Hey! I've got a great new tool for all of you!
Have you ever heard of Three Line Break charts? Probably not, unless you've worked with Japanese traders, or have read Beyond Candlesticks, by Steve Nison. Three Line Break charts are used in Japan for identifying major trend reversals, and for giving buy and sell signals soon after the trend has reversed. They can be adjusted to be more or less sensitive to price movements, which is handy for fine tuning them to a particular stock's volatility.
I looked at both CREAF and VVUS charts for the past 90 sessions using a Three Line Break with High Sensitivity, and if you obeyed all the signals and played the trends in both directions, you could have made a great profit since October, rather than taking heavy losses, like most of us have. I'm really, really sorry that I didn't write the code to display these charts a few months ago, like I had planned.
I have lost thousands of dollars in CREAF, both realized and unrealized. If I had liquidated longs and sold short on TLB sell signals, and covered and gone long on TLB buy signals, I would have earned over $14/share traded since October. Depressing, but it's encouraging that the chart works so well.
So, check it out at webbindustries.com
Doug. |
