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The Experts.

1. There are manyways to select such stocks, but I prefer to integrate fundamental and technical analysis in my selection process. One such fundamental screen is as follows. Use a fundamental database screening program to perform this system.

A.  Trailing 12-month earnings per share in top 30%, then

B.  12-month price increase in the top 30% of remaining stocks, then

C.  Most recent quarterly earnings per share in top 60%, then

D.  Finally, top 20 stocks for expected percent earnings per share growth in the next fiscal year.

- Gillbert Raff

2.Before basing any trade off of strict overbought/oversold levels using any overbought/oversold indicator, some analyst recommends that you first qualify the trendiness of the market using indicators such as r-squared(see r-squared) or CMO (see Chande Momentum Oscillator). If these indicators suggest a non-trending market, then trades based on strict overbought/oversold levels should produce the best results. If a trending market is suggested, you can use the overbought/oversold indicator to enter trades in the direction of the trend.

- Tushar Chande

3.Try to determine the bias in prices: up or down, and then ask whether prices are moving or stalling.  This is a "snap-shot" of possible market moves in the near term. Next, we'll judge if prices are trending or ranging, and check if extraordinary price trends are underway. Lastly, try to project some price ranges for planning your trading.

- Tushar Chande

4. A healthy advance is accompanied by rising volume and a strong volume accumulation. Since volume is the fuel that powers rallies, it follows that lagging volume on rallies is a sign of less fuel available to move stocks higher. Conversely, declines are usually accompanied by low volume, but end with panic-like liquidation on the part of institutional investors. Thus, we look for a pickup in volume and then lower lows on reduced volume with some accumulation before a valid bottom can develop.

- Marc Chaikin

Moving Average Length.

The critical element in a moving average is the number of time periods used in calculating the average. When using hindsight, you can always find a moving average that would have been profitable. The key is to find a moving average that will be consistently profitable. The most popular moving average is the 39-week (or 200-day) moving average. This moving average has a good track record in timing the major (long- term)market cycles. The length of a moving average should fit the market cycle you wish to follow:

Trend               Moving Average Length

Very Short Term       5-13 days

Short Term              14-25 days

Minor Intermediate   26-49 days

Intermediate            50-100 days

Long Term               100-200 days

- Equis MetaStock