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 | 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…
20Nov2006 | S. Oakes | Comments Off | 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…
23Jul2006 | S. Oakes | Comments Off | 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…
23Jul2006 | S. Oakes | Comments Off | 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…
23Jul2006 | S. Oakes | Comments Off | 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…
23Jul2006 | S. Oakes | Comments Off | 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…
23Jul2006 | S. Oakes | Comments Off | ContinuedMomentum 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 | ContinuedThe 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 | 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…
23Jul2006 | S. Oakes | Comments Off | ContinuedDouble 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 | ContinuedOptimal 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 | ContinuedVolume 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 | ContinuedVolume 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 | ContinuedTrend 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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