SPECULATION STOCKS

[kiy]

Best Trader's Technical Indicators...CCI 20 SIGNALS will signal from overbought/oversold..DAILY bias is down when CCI falls below the +100 CCI signal line...best trades are in the direction of the daily bias[/color][color=red][/color]...
...so all you need is CCI 20 a slow stochastics 10,2 an On Valance Volume (OBV)and a Bollinger Band 20,2 to box price inside the daily chart...after you read the section I have on SENTIMENT you would want at least 2 "TRADER's" senitment indicators...




The above is the first 1/2 of the answer...the second half is intraday charts; when you get daily and 60minute both in overbought its time to be looking short...get both Daily and 60 minute CCI 20 in oversold...there's a good reason to start looking on the buy side...
60 minute


Next...This is on the S&P Intro page and the Speculation Intro page. You should understand this...and then test it...

There is a method of reading the crowd... "Method to the Madness of Crowds" and you can find it and define it on the charts...Technical Charting takes away some of the fear/doubt in trading... and then all you need is patience while waiting for the chart to tell you when the momentum/sentiment turns...Kiy...

Tell me do technical indicators serve a purpose or are you a price pattern person...a fundamentalist...or a seat of your pants trader...?

MOMENTUM...looking at the price chart below;... the technical indicators above the price bars are momentum indicators...the goal is to buy low/sell high...oversold/overbought "relative" to what = CCI 20...%B...Stochastics ...these indicators are all about "PRICE" MOMENTUM. Technical indicators "indicate"... "point direction" they are best read when the indicator is at one of it's "signal" lines and when price is at certain price levels such as Support/Resistance lines.

Stochastics is an important indicator, learn all you can about this one. Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. According to an interview with Lane, the Stochastic Oscillator “doesn't follow price, it doesn't follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price.” As such, bullish and bearish divergences in the Stochastic Oscillator can be used to foreshadow reversals. This was the first and most important, signal that Lane identified. Lane also used this oscillator to identify bull and bear set-ups to anticipate a future reversal. Because the Stochastic Oscillator is range bound, is also useful for identifying overbought and oversold levels. (stockcharts.com

The "key" to trading anything is the recognition that you can control risk. The key to trading is to manage risk. You must set parameters for a trade and stick with them. Taking a loss should be routine. That is how you manage risk.
NOTE: If you have the momentum indicators on your side the risk is less...If you think you can trade against these indicators on the Daily chart your trading account is going to shrink...General Expert...SeekingAlpha Blog

Regression to the Mean/Mean Reversion is the most powerful law in financial physics This is the Bollinger Bands 20,2... 20day simple moving average is the centerline of the Bands...
Mean reversions out of extremes are the most powerful and profitable forces in all the financial markets. Riding one has enormous benefits for your wealth. Financial-market prices and sentiment are like a giant pendulum. The farther they are pulled to one extreme (overbought/oversold) by excessive greed or fear, the farther they necessarily swing to the opposite extreme in the subsequent mean reversion. Like pendulums, these reversions don’t magically stop right in the middle at normal again. Their kinetic momentum carries them through to the opposite ends of their arcs. But overshot extremes don’t last for long, as the universal greed necessary to fuel them quickly burns itself out.


Next...Note the last 2 graphs on the above chart,... below the On Balanced Volume indicator (OBV)... Note how the price bars change color when price closes above or below the 10 day average. Maybe a green price bar is telling you to buy because a potential trend may form; maybe a green price bar is saying don't sell...maybe = its saying both buy-don't sell ...
Maybe a red price bar says sell or maybe its saying don't buy... maybe both...
Maybe a blue price bar is neutral about Direction/Trend; maybe its saying to listen to the last green or red price bar on the price chart...?...

... maybe now you are an expert... Test it... You can look back at a chart from 5years ago or look at this chart 5years from now...I will not have to change any parameters on this chart and all the definitions above will remain the same...
(please note: these colored price bars are part of the Elder's Impulse System which is based on two indicators, a 13-day exponential moving average and the MACD-Histogram. The moving average identifies the trend, while the MACD-Histogram measures momentum. As a result, the Impulse System combines trend following and momentum to identify tradeable impulses. This unique indicator combination is color coded into the price bars for easy reference. I (Kiy) have added some speed to it with the use of the 10day moving average (also the 10day average relates to the Grail averages and it just so happens the colored price bars work very good with the 10day average also.) And (Kiy) does not use MACD for momentum, I like Stochastics....I leave it to you to use the link above to see how Dr. Elder interprets the colored price bars.) (...Any way you look at the colored price bars; they are very helpful...better than Candlesticks ; you can test it and learn.) http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:elder_impulse_system

"Trader's Sentiment Indicators"
SENTIMENT On the above chart...look at the indicators starting with VOLUME... I use these indicators as SENTIMENT INDICATORS..."trader's sentiment indicators" ...Volume=volume speaks volumes...Accumulation/Distribution... Money Flow Index (MFI) is also both a momentum and sentiment indicator...On Balanced Volume (OBV)...(and on an intraday chart VWAP=Volume Weighted Average Price which I consider both a MOMETUM and SENTIMENT indicator ...from Wikipedia The VWAP can be used similar to moving averages, where prices above the VWAP reflect a bullish sentiment and prices below the VWAP reflect a bearish sentiment. Traders may initiate short positions as a stock price moves below VWAP for a given time period or initiate long position as the price moves above VWAP. Institutional buyers and algorithms will often use VWAP to plan entries and initiate larger positions without disturbing the stock price.)

