DOCSLIB.ORG

The Candlestick Forecaster

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Candlestick Forecaster The Candlestick Forecaster Samurai Edition User Manual Copyright Ó 2000 Highest Summit Technologies Sdn Bhd. All Rights Reserved. LICENCE AGREEMENT THE CANDLESTICK FORECASTERÒ software constitutes a CD having copyrighted computer software accompanied by a copyrighted user manual in which all copyrights and ownership rights are owned only by Highest Summit Technologies Sdn Bhd (HST). HST grants to you a non-exclusive license to use a copy of The Candlestick Forecaster software on a single computer and the terms of this grant is effective unless violated. You may call and discuss with us by telephone any questions about the installation and use of The Candlestick Forecaster software by calling our office at (603) 245-5877, fax us at (603) 245-6792 or email us at [email protected]. We reserve the right to discontinue technical support at anytime without notice to you. You are not entitled to sub-license, rent, lease, sell, pledge or otherwise transfer or distribute the original copy of The Candlestick Forecaster software. Modification, disassembly, reverse engineering or creating derivative works based on the software or any portion thereof is expressly prohibited. Copying of the manual is also prohibited. Breach of these provisions automatically terminates this agreement and subjects you to further legal implications. The Candlestick Forecaster is warranted for ninety (90) days from the date of purchase to be free of defects in materials and workmanship under normal use. To obtain replacement of any material under this warranty, you must return the inaccurate CD or copy of the manual to us within the warranty period or notify us in writing within the warranty period that you have found an inaccuracy in The Candlestick Forecaster software and then return the materials to us. This limited warranty covers the original user (the purchaser) and HST makes no other express warranties. ANY AND ALL IMPLIED WARRANTIES RELATING HERETO ARE LIMITED IN DURATION TO THIS NINETY-DAY WARRANTY PERIOD. REPLACEMENT OF CD OR THE MANUAL IS YOUR EXCLUSIVE REMEDY AND SOLE MEASURE OF RECOVERABLE DAMAGES. THE CD AND THE MANUAL IS LICENSED “AS IS” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. HST DOES NOT WARRANT THAT ANY FUNCTIONS CONTAINED IN THIS PACKAGE WILL MEET YOUR MANUAL REQUIREMENT OR THAT Copyright Ó 2000 Highest Summit Technologies Sdn Bhd. All Rights Reserved. YOUR USE OF THE PACKAGE WILL BE UNINTERUPTED OR ERROR FREE. WE SHALL HAVE NO LIABILITY TO YOU OR ANY THIRD PARTY REGARDING THE CANDLESTICK FORECASTER SOFTWARE IN WARRANTY, CONTRACT, AND TORT OR OTHERWISE. IN NO EVENT WILL HST BE LIABLE FOR ANY DIRECT, INCIDENTAL, SPECIAL, INDIRECT, GENERAL OR CONSEQUENTIAL DAMAGE OR LOSS OF ANY NATURE (SUCH AS DAMAGE TO PROPERTY, DAMAGES RESULTING FROM INACCURACY, INCOMPLETENESS, SOFTWARE INSTABILITY, CLAIMS FROM USER OR THIRD PARTIES LOSS OF PROFITS OR FINANCIAL INJURY TO PERSONS) WHICH MAY ARISE IN CONNECTION WITH THE USE OR INABILITY TO USE THE PROGRAM OR MANUAL. THIS CLAUSE SHALL SURVIVE FAILURE OF ANY EXCLUSIVE REMEDY. IMPORTANT NOTE Investments involve risks, including possible loss of principal and other losses. This program is designed to provide a training tool for the understanding of technical analysis of the financial markets. It is licensed to the End-User with the understanding that HST is not engaged in rendering any investment or other professional advice. If investment or other professional advice is required, the services of a competent professional person should be sought. HST will not be responsible for any losses or lost profits