Charting 301
Indicators: Stochastics Part II
What good would I be as a resource if I did not provide you with an example on how you might go about using the stochastic indicator.
First, I needed to find a stock that has been trading sideways for…
20Nov2006 | Stephen Oakes | 0 comments | ContinuedIndicators: Stochastics Part I
Every technical investor has his or her favorite indicators. I have tried and tested dozens of indicators. What I found was that using only one indicator did not work. It did not give me the buy and sell signals in…
20Nov2006 | Stephen Oakes | 0 comments | ContinuedIndicator - Directional Movement Indicator (DMI)
When the DMI Indicator is selected, the stock chart will plot the Positive Directional Indicator (+DI), Negative Directional Indicator (-DI) and Average Directional Index (ADX - not Shown in graph below). +DI is green and -DI is red. +DI measures…
23Jul2006 | Stephen Oakes | 0 comments | ContinuedIndicator - Momentum
The Momentum indicator measures the amount that a security’s price has changed over a given time span. The interpretation of the Momentum indicator is identical to the interpretation of the Price ROC. Both indicators display the rate-of-change of a security’s…
23Jul2006 | Stephen Oakes | 0 comments | ContinuedIndicator - Moving Average Convergence Divergence (MACD)
The Moving Average Convergence Divergence(MACD)is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD was developed by Gerald Appel, publisher of Systems and Forecasts.The MACD is the difference between a 26-day and…
23Jul2006 | Stephen Oakes | 0 comments | ContinuedIndicator - Bollinger Bands
Some useful indicators that have been effective for me and some of my colleagues are Bollinger Bands, MACD, and DMI. Each of these indicators can be found at Bigcharts under interactive charting.
Bollinger Bands were created by John Bollinger and are similar…
23Jul2006 | Stephen Oakes | 0 comments | ContinuedMomentum Bearish Divergence
With the same rules applying to our buying signal using divergences in momentum compared to price, we will now follow this format to find such a point to sell:
- Find the highest prince on the chart. Once this price high has…
Momentum Bullish Divergence
To find a bullish divergence on daily charts, we will use a 3-month charting window. You may use charts that are greater than the 3-month period, but do not try this technique when looking at charts under the given 3-month…
23Jul2006 | Stephen Oakes | 0 comments | ContinuedCup and Handle Reversal Pattern
Another common reversal setup is known as the “cup and handle” pattern as seen below:
The picture is self-explanatory 
Head and Shoulders Reversal Pattern
Another setup is known as the “head and shoulders” pattern. In figure 20 we see that this pattern can be bullish or bearish. A bearish pattern forms by forming a person-like shape complete with shoulders and a head in the…
23Jul2006 | Stephen Oakes | 0 comments | Continued-
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