1. Bollinger bands: Set the period at 20 so that you can see the stocks breaking out from the MA 20.
Well from Learning yourself you know exactly who you are whether you are a pullback trader or momentum trader. In this chart you can see how Bhi broke out from the red colored line. That is MA 20. You can also see the blue bands spread out meaning an uptrend on this stock has already happened. Some traders wait for the break out so that they can be pretty sure that they will not have to wait for a long time. I bought at the support of .065 and sold it the other day at .073 I don't like selling when the sellers are already taking profit. I have slow hands I might sell at the bottom and let the others also profit from it they already push the price up after all. Whatever kind of trader you are you can see that you can profit if you bought the break out at the first day it rises the break out is at .066 if you will follow the middle band you still can profit if you sold at .75-.77.
2.) Guppy Multiple Moving Averages: This type of Charting uses various Moving averages to identify the trend. Here you can see the long term trend, the distribution, the accumulation, the reversal of the trend.
This is compose of short term Moving Averages to identify traders' activities. The color is the blue Moving averages composing of EMA 3, 5, 9, 11, 13, and 15. The other is for long term moving averages which identify investors' activities. The color is represented by the red lines composing of EMA 30, 35, 40, 45, 50, and 60. Finally for the confirmation of the trend we have MA 200 represented by the white line. When MA 200 is pointing up and is below the candles the trend is an uptrend. When MA 200 is pointing downward and is at the top of the prices the trend is down. When MA is straight it means the trend is in sideways and the stock is in the indecision mode. A break up or a break down is needed for confirmation.
The longer trendline is what we always follow as long as there is no signal for break in the trend is still our friend.
3. Aroon is one indicator to know the trend, the consolidation of the stocks and where the trend will change as well. I adapt this because of one purpose I always buy on the selling ranges. I am impulsive. I need an indicator that can control my impulses. Here there is a term called surge once reach stocks will consolidate again to get bwelo. If it is an uptrend stock we need to buy those dips so we can sell on those strengths once more.
Aroon up represents the bulls I chose green cause it is the color of the bulls. Aroon down is represented with orange the color of the bears. The thing to remember on this one is the crossing of the bullish aroon and the bearish aroon which happened on the first cross. 50 cross is a bullish cross in this case it crosses on the 53 aroon which is extremely bullish and a good buy. The parallel ones signifies consolidation. It is the indecision between buyers and sellers. For this one no crosses were made still the stock is on a bullish trend. Those indecision are also a good way to add volume to your stock. Volume is our key for a better profit opportunity. The selling opportunity comes when Aroon up is on it's surge That is the best time to lock in profits. Don't come back on the stock first while on consolidation level until a clear trend tells you other wise.
4. Alignment of the Stars and the Golden and death crosses
Alignment of the stars is composed of MA 20, 50 and 100. It is the MA's on the previous picture with Aroon indicator. Yellow is MA 20, green is MA 50 and purple for MA 100. If these 3 are aligned it represents the trend for the stock. Prices above the alignment are bullish trends.Prices below are bearish. Alignment of the stars is the alignment in proper order the shorter Moving averages should come first in an uptrend stock and vice versa for downtrend stocks.
Golden cross here is the crosses between ema 13 and MA 20. EMA 13 is represented by the teal color. Death cross happened when EMA 13 crosses down MA 20. Golden cross happened if MA 20 crosses down EMA 13. Death crosses are bearish. Golden Crosses are bullish.
5. Relative Strength Index (RSI) - This is too see if a stock is overbought or oversold level. This helps us in our decision making to buy, sell, hold, or to be wary or careful on a certain stock.
Here we can see that ALCO has an RSI of 94 already. At that range the stock is overbought already and is supposed to correct so it adviseable to sell already and be wary of the stock until you see a good price to buy it once more after the correction is made. After all the alignment of the stars is still intact.
6. Price Exhaust: I use this to see whether buyers are strong and sellers are thinning. When buyers are strong that's the moment I sell. When sellers are thinning that's the moment we buy.
7. Heikin Ashi Candles: The candles I use to see where to buy or sell Once a red candle shows up on an uptrend stage that is the time you need to sell. When a green candle starts appearing in a downtrend stage that is the time to buy. But then I don't wait for a red candle to appear. I sell once buyer is still buying the stock. Selling on the first red you see is actually chaotic. Sellers are already racing to still lock profits at the top especially if you are holding an illiquid stock. And I don't wait for the first green I check the stability of the price and if it holds I already buy it. I may buy some tranche on the ask side price and the other tranche is for the real support of the stock and wait until it get hit.
In determining the real trend I put together Bollinger, Guppy, Golden Crosses, Alignment of the stars. They look like this.
If you can't analyze it together just put them separately. I just put them together to save time. I separate the Aroon, Price exhaust and RSI cause they are making the picture small. There are still lots of indicators out there but these are the indicators that fits and controls me and make my buying and selling systematized than before. Find out what indicators fits you the most and can make a profit out of it.
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