Education

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…

20Nov2006 | S. Oakes | Comments Off | Continued

Indicators: 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…

20Nov2006 | S. Oakes | Comments Off | Continued

Indicator – 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…

23Jul2006 | S. Oakes | Comments Off | Continued

Indicator – 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…

23Jul2006 | S. Oakes | Comments Off | Continued

Indicator – 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…

23Jul2006 | S. Oakes | Comments Off | Continued

Indicator – 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…

23Jul2006 | S. Oakes | Comments Off | Continued

Momentum 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…

23Jul2006 | S. Oakes | Comments Off | Continued

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…

23Jul2006 | S. Oakes | Comments Off | Continued

The Time Periods of a Trading Day

The following are very important shifts in trading throughout the day. Although this outline is geared for the day trader, longer term investors may be…

23Jul2006 | S. Oakes | Comments Off | Continued

Cup and Handle Reversal Pattern

Another common reversal setup is known as the “cup and handle” pattern as seen below:

The picture is self-explanatory ;)

23Jul2006 | S. Oakes | Comments Off | Continued

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…

23Jul2006 | S. Oakes | Comments Off | Continued

Double Top and Double Bottom Reversal Patterns

The next sets of patterns are very important and are the easiest to spot. The double top and bottom form when the stock tries to…

23Jul2006 | S. Oakes | Comments Off | Continued

Optimal Moving Average Positioning

Moving averages come in three kinds known as simple (SMA), weighted, or exponentially smoothed averages. An example of a 50-day moving average would be the…

23Jul2006 | S. Oakes | Comments Off | Continued

Volume Volume Volume Part II

In another example, a two to three day climb occurs with a star doji forming at the peak. This indecision coupled with low volume is…

23Jul2006 | S. Oakes | Comments Off | Continued

Volume Volume Volume Part I

Volume is one of the ultimate indicators. Volume can be associated with the amount of emotion that goes into a direction that the stock takes.…

23Jul2006 | S. Oakes | Comments Off | Continued

Trend Lines Part II

In a typical downtrend we see that the stock has broken through its support and begins a trend characterized by lower lows and lower highs.…

23Jul2006 | S. Oakes | Comments Off | Continued
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