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FloatCharts.com
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July 8, 2006
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Two stock charts appear below. The first chart shows how the stock looked after an
breakdown alert was given by our Float Chart Central scanning system. 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 has a big price rise and then goes sideways for one
float turnover. The idea here is that during the
sideways move The Smart Money that
bought lower is getting out right at the top. The Dumb Money Crowd
that buys at exactly the wrong time is hoping the price will move
higher. Once the float has been bought by The Dumb Money Crowd,
the lack of new demand
causes the price to drop lower. Our data base scans the market every night looking for stocks that are
known as Float Turnover Breakdowns. These stocks are making top formations
and potentially can drop much lower.
STUDY BOTH
CHARTS BELOW
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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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