When market is unstable take profit from a stock within short time. In volatile, unstable, falling or bearish market you have to take quick decision. Have to enter quickly. Have to take profit quickly.
Here I am showing two simple charts, when united it works for me as an excellent Trading System.
To entry:
1. Wait for the price bar (upper chart) and see when it touches the lower curve, but dont enter.
2. If next day the histogram bar (lower chart) is bigger then the prevoius days bar, enter. If not bigger, or has same size dont enter.
To exit :
1. Wait for the price bar (upper chart) and see when it touches the upper curve, but dont exit.
2. If next day the histogram bar (lower chart) is smaller then the previous days bar, exit. If not smaller, or has same size dont enter.
Used chart : Bextex (latest data 4 August 2010)
Here I am showing two simple charts, when united it works for me as an excellent Trading System.
To entry:
1. Wait for the price bar (upper chart) and see when it touches the lower curve, but dont enter.
2. If next day the histogram bar (lower chart) is bigger then the prevoius days bar, enter. If not bigger, or has same size dont enter.
To exit :
1. Wait for the price bar (upper chart) and see when it touches the upper curve, but dont exit.
2. If next day the histogram bar (lower chart) is smaller then the previous days bar, exit. If not smaller, or has same size dont enter.
Used chart : Bextex (latest data 4 August 2010)
Chart summery :
ReplyDelete1. price bar touched the upper line. Next day price closed bellow the opening price(up. At the same day histogram bar became lower (bottom). And ultimately the stock went into short correction.
I think 2 and 3 will be now clear. If you dont understand, or have any question regarding the AFL code. let me know as comment.
not understood... require details
ReplyDeleteBro, first look at the upper chart. There are two white lines there. In the middle are the price bar. I said, when price bar touches the upper or lower white line, it is an indication that trend will change. In case of touching lower line, stock will be bullish soon, and in case of upper line stock will be bearish.
ReplyDeleteBut before taking decision, we have to make sure that the lower histogram chart also has changed it direction. For example, the number 2 option, that i have marked, touched the upper white line. But following day the histogram bar was more high, or longer. In such a case we can wait, until the histogram signals weakness by generating smaller bar.
Please watch the two chart again, and let me know is it clear to you.
What is the histogram in the bottom chart? Stoch?
ReplyDeleteBr Tom
Thnx, and the bottom chart is BULL AND BEAR BALANCE INDICATOR. Used Parameter Smooth 1 : 1, and Smooth 2:4. Top chart, as you know, is Adaptive price Zone.
ReplyDelete