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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?

To: JimisJim who wrote (9112)	3/13/2007 7:49:31 PM
From: chowder	Respond to of 30229

Jim, momentum and trend analysis applies to anything that can be traded. Keep in mind, the momentum bands I spoke about are merely a tool to use, to help lock in some of your gains, when a stock moves 20% or more in under two weeks. This sort of explosive price movement, more often than not, will have that upside momentum lose some steam when people start to take profits. Therefore, the momentum bands show when that upside momentum starts to slow down and decline. This is where one may want to sell part of their position to lock in those windfall profits. The most important technical indicator of all is price. All other indicators merely confirm the strength or weakness of price movement. I don't use the other technical indicators to trigger my buy or sell decisions. I let price do that. PRICE is KING! Therefore, in looking at your chart of SDS, you've got a trading vehicle that is trending higher on above average volume, indicating professional buying. Most any technical indicator one might use (Stochastics, MACD, RSI, ADX or a number of others) will merely confirm that price is indeed showing strength at this time. Just looking at price and volume can tell me what all the other indicators will try to confirm. So, I focus on price and volume. Price trending higher on above average volume is bullish and I play it that way. It doesn't matter what price we pay for a stock if price is trending higher and is accompanied by professional buying. As long as the buying continues to show up, price is going higher. When the buying slows down, I use pivot points and momentum bands to tell me where to take some profits, even if the position is a long term buy & hold. I don't have to take profits on the entire position. So again, once in the trade, it's how we manage the position that determines our success or failure. I look to pivot points, the point on the chart that shows me price is failing to continue its current trend. The pivot point for SDS is $58.75, as shown on the chart. If price should fall below that pivot point, the odds increase that selling pressure will increase. It would be time to exit the position, in my opinion. It just so happens, the middle line of the momentum bands is at the pivot point level currently.