is legitimate or not. Unfortunately, many of them aren't and people get scammed into losing...
Why One Should Chose A Network Marketing Home Based Business - jack foley
There are many advantages for having one's own business but I believe a network marketing home business has to be the crème de la crème. Network marketing above any other online business will continue creating the most online entrepreneurs. Firstly...
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