resulting from investment decisions based on the use of this program, information obtained through use of this program, or otherwise. The laws of Malaysia govern this agreement. In the event a provision of this Agreement shall be held unenforceable, it shall be deemed severable from the remaining provisions and shall in no way affect the validity or enforceability of this Agreement. Copyright Ó 2000 Highest Summit Technologies Sdn Bhd. All Rights Reserved. Copyright Ó 2000 Highest Summit Technologies Sdn Bhd. All Rights Reserved. INDEX CHAPTER 1: INTRODUCTION WELCOME ………………………………………………………… 1 DOCUMENT CONVENTIONS ……………………………………. 3 CHAPTER 2: GETTING STARTED HARDWARE REQUIREMENTS …………………………………... 5 PRE-INSTALLATION CHECK LIST ………………………………. 6 INSTALLING THE SAMURAI ……………………………………. 7 LAUNCHING SAMURAI FROM WINDOWS ……………………. 7 CANDLESTICK FORECASTER MAIN SCREEN ………………... 8 SETTING THE PROGRAM DEFAULT …………………………… 9 ACCESSING SAMPLE DATA …………………………………….. 10 CHAPTER 3: OVERVIEW TRADING WITH CANDLESTICK ANALYSIS …………………... 11 WHAT CANDLESTICKS REPRESENT? ……………………. 14 SAMURAI CANDLE TOOLS …………………………………….... 17 THE CANDLE BOX ………………………………………….. 17 THE ANALYSIS WINDOW …………………………………... 18 THE CANDLEWATCHÔ …………………………………….. 19 THE CANDLEVISIONÔ ……………………………………... 20 PROFIT TESTING MODULE ………………………………… 21 TRADER'S LOG ………………………………………………. 22 CHAPTER 4: NAVIGATING THROUGH SAMURAI MOVING AROUND IN SAMURAI ……………………………….. 23 THE MENUS ………………………………………………………... 24 THE FILE MENU ……………………………………………... 25 THE DISPLAY MENU ………………………………………... 25 THE OPTIONS MENU ………………………………………... 26 THE QUICK ARROW MENU ………………………………... 26 THE CANDLEWATCHÔ MENU ……………………………. 27 THE CANDLEVISIONÔ MENU …………………………….. 27 THE DOWNLOAD MENU ……………………………………. 28 THE WINDOWS MENU ……………………………………… 28 THE HELP MENU ……………………………………………. 29 KEYBOARD SHORTCUTS ………………………………………... 30 SPEED BUTTONS ………………………………………………….. 31 RIGHT MOUSE BUTTON POP-UP MENUS ……………………… 32 BEGIN ANALYSIS ……………………………………………. 32 CHART OPTION ……………………………………………… 33 LIBRARY OPTIONS ………………………………………….. 34 TECHNICAL INDICATORS …………………………………. 35 Copyright Ó 2000 Highest Summit Technologies Sdn Bhd. All Rights Reserved. CANDLEWATCHÔ …………………………………………... 36 CANDLEVISIONÔ …………………………………………… 36 CHAPTER 5: GATHERING & MODIFYING DATA DAILY DATA UPDATES ………………………………………….. 37 MANUAL ENTRY FROM DISK …………………………………... 38 EDIT SPECIFIC PRICE DATA ………………………………. 38 CHAPTER 6: MANIPULATING CHARTS LOADING CHARTS ……………………………………………….. 39 CHANGING THE FILE TYPE ……………………………………... 39 GROUPING …………………………………………………………. 42 SETUP CHART TABS ………………………………………... 42 CHANGING THE APPEARANCE OF THE CHART ……………... 44 TECHNICAL INDICATORS ………………………………… 45 LIBRARY SETTINGS ………………………………………… 46 CHART OPTIONS …………………………………………….. 47 DIRECTORY SETTINGS …………………………………….. 48 COMPRESSING DATA …………………………………………….. 49 CHANGING THE INDICATORS DISPLAYED ON YOUR SCREEN.. 51 DISPLAYING TECHNICAL INDICATORS ………………… 51 STOCHASTIC OSCILLATOR …………………………... 52 MOVING AVERAGES …………………………………... 53 RSI – RELATIVE STRENGTH INDEX …………………. 54 RMI – RELATIVE MOMENTUM INDEX ……………… 55 WILLIAMS PERCENT RETRACEMENT ………………. 56 DISPLAYING VOLUME ………………………………… 57 LEGENDS ………………………………………………… 58 SAVING CUSTOM PAGES AND PRINTING CHARTS …………. 59 SAVING CUSTOM PAGES …………………………………... 59 PRINTING CHARTS ………………………………………….. 60 KEEPING NOTES WITH TRADER'S LOG ……………………….. 62 CHAPTER 7: ANALYZING CHARTS MANIPULATING THE CANDLE POINTER ………………………. 63 ANALYZING A CANDLE …………………………………………. 63 USING CANDLEWATCHÔ ……………………………………….. 65 SELECTING FILES TO WATCH ……………………………. 66 STARTING THE CANDLEWATCHÔ ………………………. 68 THE CANDLEWATCHÔ REPORT …………………………. 70 USING CANDLEVISIONÔ ………………………………………... 72 STARTING THE CANDLEVISIONÔ ……………………….. 