This Week’s PowerRatings Lessons
One of the great things about
PowerRatings
is that they can be used in so many different ways. Once you
understand the basics, you can combine them with a myriad of trading styles.
Each day I’m going to highlight some of the different ways you can incorporate
PowerRatings
into your existing trading strategies and hopefully teach you a few new ones
along the way. I’ll also show you some of the ways our members are using
PowerRatings
to improve their trading. Here is a brief recap of this week’s lessons.Â
Click on the name of the article to read more.
Learn how to use PowerRatings with Fibonacci retracements
Waiting for a stock to pullback and then register a
high (7-10) PowerRating
will give you a statistical edge that will
dramatically increase your chances of a profitable trade. Plus, you need not
rely solely on PowerRatings,
you can combine them with your favorite indicators to improve your trading
rather than have to learn a whole new approach.
PALM fell from $41.14 to $35 in 8-days (a 15%
decline). This decline took PALM to its 38% (Fibonacci) retracement level of the
November – February advance. PALM registered a
PowerRating
of 7 the day of the low — indicating a high probability that it will rally over
the next 5-days.Â
Read more…
Here’s a new way of using stochastics
One of the most useful
ways of using Stochastics is to look for divergences. A positive divergence is
formed when a stock makes a new low but the stochastic indicator fails to make a
new low.
Once again, by combining this knowledge with
PowerRatings
you can add a statistical edge to your
trading. As you can see in the chart, just when DAKT formed a positive
divergence it also recorded a
PowerRating
of 7. By using both tools together you now
have a high probability setup and can be confident of taking a long position.
The ensuing 5-day gain was over 26%.Â
Read more…
Using PowerRatings with TMCAP signals
Here is a way of using
PowerRatings
with
TradingMarkets Capital Appreciation Program (TMCAP). TMCAP is “A
Program For Low-Risk Investors Seeking Strong, Consistent Returns From Their
Investments.“Â On 2/21/06 SNDK recorded a
PowerRating
of 9. The very same day TMCAP gave a buy
signal in SNDK, meaning you should buy SNDK at the open on 2/22/06. SNDK
rallied more than 5% on 2/22/06 and TMCAP gave an exit signal, meaning you
should sell (close out) your long position in SNDK at the open on 2/23/06.Â
Read more…
Click here
to take a free trial of
PowerRatings.
You can also
attend a free
class on how to use
PowerRatings
presented by Steve Primo, our Director of Education.
Ashton Dorkins
Editor-in-Chief
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