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swing_trader

02/15/14 10:37 AM

#65196 RE: FIERCE #65193

Here is a couple charts. The first is a chart explaining the indicators I use. The second chart is what I see happening here.
And I'm sorry but I never use Bollinger bands or any other indicators other than what I have listed. I like my charts simple and clean. A set of moving averages, volume bar and stochastics are all I ever needed.

On the second chart I see a lot of strength here. Unlike the first run up, the 20 period EMA came up and tapped the 200 period. The next day we had a strong green candle wic between the 50 and 200. This is a very strong signal. We have a strong decline in volume to come down and close the gap. We have a descending stochastic heading back to the oversold level.

All these indicators coupled together makes it a good setup. I hear a lot of harping about the volume being dried up but that's what I want to see with a stock that is consolidating. That probably didn't answer your question but its the best I could do with what I use and how I trade what I see



dragon52

02/15/14 11:33 AM

#65201 RE: FIERCE #65193

Quiver...

If you look at your chart... upper left hand legend where it says "BB" which means Bollinger Bands... note (20,2,0) 20 is the 20 day moving average.

Now if you look at a 25MA line, it showed that it supported the pricing as it opened just above, dropped to the 25MA line and bounced back up to close higher than the open, which caused this to close green. So not necessarily having anything to do with anything, the 20MA line is just a half way area for the Bollinger Band. Having said that, it shows that it could move toward the upper band since it is over-sold a tad.

check out the 25MA line and its support.