73 CANDLEVISIONÔ FLAGS ………………………………….. 76 WHAT ARE CANDLEVISIONÔ FLAGS? ……………... 76 EXPLANATION OF VISION FLAGS …………………... 77 DEMARK SEQUANTIAL FLAGS ………………………. 79 Copyright Ó 2000 Highest Summit Technologies Sdn Bhd. All Rights Reserved. WHY VISION FLAGS ARE IMPORTANT ……………… 80 WHEN TO USE VISION FLAGS ……………………….. 80 PROFIT TESTING MODULE ……………………………………… 81 SETTING THE OPTIONS …………………………………….. 82 CHAPTER 8: TECHNICAL SUPPORT CANDLE ASSIST …………………………………………………... 85 APPENDIX CUSTOM PAGES …………………………………………………... 87 MAIN MENU AND HOT KEYS FUNCTIONS …………………… 88 NEW TOOL BAR FUNCTIONS …………………………………… 89 EXTENDED PATTERN GROUPS .………………………………… 93 CONFIRMATION …………………………………………….. 93 CONTINUATION ……………………………………………... 95 A BUY SCENARIO ………………………………………. 96 CONFLUENCE ………………………………………………... 98 CLUES AND SUGGESTION FROM CANDLESTICKS ………….. 100 THREE LINE NEW PRICE BREAK ……………………………….. 102 THREE LINE NEW PRICE BREAK TRADING RULES ……... 103 TOM DEMARK SEQUENTIAL PATTERNS ……………………... 105 THE SETUP …………………………………………………… 105 TAKAHIRO HIKITA PATTERNS …………………………………. 107 TRENDING CANDLE/BODY REVERSAL PRINCIPLE …………. 108 A TRENDING CANDLE (TC) ………………………………... 108 A BODY REVERSAL (BR) …………………………………... 109 AN UPWARD TREND ………………………………………... 110 A TREND REVERSAL ………………………………………... 111 A BULLISH TREND ………………………………………….. 112 A BEARISH TREND ………………………………………….. 113 GAP IN TREND ……………………………………………….. 114 TREND-STOP LEVEL ………………………………………... 115 VALID TC/BR ………………………………………………… 115 ADVANTAGES AND PROPERTIES OF THE TC/BR SYSTEM …... 116 TRADING TIPS WITH THE TC/BR SYSTEM ……………………. 118 GLOSSARY BASIC CANDLE FORMATIONS ………………………………….. 121 RECOGNISING DAILY CANDLE PATTERNS …………………... 122 THE EMPTY (WHITE OR RED) POLE LINES .…………………... 122 PATTERN DESCRIPTION …………………………………………. 122 PATTERN INTERPRETATION ……………………………………. 125 FULL (BLACK) POLE LINES ……………………………………... 128 PATTERN DESCRIPTION …………………………………………. 128 PATTERN INTERPRETATION ……………………………………. 130 THE LINE AND STAR CANDLE ………………………………….. 133 Copyright Ó 2000 Highest Summit Technologies Sdn Bhd. All Rights Reserved. PATTERN DESCRIPTION …………………………………………. 133 PATTERN INTERPRETATION ……………………………………. 134 MULTIPLE CANDLE PATTERNS
Load more

Recommended publications
  • Free Stock Screener Page 1
    Free Stock Screener www.dojispace.com Page 1 Disclaimer The information provided is not to be considered as a recommendation to buy certain stocks and is provided solely as an information resource to help traders make their own decisions. Past performance is no guarantee of future success. It is important to note that no system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using The Shocking Indicator will provide information that guarantees profits or ensures freedom from losses. Copyright © 2005-2012. All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, without written prior permission from the author. Free Stock Screener www.dojispace.com Page 2 Bullish Engulfing Pattern is one of the strongest patterns that generates a buying signal in candlestick charting and is one of my favorites. The following figure shows how the Bullish Engulfing Pattern looks like. The following conditions must be met for a pattern to be a bullish engulfing. 1. The stock is in a downtrend (short term or long term) 2. The first candle is a red candle (down day) and the second candle must be white (up day) 3. The body of the second candle must completely engulfs the first candle. The following conditions strengthen the buy signal 1. The trading volume is higher than usual on the engulfing day 2. The engulfing candle engulfs multiple previous down days. 3. The stock gap up or trading higher the next day after the bullish engulfing pattern is formed.
