A couple of quick charts. The first, in keeping with the experiment of
the "simple" chart.
Buy and sell signals are triggered as the security (ACRT, white line) crosses
the magenta line (10 day weighted moving average).
geocities.com
The buy trigger would be generated with a close today of 13 1/4 or so.
This is one of the simplest uses of TA and is merely being used as an
example. It has, as you can see, been very effective with ACRT.
The problem with a system this simple is, if a stock enters a trendless period,
the in and out buys and sells could become excessive.
The seond chart is a closer view.. The surge at the close prevented
the day from being a classic hammer i.e. the close became too high, thus
extending the reach of the "real body".
geocities.com
However that surge created an engulfing line. Notice that Monday engulfed
Friday. This is considered bullish if near support, during a downtrend. The long
lower shadow is also bullish here as was the close at the high.
ACRT tested support at 12 and has held thus far at close.
In the top box, notice TRIX (green 20 day) and the MACD. Generally more
mid term indicators, both are still trending up. The MACD gave it's buy
signal during the move up in early March.
In the middle box the Stochastics (5,3,3) gave an unconfirmed buy signal.
The Chakin A/D (white line) is showing the highest accumulation since
early February, obviously a positive.
Most short term indicators have a slightly positive bias. They seem to be
following the action so far rather than leading. Mid term indicators remain
positive.
This chart looks pretty good but does not yet show the short term strength
that accompanied it's last move.
There was obviously a flurry of late activity towards the end of trading yesterday
and as that shakes out.....it will most likely determine today's direction.
All the usual caveats apply. Do your own FA and TA and then only use TA to
help determine entries and exits in stocks that you're comfortable with.
Stan |
