AI
Wednesday, September 20, 2006 2:03:31 AM
BIDU is a frisky player and volitile , yet you might have seen me shorting it before up here ...the reason is clear here on the daily chart , BIDU's a good example of what that link & last paragraph is trying to explain.
See the RSI at the top of this chart going into the OB area above 70 ? It often signals a top and trend reversal and for this time frame an exhaustion area where traders in the stock will consider selling and taking profs .
(and shorts shorting it there too)
BIDU pulled back to $83 today making for a 7~8pt gain had you caught and shorted BIDU @ that $91+ area up in the OB/RSI , which rarely lies . And its so easy for us to communicate about a stock during the day with a simple -->OB or OS remark.
* Very powerful indicator of when a stok has fallen too far , or has gotten too ahead of itself...see that touch into the blue above 70 reading . Not that difficult really , you can make money both ways too !
See the RSI at the top of this chart going into the OB area above 70 ? It often signals a top and trend reversal and for this time frame an exhaustion area where traders in the stock will consider selling and taking profs .
(and shorts shorting it there too)
BIDU pulled back to $83 today making for a 7~8pt gain had you caught and shorted BIDU @ that $91+ area up in the OB/RSI , which rarely lies . And its so easy for us to communicate about a stock during the day with a simple -->OB or OS remark.
* Very powerful indicator of when a stok has fallen too far , or has gotten too ahead of itself...see that touch into the blue above 70 reading . Not that difficult really , you can make money both ways too !
Know how to make God laugh?
Tell Her your plans ....
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