    [Show full text]
  • Trend Following Algorithms in Automated Derivatives Market Trading ⇑ Simon Fong , Yain-Whar Si, Jackie Tai
    Expert Systems with Applications 39 (2012) 11378–11390 Contents lists available at SciVerse ScienceDirect Expert Systems with Applications journal homepage: www.elsevier.com/locate/eswa Trend following algorithms in automated derivatives market trading ⇑ Simon Fong , Yain-Whar Si, Jackie Tai Department of Computer and Information Science, University of Macau, Macau article info abstract Keywords: Trend following (TF) is trading philosophy by which buying/selling decisions are made solely according to Trend following the observed market trend. For many years, many manifestations of TF such as a software program called Automated trading system Turtle Trader, for example, emerged in the industry. Surprisingly little has been studied in academic Futures contracts research about its algorithms and applications. Unlike financial forecasting, TF does not predict any mar- Mechanical trading ket movement; instead it identifies a trend at early time of the day, and trades automatically afterwards by a pre-defined strategy regardless of the moving market directions during run time. Trend following trading has been popular among speculators. However it remains as a trading method where human judgment is applied in setting the rules (aka the strategy) manually. Subsequently the TF strategy is exe- cuted in pure objective operational manner. Finding the correct strategy at the beginning is crucial in TF. This usually involves human intervention in first identifying a trend, and configuring when to place an order and close it out, when certain conditions are met. In this paper, we evaluated and compared a col- lection of TF algorithms that can be programmed in a computer system for automated trading. In partic- ular, a new version of TF called trend recalling model is presented.
    [Show full text]
  • FOREX WAVE THEORY.Pdf
    FOREX WAVE THEORY This page intentionally left blank FOREX WAVE THEORY A Technical Analysis for Spot and Futures Currency Traders JAMES L. BICKFORD McGraw-Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2007 by The McGraw-Hill Companies. All rights reserved. Manufactured in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. 0-07-151046-X The material in this eBook also appears in the print version of this title: 0-07-149302-6. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales pro- motions, or for use in corporate training programs. For more information, please contact George Hoare, Special Sales, at [email protected] or (212) 904-4069. TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licen- sors reserve all rights in and to the work. Use of this work is subject to these terms.
    [Show full text]
  • Forex Training Summary and Quiz – Stochastic Oscillator in Forex
    EXCHANGE RATES FOREX TRADING MONEY TRANSFERS CURRENCY HEDGING ABOUT US MY ACCOUNT HELP DESK SEARCH U.S. Why OANDA Products Learn News & Analysis Home Learn Forex Technical Analy sis Stochastic Oscillator Forex Training Summary and Quiz LESSON 4: STOCHASTIC OSCILLATOR Sign in or Register with OANDA Forex Training Summary and Quiz Stochastic Oscillator in Forex Stochastic Oscillators w ere developed in the late 1950s by George C. Lane and are used to help predict the future direction of an exchange rate. The Oscillator scale ranges from 0 to 100. When calculating the strength of a trend, the Stochastic Oscillator defines and uptrend as the period of time w hen rates remain equal to or higher than the previous close, w hile a downtrend is the period of time w hen rates remain equal to or low er than the previous close. The Full Stochastic consists of tw o stochastic lines - %K and %D w here: %K tracks the current rate for the currency pair %D is a moving average based on the %K line - the fact that it is an average of %K means that it w ill produce a "smoothed out" version of %K The %K line is commonly referred to as the Fast Stochastic as it moves w ith changes in the spot rate w hile the %D line - w hich is a moving average of the %K line - reacts more slow ly to rate changes. For this reason, it is often referred to as the Slow Stochastic. Crossovers occur w hen the %K line intersects the %D line.
