80/20 what is it?

july 4...


July 4, 2007
80/20...what is it?...It’s a number I assign to a potential trade whenever I find a price channel match, or a percent channel match. I have been successful 80% of the time in predicting the exact price the stock will bottom at....using channel matches....
20% of the time I miss by 2 to 3% and i have to wait a week just to get my money back...and then maybe one more week to turn a profit....
After I find a channel match..
TOOL # 1...It has to make sense....that’s when I go and look at the stocks EPS history...I look at yearly estimates only...Quarterly estimates are useless...
EPS trend is the TOOL # 2 second tool, that confirms if a trade is 80/20.( there are many rules to EPS trend too that I have to follow and will discuss at a later date)....
then tools #3 thru whatever ...include..RSI, slow stochastic, recent news (sector)..stock buy backs, takeovers, upgrades , similar companies...change in target price...200 day..ma..0.38 fib lines...slope of the 50 day...up or down...other people’s comments...

On another note.....would you make money buying double bottoms or shorting double tops...(only?) .well I have those trades to be 30/70....30% of the time I make money...and 70% of the time I have to wait two weeks or longer to get my money back...and sometimes it’s a total loss....
Here’s an example of a trade i did...
I bought GAS on a channel match....Price 3 or 4 dollars above a 4 month long double bottom....I had rsi 32 and a good price channel match...Then all Utilities broke down...GAS started to descend toward the double bottom, which would have made the RSI = 15... well i threw out.RSI 15... i figured ok GAS will test RSI 25....well i was wrong...Gas did go to RSI 15...that’s one out of a hundred that does that...

meanwhile EPS hadn’t changed, news was good, no upgrades or downgrades ...but the call went from $200 down to $20....That’s why this site can only obtain a maximum of 97% correct trades ....There’s always that 1 in hundred stock....so have i made any of that $180 loss back...yes i have... GAS has never gone below the RSI 15 price since that day...and I’ve picked up the $300 contract three different times and made about $120 back....
zee...
remember 100 to 1 goes the other way too....HLT up $17 in two days....CME up $45 in two days...those were posted right here....two days before the actual event....this is not a history site....you had be ready to move...once a target price has beeen activated...