How are Stock Configurations used to determine Buy and Short Signals?
Thanks to Zahorchak, Stock Configurations have been rather neatly classified into groupings to correspond with their appropriate Market Direction. We have taken Zahorchaks work a bit further by labeling the Stock Configuration groupings in such a way as to correspond with what we have identified as the 5 major Stages of Market Direction. In addition, thanks to Weinstein, we know we can participate in stock trading during both Bullish and Bearish Market conditions. We have applied some of Weinsteins wisdom about our ability to Short and Cover, to Zahorchaks Moving Averages methodology, thus making Stock Configurations bi-directional. Bottom-line, by knowing the Stage of the Market (i.e., Market Direction) and by knowing a Stock’s Configuration, we can determine whether a stock is a candidate for one’s portfolio via a Buy of Short transaction.
