50(MA) + 200(MA) Golden Cross
You buy when the 50 day simple moving average crosses above the 200 day simple moving average.
You’ve heard of this method before, but let’s refine it a little..that way you can get into the best stock possible.
We’re going to use stockfetcher to find stocks for strong bullish mid term hold.
The 50 day simple moving average crosses above the 200 day moving average. Generally when this happens, it’s a bullish trend that’s going to continue upward.
Use http://www.stockfetcher.com/ with the scan below to find these stocks. Copy the words between the lines and paste it into stockfetcher. (If you’re new there, scroll down and click on any of the predefined scans and enter the code it gives you. And then copy and paste the words below:
50+200 GoldenCross SCAN
—————————————————————————————
Show stocks where MA(50) crossed above MA(200) within the last 2 days
and Average Volume is above 300000
and close is between 15 and 30
—————————————————————————————
It came up with 9 stocks. You’ll probably see 5 if you haven’t subscribed…
Now go to StockCharts.com and type in the stocks and enter 50, 200, and 15 for the simple moving averages. The 15sma is important, you’ll find out later..
Next: Eliminate the ones with negative p/e’s and eps’s and try to find the ones that don’t have much volatility.
Of these of I found FDG, PNX, and PTEN to be the best. You see how they’re trending upward slowly, and more importantly, the 50sma crossed above the 200sma just recently for all them. Now we have three to pick from. Now everyone has their own preference on how to choose from here. But how about using StockScouter in order to do this for us? We try to find the one with the highest score.
StockScouter
http://moneycentral.msn.com/investor/StockRating/srsmain.asp
FDG = 10
PNX = 8
PTEN= 5
FDG is the winner with a stockscouter rating of 10, the highest score a stock can possibly get.
Okay, now for the 15sma. In my opinion, a sell signal is given when the stock crosses below 15sma. Some would prefer 20sma…
Also, make sure to check for earnings anytime soon..
Echoed from: http://onlinetradersforum.com/threads/50-ma-200-ma-golden-cross.11579/
