Technical Temptations Explained - Part I - Ground Rules

Lets set a few ground rules first:

1. I like to keep things very, very simple (Not a coincidence that I call myself lazy!)

2. All stocks posted in this blog are based purely on technical analysis, based on chart patterns. While building the list, I do not look at fundamentals, news, earnings announcements, earnings date etc. If I pick a trade from the list, then I will look at a few key areas, and I suggest everyone to do the same. In a later post I will explain what key areas I look at before picking a trade.

3. As I have mentioned earlier, these picks are "expected" to move 5-20% within 1-10 days timeframe. A few will certainly move 100-200% but that is not the expectation. Some of them might not move within 10 days, but might make a move on the 21st day, but again that is not the expectation. As these picks are only "expected" to move, some may break down or not move at all, that's okay. I will explain how to pick the trades and bring the odds in our favour based on price-volume action and a few other indicators.

3. If someone is more fundamentally inclined, and is looking at a bit longer timeframe, you are most welcome to check out my EPS momentum based blog.

4. If you have any questions, any suggestions, any criticism, any corrections, just go ahead and post a comment, or send an email. I appreciate all feedback.

5. When I was a newbie to trading, I did not have anyone to teach me these concepts. I picked all these stuff from reading books, visiting websites and following blogs. If my posts are helpful to even one person new to trading, that's all I want.

6. The picks I post are just a bunch of potential candidates comprising various price ranges/exchanges. Once you grasp the concept please feel free to generate your own ideas or finding better picks from somewhere else.

7. I also include some "Volume Explosion" candidates. They are separate from the technical candidates. I just include them so that if anything exciting happens the next day, people can keep and eye and take a trade if it is there. From now onwards I will separate that list so that it does not interfere with the core picks.

Cheers!

Lazy