Wednesday, February 27, 2013 9:55:34 AM
GDX...Momentum volume and momentum Stochastics
Price outside both 10,2 and 50,2 Bollinger...
1.Price has to get inside the band=then read your indicators
2. Inside 10,2 Band you are looking for "mean reversion= price centerline on 10,2 Band and read your indicators...for continuation or weakness...and above the 1 standard deviation band of the 50,2 Bollinger...
3. Volume speaks volumes...Look at the first time price is outside Bands=MOMENTUM volume...bounce and 10,2 centerline fails and down VOLUME spike= capitulation volume=this one defines support. Often with momentum down expect another drawback...confidence increases with price and moving averages on your side...Any position before price crosses centerline on the 10,2 Bollinger is early=hair trigger=don't second guess you stop. Next trade is the bounce high on any pull back...
4. Stochastics signals are to be listened to...stochastics best be agreeing with CCI...
Stochastics is MOMENTUM=centerline signals in the stochastics indicator =may be the most important signal....momentum failsat stochastics centerline and price is likely going to make a trip back to the lower Bollinger Band is expected...
6 month chart
Price outside both 10,2 and 50,2 Bollinger...
1.Price has to get inside the band=then read your indicators
2. Inside 10,2 Band you are looking for "mean reversion= price centerline on 10,2 Band and read your indicators...for continuation or weakness...and above the 1 standard deviation band of the 50,2 Bollinger...
3. Volume speaks volumes...Look at the first time price is outside Bands=MOMENTUM volume...bounce and 10,2 centerline fails and down VOLUME spike= capitulation volume=this one defines support. Often with momentum down expect another drawback...confidence increases with price and moving averages on your side...Any position before price crosses centerline on the 10,2 Bollinger is early=hair trigger=don't second guess you stop. Next trade is the bounce high on any pull back...
4. Stochastics signals are to be listened to...stochastics best be agreeing with CCI...
Stochastics is MOMENTUM=centerline signals in the stochastics indicator =may be the most important signal....momentum failsat stochastics centerline and price is likely going to make a trip back to the lower Bollinger Band is expected...
6 month chart
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