    [Show full text]
  • Stochastic Pop & Drop Strategies
    Stochastic Pop & Drop Strategies Establish a Trading Bias •Establish a short-term trading bias with a long-term indicator. •Traders look for bullish setups when the bias is bullish and bearish setups when the bias is bearish. •Trading in the direction of this bias is like riding a bike with the wind at your back. The chances of success are higher when the bigger trend is in your favor. •Use the weekly Stochastic Oscillator to define the trading bias. •In particular, the trading bias is deemed bullish when the weekly 14-period Stochastic Oscillator is above 50 and rising, and vice versa for bearish bias •Use a 70-period daily Stochastic Oscillator so all indicators can be displayed on the chart **This timeframe is simply five times the 14-day timeframe. Stochastic Pop Stochastic Pop Buy Signal •70-day Stochastic Oscillator is above 50 •14-day Stochastic Oscillator surges above 80 •Stock rises on high volume and/or breaks consolidation resistance. •Candle pattern confirmation Stochastic Pop •Once the bullish prerequisites are in place, a buy signal triggers when the 14-day Stochastic Oscillator surges above 80 and the stock breaks out on above average volume. •Consolidation breakouts are preferred when using this strategy (ie Box range) •Do not ignore high volume signals that do not produce breakouts •Sometimes the initial high-volume surge is a precursor to a breakout Box Range / Consolidation Trending Market Trending Market Trending Market Trending Market / Box Range Stochastics Stochastic Drop Stochastic Drop Sell Signal •70-day Stochastic Oscillator is below 50 •14-day Stochastic Oscillator plunges below 20 •Stock declines on high volume and/or breaks consolidation support.
    [Show full text]
  • Trading Strategies Using Stochastic
    ANALYSIS TOOLS By Ng Ee Hwa, ChartNexus Market Strategist TRADING STRATEGIES USING STOCHASTIC In the aftermath of the global market correction following the big drop in the Chinese stock market indices in Feb 2007, investors have returned to the markets with a vengeance pushing the indices to scale new heights almost daily. However with recent moves by the Chinese authorities to cool the bullishness through measures such as the increase in stamp duties, the Chinese stock markets have again dropped significantly in the first few days of June 2007. This example of wild swings in the market sentiment can cause serious damage to the retail investor’s pocket, especially those uneducated in the forces at play in the stock market. Consequently it is vital that investors and traders are well-equipped in technical analysis tools to time the market effectively. This article will look at one of the tools in Technical Analysis indicators called Stochastic, a momentum indicator that shows clear bullish and bearish signals. Stochastic is a momentum oscillator oscillators that oscillate in a fixed range, an developed by George C.Lane in the late 1950s. overbought and oversold condition can be Lane noticed that in an up trending stock, prices specified. Based on his trading experience, Lane will usually make higher highs and the daily closing defined the overbought and oversold region for price will tend to accumulate near the extreme the Stochastic value to be above 80 and below highs of the “look back” periods. Similarly, a down 20 respectively. He deemed that a Stochastic value trending stock demonstrated the same behavior above 80 or below 20 may signal that a price trend of which the daily closing price tends to reversal may be imminent.
    [Show full text]
  • Technical-Analysis-Bloomberg.Pdf
    TECHNICAL ANALYSIS Handbook 2003 Bloomberg L.P. All rights reserved. 1 There are two principles of analysis used to forecast price movements in the financial markets -- fundamental analysis and technical analysis. Fundamental analysis, depending on the market being analyzed, can deal with economic factors that focus mainly on supply and demand (commodities) or valuing a company based upon its financial strength (equities). Fundamental analysis helps to determine what to buy or sell. Technical analysis is solely the study of market, or price action through the use of graphs and charts. Technical analysis helps to determine when to buy and sell. Technical analysis has been used for thousands of years and can be applied to any market, an advantage over fundamental analysis. Most advocates of technical analysis, also called technicians, believe it is very likely for an investor to overlook some piece of fundamental information that could substantially affect the market. This fact, the technician believes, discourages the sole use of fundamental analysis. Technicians believe that the study of market action will tell all; that each and every fundamental aspect will be revealed through market action. Market action includes three principal sources of information available to the technician -- price, volume, and open interest. Technical analysis is based upon three main premises; 1) Market action discounts everything; 2) Prices move in trends; and 3) History repeats itself. This manual was designed to help introduce the technical indicators that are available on The Bloomberg Professional Service. Each technical indicator is presented using the suggested settings developed by the creator, but can be altered to reflect the users’ preference.
