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FloatCharts.com
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April 29, 2006
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Two stock charts appear below.
The first chart shows how the stock looked when it
appeared on our Weekly ABC Float Set-up List that went out to our Gold Package
Subscribers on March 10th, 2006. The second chart shows the resulting price
move. The purpose of these charts is to demonstrate the principles of Float
Analysis and the power of Float Charts.
Float Turnover Theory (The Basics) - When a company comes public it issues shares outstanding. The management always holds some percentage of these shares. What's left over and is sold to the public, is called the float or floating supply. Float Charts are all about tracking the floating supply in an attempt to see where the Smart Money is buying and selling. The gray rectangle on a Float Chart is known as a Float Turnover and changes from day to day much like a moving average. It shows the least amount of time it takes for the entire float to change hands once. The total amount of shares traded during the float turnover equals the floating supply. We simply add up the number of shares that traded over a given time frame until it equals a stock's float number. Imagine a stock's price that comes down and then goes sideways for one float turnover. The idea here is that during the sideways move new ownership has bought the float hoping that the price will move higher. Once the float is accumulated and held tight, any new demand drives the price upward. The upward price move is rarely straight up. More often it goes up in an A wave, then pulls back in a profit-taking B wave and then heads up again in a C wave. A close study of Float Charts reveals that VERY OFTEN the bottom of the B wave coincides with the dotted 50% Float Channel Line (see chart below). Our data base scans the market every night looking for stocks that are beginning to move higher right at this dotted line. They are known as ABC Float Set-Ups. MGP Ingredients Inc. (MGPI) Who says you can't time the market! STUDY BOTH
CHARTS BELOW Moving on Up!
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INFO ON OUR PREMIER FLOAT CHARTS WEB SITE Want to find stocks like those above? Check Out Steve's New Web Site! Consider subscribing to www.FloatCharts.com. We track Float Turnovers on over 7000 stocks and scan the market for ABC Float Set-Ups, Breakouts and Breakdowns that are poised to make big gains like the one shown above. Our Float Charts Central site is the world's premier site for Float Charts and Float Analysis. We also send out Stock Alerts and a Weekly Newsletter. Check us out! At www.FloatCharts.com we're always on the lookout for trading opportunities like the one above. We currently have a Silver ($30 a month) and a Gold ($75 a month) Package. Visit our homepage and see the results of some recent stock picks (near the bottom). You'll be amazed at the power of Float Charts and the returns our stock picks can generate. Our stock picks are based on the ideas found in Steve's book Float Analysis, Powerful Technical Indicators Using Price and Volume (Wiley, 2002). The book's former title was The Precision Profit Float Indicator (Marketplace Books, 2000). |
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