How to Find Rolling Stocks

Rolling stocks are a type of stock that are cyclical by nature. You will see the stock increase to a certain amount and then fall back down to a certain level repeatedly. This type of stock rolls back and forth from high to low. They are beneficial because you can have a good idea of where they are headed in the future. If you are looking at a stock chart of a rolling stock, and the current prices near the historic high, you can generally feel comfortable that it will start to decline in value. The same principle applies in reverse. If the price of the stock is near the low, it should be ready to rebound and increase in the near future.

Paying for Signals

Perhaps the easiest way to find rolling stocks is to join a subscription rolling stock service. There are several companies that analyze stocks for you. They compile lists of rolling stocks that can be purchased. If you hire an outside company, you will not have to spend much time analyzing the markets yourself. For a nominal fee, you can have an expert do the hard work for you and you will simply be able to reap the rewards.

Analyzing the Charts

The alternative to subscribing to a rolling stock service is to try to locate the stocks yourself. While this may be a little more tedious and complicated, you should be able to find a few. In order to do this, you will need to have access to several stock charts. If you have a trading account with an online brokerage, pull up any stock chart that is featured on the exchanges. The stock chart should be all the information that you need to determine if a stock is a rolling stock.

First, you need to look analyze the stock using a prolonged period of time, such as one year. This will allow you to see some of the bigger repeating patterns with this particular stock. If you look at a time frame that is too small, you will not be able to determine if there are any patterns.

Then, review the upper level of the trading over the course of the year, and then take a look at the lower level. If the trading tends to take place in a small, narrow channel, then you are most likely looking at a rolling stock.

In order to find these stocks, you will need to be patient. You may have to look through many stock charts before you find one that could be classified as a rolling stock. They are not always easy to find, but are worth the effort it takes to find one.

Research is Always Key

All in all, the best investments are usually those that are researched extensively. Be sure to review the company financial statements, partners and other pertinent data before you invest. You want to be sure that there have not been any major changes with the rolling stock and that the economic factors surrounding the stock are still in place. You do not want to invest in a stock and find the company if filing for bankruptcy or that their services are no longer viable.

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