The crowd is always taking action...The sentiment indicators are telling you what the "crowd" is doing/thinking... These Sentiment Indicators "indicate"... "point direction" (it really is ALLLL about UP/Sideways/DOWN...) Sentiment indicators are best read when price is at certain price levels like Support/Resistance Lines or at certain Moving Average Lines like the 10day, 20day and 50day moving average. Markets are not about beliefs/opinions, but about sentiment. And, If you can measure sentiment... then you are in a position to make your investment account grow without the need for excuses. (...this really is all you need to know about the Markets... and it should be carved in stone...kiy) (https://seekingalpha.com/article/1719142-how-should-you-trade-silver-with-all-the-manipulation) (note Kiy; does not advocate Elliot Wave)
The stickie note "Sectors ...Daily" on the Speculation Board has a long list of charts based on the technical indicators noted above: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141247347

Investors focus on a wide range of measures to gauge the current state of the stock market. Financial analysts generate elaborate financial models. Technical analysts interpret charts and complex indicators. Quant investors design intricate algorithms.
Each of these approaches are legitimate in its own right. But each ignores the elephant in the room: market sentiment.
Maybe that's because market sentiment is hard to quantify, making it the red-headed stepchild of market analysis.
But in the real world, market sentiment often matters more than a market's fundamentals. https://www.investmentu.com/article/detail/58940/end-of-bull-market-does-not-feel-like-this?src=email#.WuAAJhvRWUs
Bernard Baruch, an exceptionally successful American financier and stock market speculator who lived from 1870-1965, identified the following long ago:

All economic movements, by their very nature, are motivated by crowd psychology. Without due recognition of crowd-thinking ... our theories of economics leave much to be desired. ... It has always seemed to me that the periodic madness which afflicts mankind must reflect some deeply rooted trait in human nature - a trait akin to the force that motivates the migration of birds or the rush of lemmings to the sea ... It is a force wholly impalpable ... yet, knowledge of it is necessary to right judgments on passing events.

During his tenure as chairman of the Federal Reserve, Alan Greenspan testified many times before various committees of Congress. In front of the Joint Economic Committee, Greenspan noted that markets are driven by "human psychology" and "waves of optimism and pessimism." Ultimately, as Greenspan correctly recognized, it is social mood and sentiment that moves market.
In my humble opinion, I believe that, as more and more study is conducted into the social aspect of economics, especially into market sentiment, we will ultimately abandon the use of "fundamental analysis" as a main research tool in identifying changes to market direction. In fact, many noteworthy scholars and economists have begun to recognize that using fundamental analysis to determine market turning points is akin to driving a car blindfolded, while facing the rear window.
https://seekingalpha.com/article/4020394-sentiment-speaks-sentiment-trumps-fundamentals-news

Bollinger Bands...Using Bollinger Bands by John Bollinger (...there is a PDF file over on StockCharts.com...)
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:bollinger_bands
Stocks & Commodities Magazine Articles
Bollinger Bands by Amy Wu
Dec 2001 - Stocks & Commodities V. 20:1 (78-79)
Using Bollinger Bands by John Bollinger
Jan 1992 - Stocks & Commodities V. 10:2 (47-51)
Trading bands are one of the most powerful concepts available to the technically based investor, but they do not, as is commonly believed, give absolute buy and sell signals based on price touching the
bands. What they do is answer the perennial question of whether prices are high or low on a relative basis. Armed with this information, an intelligent investor can make buy and sell decisions by using indicators to confirm price action.
The earliest reference to trading bands I have come across
in technical literature is in The Profit Magic of Stock Transaction Timing; author J.M. Hurst's approach involved the drawing of smoothed envelopes around price to aid in cycle identification.
In the late 1970s, while trading warrants and options and in the early 1980s, when index option trading started, I focused on volatility as the key variable. To volatility, then, I turned again to create my own
approach to trading bands. I tested any number of volatility measures before selecting standard deviation as the method by which to set band width. I became especially interested in standard deviation because of
its sensitivity to extreme deviations. As a result, Bollinger Bands are extremely quick to react to large moves in the market. Bollinger Bands are plotted two standard deviations above and below a simple moving average. The data used to calculate the standard deviation are the same data as those used for the simple moving average. In
essence, you are using moving standard deviations to plot bands around a moving average. The time frame for the calculations is such that it is descriptive of the intermediate term trend.
"Asking the market what is happening is always a better approach than telling the market what to do".