Future Price Levels

[cpatte7372]

Hello,

Since the markets appear to be taking serious nose dive I thought I would ask you guys/girls a few questions.

Can someone tell how they go about determining where a stock price will be in say, 2 to 3 days? For example, I was reading some of the posts at Elite Trader and one guy said he purchased a security at $11 and that his calculations suggested that the stock would/could reach $13. Instead it tankded at $9. However, he didn't mentioned how he arrived at the price of $13. I wonder if one you guys can give me some ideas.

Cheers

Carlton

[DuaneG]

Hi Carlton,

I would suggest taking a look at the MOB--Quick Overview video that is available at eSignal University. This video is under the Advanced Get link and the Specific Tools Training sub-link on the left hand margin. I think you'll be impressed with it's accuracy. Hope this helps.

[cpatte7372]

Duane,

Thanks, I'll check it out.


Cheers


Carlton

[Gavishti]

Carlton,

There are many methods. Among them are:

• Elliott Waves
• Fibonacci Extensions
• Fibonacci Retracements
• Gann Fans
• Square of 9
• Andrew's Pitchfork
• Moving Averages
• Regression
• Price Channels
• Financial Condition relative to other companies in same industry
• Management Strength
• Technology Breakthrough
• ad infinitum

All work some of the time. None work all of the time. Some of these tools come with eSignal. Others you will have to purchase or create on your own. You will need to try them out and find the ones that work for you. The last few require extensive research and may not be feasible unless you have major financial resources. In the end the ones that you feel will produce an accurate estimate most of the time are the ones you should use.

All that being said, the market tends to do what it wants. You may find more success in learning to just ride the waves and not get overly concerned about price targets. Follow until you are stopped out. Being able to recognize when a wave is cresting or troughing may serve you better. Many of these tools will also help you in figuring that out.

Whatever approach you take, it takes time to build up the experience. There are no magic bullets. Just like surfing the ocean you will have many false starts and crashes before you become proficient. Just don't drown in the process of learning.