Blog Archive

Sunday, May 8, 2011

Saturday

Trading with stochastic charts alone can be frustrating. By combining a stochastic with other technical analysis you can begin to make sense of it.

Below I have shown a time when the stochastic would have had you out long before the move was over. By reading the charts trend lines, chikou points and volume tell signs, you will see that the stochastic was really telling you about a very strong market.

Rather than jumping on those sell signals, look for confirmation. Here we see non-confirmation from the chikou break outs and trend lines.

Then use Andrews Pitchforks to provide the targets through symmetry as shown in Fridays post

Here's the same chart with the Ichimoku Kinko Hyo

I'll get into this in more detail some other day, but look for flat lines in the Kijun-sen and Tenkan-sen which signal a weakening of the move. Crossing the Kumo is a significant signal and flat Kumo lines indicate strong support or resistance.

No comments:

Post a Comment

Today's Feature

PALESTINE ON THE WORLD'S ANCIENT MAPS

The Palestine which "never existed" appeared on ancient maps, in atlases, encyclopedias and bibles worldwide.

Posted by The International Palestine Network - Gaza on Sunday, February 21, 2016