    [Show full text]
  • A Machine Learning Approach
    0DVWHU7KHVLV 6RIWZDUH(QJLQHHULQJ 7KHVLVQR06( $XJXVW $0DFKLQHOHDUQLQJDSSURDFK ,QILQDQFLDOPDUNHWV &KULVWLDQ(Z| Department of Software Engineering and Computer Science Blekinge Institute of Technology Box 520 S E – 372 25 Ronneby i Sweden This thesis is submitted to the Department of Software Engineering and Computer Science at Blekinge Institute of Technology in partial fulfillment of the requirements for the degree of Master of Science in Software Engineering. The thesis is equivalent to 20 weeks of full time studies. &RQWDFW,QIRUPDWLRQ Author: Christian Ewö Address: Solvägen 11, s-39351 Kalmar, SWEDEN E-mail: [email protected] Phone: +46 739803781 External advisor: Dr. Peter Andras The University of Newcastle upon Tyne Address: Claremont Tower, School of Computing Science, University of Newcastle Phone: +44 191 2227946 University advisor: Prof. Paul Davidsson Department of Software Engineering and Computer Science Department of Internet : www.bth.se/ipd Software Engineering and Computer Science Phone : +46 457 38 50 00 Blekinge Institute of Technology Fax : + 46 457 271 25 Box 520 S E – 372 25 Ronneby ii Sweden $%675$&7 In this work we compare the prediction performance of three optimized technical indicators with a Support Vector Machine Neural Network. For the indicator part we picked the common used indicators: Relative Strength Index, Moving Average Convergence Divergence and Stochastic Oscillator. For the Support Vector Machine we used a radial-basis kernel function and regression mode. The techniques were applied on financial time series brought from the Swedish stock market. The comparison and the promising results should be of interest for both finance people using the techniques in practice, as well as software companies and similar considering to implement the techniques in their products.
    [Show full text]
  • PULSESCAN SWING VIX (E-Mini S&P 500) Index Futures Daily Market
    THE INVESTORS EDGE PULSESCAN SWING VIX (E-mini S&P 500) Index Futures Daily Market FORECAST Wednesday Sept 10, 2003. 07.30am EST. Pulse Scan Daily Forecast By Pulse Scan Technology http://pulsescan.tripod.com/pulsescantechnology Daily Forecasts Kindly note that forecasts are updated weekdays between 7:30p.m. And 09:30a.m. (EST). Please click on the link above or below to access the full website. Good luck and good trades. Also, do to changing market conditions the below commentary and its precise entry and exit points, stop-loss levels and positions could change without notice. Positions also could be liquidated, and/or new positions added without notice. Thus, the below commentary could change so be aware of this before trading. If you have any questions or if for any reason you don't receive your Daily Forecast please feel free to call me @ (240) 299-5447 or e-mail me @ [email protected] ____________________________________________________________________________________ MARKET OUTLOOK: E-mini S&P 500 / $SPX Early US session (TODAYS TECHNICALS) CHICAGO MERCANTILE 50 DAY TREND PROJECTED Close Pulse Scan SWING VIX EXCHANGE CME FUTURES CONTRACTS Ticker Symbol: ESU3 Support @ 982.50 E-mini S&P 500 Intra-Day Support @ 1018.00 Below 1024.00 + .40 Overbought! (GLOBEX) DayTrade / Volatility Buy / Sell Entry Point BREAK-OUT Stop-Loss & Recommendations / Profit Target ESU3 / $SPX MARKET TYPE: BREAK-OUT [email protected] STOP-LOSS: TYPE 2 E-mini S&P 500 * BUY STOP LIMIT @ 1027.75 Intra-Day [email protected] @ 7.25 Points / @ *3Points FUTURES (GLOBEX) *MARKET WATCH: (For a definition of "Market Types" see below) Wait for the Break-Out after the opening bell @ 9:30am EST before entry today.
