MMStockPlay's Money Makers

[Bob-C]

Hi Wisdom, KLDO, DNDT, GDGI, etc. Heikin-Ashi charts...

Hi Wisdom, here is the AAPL Heikin-Ashi daily chart:





Here is the [url=http://www.investopedia.com/articles/technical/04/092204.asp#axzz27dGo9I8g]Heikin-Ashi article from Investopedia.com.[/url]

The Heikin-Ashi technique--"average bar" in Japanese--is one of many techniques used in conjunction with candlestick charts to improve the isolation of trends and to predict future prices."

There are five primary signals that identify trends and buying opportunities:


.Hollow candles with no lower "shadows" indicate a strong uptrend: let your profits ride!

.Hollow candles signify an uptrend: you might want to add to your long position, and exit short positions.

.One candle with a small body surrounded by upper and lower shadows indicates a trend change: risk-loving traders might buy or sell here, while others will wait for confirmation before going short or long.



.Filled candles indicate a downtrend: you might want to add to your short position, and exit long positions.



.Filled candles with no higher shadows identify a strong downtrend: stay short until there's a change in trend.

These signals show that locating trends or opportunities becomes a lot easier with this system. The trends are not interrupted by false signals as often, and are thus more easily spotted. Furthermore, opportunities to buy during times of consolidation are also apparent." Investopedia.com



Conclusion
The Heikin-Ashi technique is extremely useful for making candlestick charts more readable--trends can be located more easily, and buying opportunities can be spotted at a glance. The charts are constructed in the same manner as a normal candlestick chart, with the exception of the modified bar formulas. When properly used, this technique can help you spot trends and trend changes from which you can profit!" Investopedia.com

Here is the SPX Heikin-Ashi daily chart:





Here is the QQQ Heikin-Ashi daily chart:




Here is the NYA Heikin-Ashi daily chart:



Here is the INDU Heikin-Ashi daily chart:



Here is the RUT Heikin-Ashi daily chart:




Here is the KLDO Heikin-Ashi daily chart:



Here is the DNDT Heikin-Ashi daily chart:



Here is the EDIG Heikin-Ashi daily chart:



Here is the STEM Heikin-Ashi daily chart:




Here is the GDGI Heikin-Ashi daily chart:



Best, :)

Bob