SO SORRY for late my computer was broken! Hahahaha!!
As I said Most of GOOD Investors use this simple method! They use weekly candlestick and moving average 30 weeks!!
How to used it, check this:
1.If candlesticks already move below Moving Average 30 weeks, SELL IT!!
2.IfCandlesticks already move above Moving Average 30 weeks, BUY IT!!
SIMPLE is’nt it!! But you must remember the accuracy not 100% TRUE!! But almost 90%!!
Looks picture below:
If you are weekly trader, look picture below!!
FISRT METHOD
1.Buy at point A (2072)!! RIGHT, I already told you before!! Check here!!
2.Now find the nearest and the lowest support at point B(1850)!!
3.Make horizontal line between A and B, I say it as lineAB!
4.Then make line which has same length with lineAB, so LineAB = Line AC!!
5.C (2293) that’s your sell point!!
SECOND METHOD
1.Check CCI (Commodity Channel Index), I usually use 20days for CCI formula!!
2.After one week CCI line above 100, it will down!!
3.You can sell if CCI 20D already moved below 100 for one week (5 days in The Exchange Market)!!
I am convince you to know that MARKET IS VERY SLOW BULL!!
NEXT I WILL GIVE YOU A HINT ABOUT SELL YOU STOCK WHEN YOU ARE INVESTOR!!
Read More...Many people feel secure when they are in the mainstream. For this reason investors form a consensus opinion. They will find fact or the other people think and evidence that support their opinion. In the market this behavior leads super optimism just before crash, or super scary at the very bottom. People think reverse have good effect, and they do opposite act. Like Warren Buffet when people greedy he is afraid, when people afraid he is greedy!!
I want to tell you that CONTRARY OPINION (CO) is a good indicator tool when used properly. Unfortunately, not one investors in hundred really understand it, although every one and his or her broker wants to be sophisticated and think they are using CO. When everybody knows something, it isn’t worth knowing!!
You must understand that all kind of media is merely representing the psychology of the moment. Just be aware that’s it shows up time after in the press, and you have to learn to use it properly rather than letting it wrongly affect you. Many headlines reinforcing at the same sentiment.
From now, be aware of headlines and rumors. When this indicator finally speaks, and when it gets agreement from our other indicators, be sure that you are notice it, before its too late.
Read More...Bollinger Bands developed by John Bollinger. Bollinger Bands displayed with three lines. If you are short term trading used 10 day moving average, and 20 days moving average for intermediate term trading and 60 days for longer term trading. Price is tend to stay within upper and lower band.
The characteristic of Bollinger Bands is the space between two lines based on volatility of the prices. If price have high volatility the band begin more widen. During The Stagnant Price the band become narrow. Line in the middle is simple moving average line.
For The standard deviation I suggest you to used 1.5 till 2.5. Lower the standard deviation tighter The Bollinger Band, used this for 10 day moving average. Higher the standard deviation wider The Bollinger Band, this is good for 60 day moving average. Standard Deviation is a statistical term that provides a good indication of volatility. Uses this can make the bands react quickly to price movement and reflect periods of high and low volatility.
Click Picture to ZOOM:
BUY signal confirm happens when: Candlestick reach the lower band or moves below lower band. When candlestick penetrate the lower band and remain above the lower band and back to lower band. Second lower band lower than first one that’s good signal to buy. BULLISH condition confirmed when the price moves above the middle moving average!!
SELL signal confirmed when candlestick move above upper band. Or creates two tops. The BEARISH TREND happens when price cross down the middle band
Relative Strength Index has overbought and oversold line. If RSI line over 70% it calls overbought, RSI line under 30% it calls oversold. Watch if RSI line cross up 50% line its BULLISH trend, when RSI line cross down 50% line its BEARISH trend.
How to calculated Relative Strength Index? I use 30 days period. First, calculate the sum total gain price and divided by 30 it call Average gain. Second, calculate the sum total loss price and divided by 30, it call Average loss. Then divide average gain by average loss that’s RELATIVE STRENGTH INDEX. When average gain better that average loss RSI line will increase!!
Buy and Sell signal. You are day trader try to use 7 days period, when RSI line cross up 30% buy it when reach 70% sell your stock and wait till back 30% line. You are investor use 30 – 60 days period, buy stock if RSI line cross upside 50% line, sell it if cross downside 50% line!! Look Picture below:
Prices formed as the result between BUYER and SELLER. If seller push higher than buyer it is BEARISH, price will go down. If buyer push higher than seller it is BULLISH, price will go up.
Click Picture to ZOOM!!!
I used Dow Jones Industrial chart to help me to identified Support and Resistance. At May 2006 Dow reach its top position at 11700 then go back down to 10667 and next October 2006 Dow broke its resistance level (11700) and reach new high price!! At February 2007 reach NEW TOP AGAIN (12800) after that formed little hole, hoho BUYER getting more serious and break its top again (Resistance 12800). More-more buyer came for the party until it reach 14000, it went back down till 12800, then go back up again but it could not break its resistance LEVEL AT 14000 (October 2007), OH NOOOO TIME TO BEARISH!! TIME TO SELLL.
At December 2007 candlestick went down but did not break support 12800 (August 2007). Oh BUYER back again up up up up but not reached resistance 14000 (July 2007). The market slumped at January 2008, broke its support 12800 (August 2007). SELLER TOOK THE MARKET!!! Then made new STRONG support 11900 (January 2008). Till June DOW JONES INDUSTRIAL SLUMPED. Broke its STRONG support 11900 and BREAK BIG THREE YEARS SUPPORT 10677 (October 2008)!!
Since we would all have the same completely logical expectations, prices would only change when quarterly reports or relevant news was released, like politic issue, unemployment news, annual report, demand, and etc. Investors would seek "overlooked" fundamental data in an effort to find undervalued prices. This theory concludes that it is impossible to forecast prices, since prices already reflect everything. That the future can be found in the past
If prices are based on investor expectations, then knowing what a security should sell for (i.e., fundamental analysis) becomes less important than knowing what other investors expect it to sell for. That's not to say that knowing what a security should sell for isn't important--it is. But there is usually a fairly strong consensus of a stock's future earnings that the average investor cannot disprove.
Technical analysis is the process of analyzing a historical prices in an effort to determine probable future prices. This is done by comparing current price action (i.e., current expectations) with comparable historical price action to predict a reasonable outcome. The devout technician might define this process as the fact that history repeats itself while others would suffice to say that we should learn from the past. The roulette wheel In my experience, only a minority of technicians can consistently and accurately determine future prices. However, even if you are unable to accurately forecast prices, technical analysis can be used to consistently reduce your risks and improve your profits.
Contrary to popular belief, you do not need to know what a price will be in the future to make money. Your goal should simply be to making profitable trades. Even if your analysis is as simple as determining the long-, intermediate-, and short-term trends, you will have gained an edge that you would not have without technical analysis. While the company may have great earnings prospects and fundamentals, it just doesn't make sense to buy this stock until there is some technical analysis evidence in the price that trend is changing.
