Hi Bull
Just have a few seconds to try to explain the Magic Box. We have the greatest key of all, I think, with our understandings of seasonality involving a stock, Bull. But, every seasonal stock does not behave when you want them to. What we have been busy for the past couple of years on this board is come up with some great entry points for our seasonals, and our other stocks that we are diversifying with. So, we found the clues to the Williams & MACD indicators that occur whenever a stock makes growth, and we found the clues to the ROC and the ADX indicators, also. We found the clues to many of the bollinger band involvements; and the very interesting aroon indicator. On our Ultimate indicator template which we placed in the ibox of this board, you have about 14 various indicators set at proper times for a longer hold and decent entry. On our penny seasonal board, Bull, we placed the Quick hit template so people could copy and paste their own stocks. That template consist of just six simple and power indicators which, when they come together produce big, long lasting results.
As for the Magic Box I called it that because it was much easier to write then Dragon Swings His Tail. hehe. The Magic Box is very simple in its concept. When you see a stock close near the inside of the lower bollinger band(20), you have the beginnings of the box. And, the Aroon Down(8) will be automatically at 100.00, having the dominant position of power in the trend. That would be day number one, Bull. On day two, you are looking for the box to close itself in. Day one you have a dark shadowed candlestick, day two you want a white one. It doesn't need to be any specific size, Bull, but it needs to be some growth. Day two's aroon down will automatically fall to 87.50 and that will form the Magic Box. Now, your eyes are becoming more attentive to that stock because it can take off at any time from this position. Day three, if you can get growth, the stock will fall to aroon down 75.00 and the Williams(9) will hopefully rise up through the -50% to give you confidence that the stock has confirmed future growth. We have seen, Bull, that it may take sometime to get that growth, depending as you said on the volume. But, while the aroon down(8) is falling to zero, once it is at 75.00 you still have theoritically five more days of potential growth, more if the aroon up crosses over the aroon down at or above the 70. The box can form, Bull, also at the median support line. Black on day one, white on day two. But, you must continue to keep your eyes on the aroon down. Even at the median line Bull, the aroon down could have gotten back to 100.00 when the black candle appeared and you're looking now for the white candle to take the aroon down back down to the 87.50 level and initiate more upwards growth. These are but a few of the entries that we have discovered. Stick around Bull. I plan on writing them all down. I am glad to see Billkat sharing our ideas with other boards. So many of our new members are really picking it up. Goose and Bruce and Pilgrim are going to be fantastic. JP, Cats and Todd already are. Flota and I have designed this board to be as member friendly and teaching friendly as possible. We are always interested in the concepts of others. Shazzam taught Goosestradamus the use of the Full stock to help him understand the Magic Box confirmations. I am very grateful for Paul's feedback. I also welcome all of yours. I know you have great knowledge to help us with in the Options department. I hope this has helped you Bull. I must write it all down when I get this high blood pressure under control.
Bull, we have many scans now developed to help you find some pre-box setups if you want them. I am out of posts now but others have them. Let me know and I will give them to you. Good to see you here.
Kenstradamus.
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