    [Show full text]
  • Momentum Indicators & Oscillators
    Module 12 Momentum Indicators & Oscillators Oscillators or Indicators Now we will talk about momentum indicators . The term “momentum” refers to the velocity of a price trend. This indicator measures whether a rising trend is accelerating or decelerating or whether prices are declining at a faster or slower pace. Intraday Momentum Index - IMI . The Intraday Momentum Index (IMI) was developed by Tushar Chande. It is a cross-breed between the RSI and Candlestick Analysis . The calculation of the IMI uses the relationship between the intraday opening and closing prices to determine whether the day is "up" or "down." If the close is above the open, it is an up day. If the close is below the open it is a down day. Therein lies its tie to candlestick charting. For those familiar with Candlestick charting, the IMI separates the black and white candlesticks and performs an RSI calculation on the Candlestick bodies. Relative Strength Index - RSI The Relative Strength Index (RSI) is a popular oscillator used by traders. It was first introduced by J. Welles Wilder in an article in ‘Commodities’ (now known as ‘Futures’) magazine in June, 1978. Step-by-step instructions on calculating and interpreting the RSI are also provided in Mr. Wilder's book, ‘New Concepts in Technical Trading Systems ‘. The name "Relative Strength Index" is slightly misleading as the RSI does not compare the relative strength of two securities, but the internal strength of a single security. A more appropriate name might be "Internal Strength Index." Relative Strength Index - RSI The RSI is a fairly simple formula, but is difficult to explain without pages of examples.
    [Show full text]
  • MACD Rollercoaster Forex Strategy with Stochastic Indicator
    MACD Rollercoaster Forex Strategy With Stochastic Indicator This strategy combines the popular MACD trend-following strategy and classic Stochastic oscillator rebound strategy. It is known that the Stochastic indicator works badly in trending markets. In other words, trend distorts the Stochastic indicator readings and produces false signals. In its turn, the MACD indicator gives false signals during stagnating, lateral movements of the market. The combination of the two indicators aims to take the best qualities of each. Let’s getting started... SHORT DESCRIPTION OF STOCHASTIC There are two components of the Stochastic oscillator: The %K and the %D lines. The %K called Stochastic line is the main line and represents Stochastic oscillation of the price for the last N bars. %D or the Signal line represents Moving Average of the %K line and shows momentum and trend of the indicator. As the classic oscillator, Stochastic ranges between 100 and 0. Ground rules for the Stochastic Oscillator: Stochastic line %K drops below 20 – asset is oversold; %K line rises above 80 – asset is overbought %K line is higher than %D line – asset is in uptrend; Stochastic line is lower than %D line – downtrend MACD histogram positioned above and below the 0 level MACD histogram positioned above 0 is a bullish trend MACD histogram positioned below 0 is a bearish trend RULES FOR THE STRATEGY The strategy consists of two logical steps: First we determine trend direction with the help of MACD Indicator. Second we determine the entry point within MACD trend direction
    [Show full text]
  • Using the Stochastic Oscillator
    TECHNICAL ANALYSIS ID’ING WHEN TO BUY AND SELL USING THE STOCHASTIC OSCILLATOR By Wayne A. Thorp Stochastics work best There is no such thing as a universal indicator. Rather, different conditions with those securities dictate the use of different indicators. Oscillators, which are indicators that move between zero and 100, are that are currently useful in identifying conditions where a security may be overextended— trading within a overbought or oversold. In the May issue of the AAII Journal, we took a particular range and look at one popular oscillator, Wilder’s relative strength index. This article may prove useful in focuses on another popular indicator, the stochastic oscillator. identifying buying THE CALCULATION and selling points. But they can return The word stochastic is defined in general as a process involving a random false signals, variable. The stochastic oscillator was first introduced by George Lane in the especially during 1970s. This indicator consists of two lines—the %K and %D lines—and compares the most recent closing price of a security to the price range in periods when stocks which it traded over a specified time period. are in a strong The following formula shows you how to calculate the latest point on the uptrend or %K line: downtrend. %K = [(Close – Lo) ÷ (Hi – Lo)] × 100 Where: Close = Last closing price Hi = Highest intraday price over the designated period Lo = Lowest intraday price over the designated period Therefore, if you were calculating a five-day %K line, the first point would be calculated using the highest price over the last five trading days and the lowest price over the last five trading days as well as the closing price for day five (the last day of the five-day period).
    [Show full text]