Tag Archive | "Down Trend"

Master The Channel Projection

Tuesday, January 18, 2011

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Most traders know how to draw a channel but not many know you can use the information used to create the channel to find possible turning points in the market. First lets look at the traditional channel. You would first identify a trend and draw a trend line. Next you duplicate the exact angle of [...]

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Enormous Profits Small Risk

Tuesday, December 28, 2010

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This particular technique requires a little practice and it is something that is well worth looking out for. I call it roofing and flooring. It is best done using a large time scale like a weekly or monthly chart and then lowering the time scale for entry. It works like this. First bring up a [...]

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ADX (Average Directional Index)

Sunday, November 7, 2010

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History Average Directional Index (ADX) was developed by J. Welles Wilder Jr. and as its name implies attempts to measure the strength of the direction the security is moving in. ADX is measured in a scale from 0-100 with readings above 25 indicating that you are in a trend whilst readings below 25 indicate that [...]

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Stochastics

Wednesday, November 3, 2010

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History George Lane was the originator of the sochastics in the 1970′s. Lane observed that as prices increase in an up trend, closing prices tend to be closer to the upper end of bars and in a down trend closing prices tend to be nearer the lower end of bars. Lane developed stochastics to discern [...]

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