How to find profitable targets with Typical Channel?
The Typical Channels section allows a quick glance of what’s up and what’s down. It enables you to zoom in on targets that may bring you profit without having to write programs or study complicated technical analysis. You only need to follow your eyes and a few fundamental criteria based on common sense.
Typical Channels provides six channel shapes, each of which can be applied to 30 or 60 daily, weekly, or monthly K charts, to find stocks that fit those channels. It can help you find stocks with more confirmed growth using 60 weeks ascending channels; or new opportunities using 30 days channels.
The six channel shapes are Strong Uptrend, Steady Uptrend, Narrow Flat Trend, Wide Flat Trend, Strong Downtrend, and Steady Downtrend. You can categorize stocks with the help of the Typical Channels section to manage your investments.
Once you have decided the shape and duration of the channel, you can add criteria based on common sense. For instance, to buy and hold growth stock, you want a stock to have at least a positive ESP, P/E not too high, transaction volume not too high and not too low. For shorting of a stock, you may want the opposite, companies that are not earning money, or with sluggish growth compared to the price.
The Typical Channels section offers two criteria categories for you to enhance screening:
- Fundamentals: Company fundamentals, such as company growth on earnings, revenue, dividend, and operating margin or cash in hand.
- Price & Volume: These criteria help you screen out stocks you like or dislike based on price and the stocks’ changes and holdings. For instance, you might want to find companies that have prices with new highs or lows. Or, you may prefer stocks with prices within a certain range. Or, you may be looking for stocks that have a certain percentage of institutional shareholders.