How I Use Float Chart Central To Find Winning Trades by Steve Woods

How I Use Float Chart Central To Find Winning Trades
by Steve Woods

For Silver & Gold Subscribers
1) To find stocks to go long start with the Daily Breakdown List.  This is rather counter-intuitive because you may think that the Breakdown list is just for stocks that are moving lower.  Actually stocks that are about to move higher often start right at the lower float channel line.  So when stocks come down and hit the line but reverse higher then they become excellent buy candidates.  See an Example of a Stock Finding Support at its Lower Float Channel Line.

So click on the % Change Button and list the stocks that are moving higher on the day.  These are the stocks that found support at their lower float channel line and are potentially bouncing higher.  Look for stocks that are just kissing the lower line and finding support.  The strongest one's also will have a day of strength in the background.

2) Then do the same thing by looking at the Weekly Breakdown List
Again click on the % Change Button and list the stocks that are moving higher on the week. 

3) Next look at the Daily Breakout List
Click on % Avg Vol and list the stocks that have made breakouts on VERY BIG volume.  These are the only breakouts that I recommend considering for a buy.  The descending top float channel line is a strong resistance line and breakouts often fail and move lower.  The bigger the volume on the breakout the greater the likelihood that the stock will move higher.

Next I look at "Daily Breakouts"
I always am on the lookout for stocks that are breaking out from float turnover bases in a rising trend particularly those that are just above a bottom formation. These are VERY powerful! I personally don't like to buy breakouts at a bottom as they can easily fall back in search of support at their 50% float channel line. When I look at the breakouts page I always click on the word "% Avg Vol" I want the list in descending order so I can see which stocks are moving up on big volume that is much greater than its average volume of the last 50 bars on the chart.

For Gold Subscribers

Then Go the Start with "Today's ABC Float Set-Ups LONG"
This is our premium service and is the best place to find great trades on a day to day basis.  Once you're there, click on the column heading that says "# Bars Since Price" This button is like a toggle switch that changes the list to either ascending or descending order. I want the list in ascending order with the "0's" (zeroes) at the top. These "0" (zero) stocks have just corrected down from all time high price levels. This means that when they move back up and break into new high ground there won't be any prices way back several months or years ago that might act as a resistance level. The "0" stocks have the greatest likelihood of continuing their up-trend price moves so that's where I start my search. I like stocks that have floats of 50 million shares or less and that have float turnovers of 50 days or less. In my experience these are the stocks with the greatest chance of capital appreciation. What I like to see in a stock is what my teacher Tom O'Brien calls quality of volume. This where the stock is moving up on expanding volume and moving lower on declining volume. I also always look for "Days of Strength in the Background" which I define as days that made higher highs and higher lows than the day before and did so on greater volume than the day before. I like to see these at or near the level of the 50% Float Channel line that the stock is currently at and I like them in the back of the current float turnover. These are areas where there were plenty of buyers in the past and are likely to have plenty of buyers at this level again.





Next I look at the "Weekly ABC Float Set-Ups LONG" and go through the same process as I do for "Today's ABC Float Set-Ups LONG."

Then I look at "Weekly Breakouts" using the same process as I do for the Daily Breakouts

Another great place to look is in the Archives of the Daily ABC Float Set-Ups of the Last 60 Days and Daily Breakouts of the Last 60 Days. Click on the column heading that says "% Change" and this will list the percentage change of previous stock picks. Go down the list to those stocks that are already up 3% to 5% and you find stocks that are bouncing higher back toward their swing highs from which they corrected lower.  I then also look at the weekly lists of ABC Set-Ups and Breakouts.

I also like to look at the Daily Breakdowns of the Last 60 Days.  To find stocks that are bouncing higher off of their lower Float Channel line I look at the list for stocks with negative percentages.  For shorting stocks the Daily Breakouts of the Last 60 Days is also a place to look for stocks that are dropping away from their top Float Channel lines.  On this list I also look at stocks with negative percentage changes.