AI
Wednesday, December 01, 2021 6:32:00 PM
Yeah, you will see a stock in bearish territory below the 8 day, with the 8 day serving as resistance, and bullish being above the 8 day with 8 day acting as support.
When a stock is in a very long downtrend, I watch the 8 day and 34 day to see the first sign of recovery, when the 8 day curls up and the 34 days is close, there is a good chance of a breakout, the longer downtrend the bigger potential move up, like dec 2020. If the 8 day curls up, but the 34 day is way above, you will usually get a small bounce (November 11th 8 day 1.16 34 day 1.50), but then it will fall back down until the 34 day catches up to the 8 day (which translates into the price has stopped declining and support has started building). Also, the 8x34 cross will let you know when to consider start selling, with big position that just started an uptrend after a big downtrend, I would just hold and not try to swing trade the small moves, because you will lose your position trying to time it, with the bull market pushing the price higher. I made that mistake the first big otc stock move I was in, swing trading the moves and lost my position to watch it keep moving up. In a uptrend, the 8x34 can cross and then cross back to bullish (bear trap) following the uptrend like CYDY in 2020, but in a downtrend it can switch and switch back negative (bull trap) like the current trend in 2021.
You can see the curl up on September 12th-13th, when I would buy if I were swing trading, but eventually the overall downtrend took back over, so in an overall downtrend, I would sell quicker on a sign of reversing, probably September 27th after 3 red days and the price dropping below the 8 day.
The current setup, below, it had a good signal November 14th, when is where I would have bought if I was swing trading, but the 8x34 didn't cross, it hit the 34 day on November 17th, and bounced down, (the 34 day was too far above the 8 day for this bounce to be successful) and now the 8 day is curling back down, a fake breakout or bull trap, where the downtrend continues after the 8 day fails to break the 34 or mildly breaks, both are close but turn back down. In a downtrend, if I am swing trading, I will sell at any sign of the that negative, either November 17th with it not breaking the 34 day and especially on the downcurl in the 8 day - November 23rd or 24th, so you can still make money on that difference (the curl up will always be at a lower share price than the curl down). I actually use the 8x34 on the minute chart while daytrading and use that a lot to determine if I should sell the ask or quickly sell the bid, hold the stock, etc, depending on how the 8x34 is looking tells my how aggressive the algos usually are trading, that chart and the vwap I use mostly.
When a stock is in a very long downtrend, I watch the 8 day and 34 day to see the first sign of recovery, when the 8 day curls up and the 34 days is close, there is a good chance of a breakout, the longer downtrend the bigger potential move up, like dec 2020. If the 8 day curls up, but the 34 day is way above, you will usually get a small bounce (November 11th 8 day 1.16 34 day 1.50), but then it will fall back down until the 34 day catches up to the 8 day (which translates into the price has stopped declining and support has started building). Also, the 8x34 cross will let you know when to consider start selling, with big position that just started an uptrend after a big downtrend, I would just hold and not try to swing trade the small moves, because you will lose your position trying to time it, with the bull market pushing the price higher. I made that mistake the first big otc stock move I was in, swing trading the moves and lost my position to watch it keep moving up. In a uptrend, the 8x34 can cross and then cross back to bullish (bear trap) following the uptrend like CYDY in 2020, but in a downtrend it can switch and switch back negative (bull trap) like the current trend in 2021.
You can see the curl up on September 12th-13th, when I would buy if I were swing trading, but eventually the overall downtrend took back over, so in an overall downtrend, I would sell quicker on a sign of reversing, probably September 27th after 3 red days and the price dropping below the 8 day.
The current setup, below, it had a good signal November 14th, when is where I would have bought if I was swing trading, but the 8x34 didn't cross, it hit the 34 day on November 17th, and bounced down, (the 34 day was too far above the 8 day for this bounce to be successful) and now the 8 day is curling back down, a fake breakout or bull trap, where the downtrend continues after the 8 day fails to break the 34 or mildly breaks, both are close but turn back down. In a downtrend, if I am swing trading, I will sell at any sign of the that negative, either November 17th with it not breaking the 34 day and especially on the downcurl in the 8 day - November 23rd or 24th, so you can still make money on that difference (the curl up will always be at a lower share price than the curl down). I actually use the 8x34 on the minute chart while daytrading and use that a lot to determine if I should sell the ask or quickly sell the bid, hold the stock, etc, depending on how the 8x34 is looking tells my how aggressive the algos usually are trading, that chart and the vwap I use mostly.
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