|Upside Stock Indicator||Information|
- A stock indicator that analyzes Target 1 profit, potential and profit/loss ratio.
- Good Trade Quality means there is good target 1 profit and target potential along with
a high profit/loss ratio (a tight stop loss is available).
- Target 1 is a stock price that a typical short term rally may achieve.
- These typical stock rallies can last anywhere from 3 days to 6 weeks and occur approximately 6 to 12 times a year.
- The Target 1 percent stock profit is also listed.
|Stop Limit (Stops)
- The stop price is provided along with the percent loss from the current stock price.
- A stock stop limit is either a mental or automatic (placed with a broker) sell order placed below
the current stock price to limit ones loss.
- Stock stops are only adjusted in one direction (up) and trails the current price.
- The stock profit/loss ratio indicator is the ratio of Target 1 profit divided by the stop loss.
- Higher profit/loss ratios above 2.5:1 signify higher quality stock trades.
|Target 1 Potential
- Analyzes stock resistance areas that block the rally to Target 1 and helps the investor gauge if
Target 1 is possible.
- It may be unreasonable to expect a stock to reach the Target price (low potential)
if blocked by one or more strong double or triple resistance areas.
|Target 1 Resistance
- Lists the resistance areas between the current stock price and Target 1.
- Target 2 is a price which may be reached on an extreme stock rally which occurs only 5% of the time or approximately 1-2 times every 6 months.
- A stock rarely remains at Target 2, some investors may want to sell at Target 2 to lock in good short term profits.