Tag Archives: Investment Strategies

Profit Trading

Kicker Signals    The Kicker Signal is one of the most powerful Candlestick signals. This is due to the signal having a gap built into it. In some cases the gap is very obvious. In other cases the gap is not always recognized by investors.   As described in Mr. Bigalow’s book “Profitable Candlestick Trading”, the Kicker Signal dramatically illustrates investor sentiment has changed.

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Selling Gaps

Now turn the tables over.  The same enthusiasm demonstrated by a gap to the upside is  just as pertinent for sellers on the downside. A gap down illustrates the desire for investors to get out of a stock very quickly.  Identifying clear Candlestick “sell” signals prepares the investor for potential reversals. The Doji at the top, Dark Clouds, Bearish Engulfing patterns are obvious signals

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Gaps At The Top Of A Trend

A gap that occurs well after the beginning of a trend reversal, where stochastic are still in the midrange of an uptrend, has different implications. How do you distinguish whether a gap is a potential measuring gap? Evaluate where the stochastic are in the trend. If they are still relatively low, the trend has more room to create another gap before getting to the

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Gaps at the Bottom

Figure 5 – Standard Pacific Corp.  Many investors are afraid to buy after a gap up. The rationale being that they don’t like paying up for a stock that may have already moved 3%, 5%, 10% already that day. Witnessing a Candlestick “buy” signal prior to the gap up provides a basis for aggressively buying the stock. If it is at the bottom of

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RSI – Relative Strength Indicator

  RSI – Relative Strength Indicator Developed by J. Welles Wilder and introduced in his book, New Concepts in Technical Trading Systems, the Relative Strength Index (RSI) is an extremely popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It

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Standard Deviations

In this example Microsoft is charted using 20 day Bollinger bands at 2 standard deviations. Contracting bands warn that the market is about to trend: the bands first converge into a narrow neck, followed by a sharp price movement. The first breakout is often a false move, preceding a strong trend in the opposite direction. A contracting range [C] is evident in June 1998:

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Three Bands Encompassing

Again, this indicator consists of three bands encompassing a security’s price action. Defaults are:   1. A simple moving average in the middle, usually 20 days for intermediate investing. 2. An upper band ( 20 day SMA plus 2 standard deviations) 3. A lower band (20 day SMA minus 2 standard deviations)   Standard deviation is a statistical term that provides a good indication of

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Investment Strategies

Basic Investment Strategies A good planning and strategy is always important to accomplish any kind of work perfectly. This is true in the case of stock investments too. You should follow somebasic investment strategies in order to manage your funds accordingly. So let us have a look at the different investment strategies in the stock market. Factors Of Investment Strategies Basically there are four main factors

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tips investors

Tips investors MUMBAI: While stock markets have tanked over the past month, the growth trajectory of corporate India seems to be on track. Leading companies in sectors like engineering, automobiles, petroleum and software are expected to bring out numbers that display strong profitability in the coming year. The earnings for the 30 stocks which comprise the sensex are expected to increase by 16-18per cent

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investors lap

  MUMBAI: Overseas investors have a bigger appetite for equity offerings by Indian companies than local investors. Between April and August this year, the amount raised by India Inc through overseas issues, mainly global depository receipts (GDRs), is almost thrice the amount it raised during the same period last year. According to data available with Prime Database, in FY07 (April-August) so far, corporates have

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