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Sunday, August 23, 2009

How A Computer Reads A Stock Chart - Secret Million Dollar Algorithm Revealed

By Terri Wise

I'm going to do something that is unheard of in stock chart and market analysis. I'm going to tell you exactly what I look for in a stock and how I find picks for one of the most popular stock blogs on the Internet.

This is a secret formula that is much more effective than just reading a stock chart.

In fact, I learned this method from a top secret artificial intelligence algorithm that has produced returns in excess of 1,000% annually known only to a few inner circle stock market club members.

This crazy simple formula can make any computer seem to actually be able to read a stock chart and predict future price action better than a human. Many years ago, software used statistics and models for processing. This secret algorithm goes way beyond that. It's like having 100 stock analysts and day traders inside your computer giving you recommendations!

My fellow inner circle club members have used this to make a ton of cash. I'm going to tell you exactly what this secret algorithm is.

Now you might be thinking how a formula this valuable can be given away free. Simple. I want you as a regular reader of my free blog. I figure if I can help you make a ton of cash you'll become a subscriber. That sounds fair.

We need to examine the trend. Get the 10 day MA, the 20 day MA, and the 50 day MA. The formula is: 10 day MA greater than 20 day MA greater than 50 day MA. So the 10 day MA should be above the 20 day MA. The 20 day MA should be above the 50 day MA. If this criteria is met, move on to the next step. If not, toss out the stock and start over.

The next step in this algorithm is to look at the previous day's close and the last hour of trading. If the stock closed above the 5 hour MA go on to the next step. If it has not, throw out the stock and start over again with a new stock.

Now in this next step, we need to see if the stock is trading at its 3 day high. If it is, read the next step below. If not, you know how this goes, get rid of the stock and find another one and start all over again.

The next step is to determine of the last price of the stock was above its 20 day MA. If it is, move on.

The next step is to see if the stock, during the previous week of trading, hit a new 3 week high. If it has, keep reading. If not, you know the drill, toss the stock out and find a better one.

In this component of the algorithm, we must look at the previous month of trading and then 2 months before that. What you need to determine is if the stock, during the previous month, hit a 3 month high. If it has, now that's a stock! If it has not, you must let the stock go and find another stock and repeat this process over again. - 23212

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