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Saturday, August 28, 2010

Description of a Detailed Chart Study


The Chart Study displayed is put together under many different protocol requirements and represents a study that incorporates sub-studies.

The overlays are:

Bollinger Bands at default with a dotted 20 day average
-20 day SMA used for closing price over the average buy signals.
-50 day SMA used for bullish trend indications.
-%B overlay for leading topping indications (confirmed with lower supporting indicators... volatility) this is the Black overlay that measures the extent of the Bollinger volatility.

12,26,9 is used to identify trends over the signal line, and to present bullish divergence signals for a down trending price action.

12,26,9 MACD is specifically placed above the CMF 20 so that momentum can be estimated to the MACD moves.

Sto RSI 14 is charting the below RSI 14
RSI 14 is a top and bottom indicator.


Slow stock 100,50 at these settings is a leading trend reversal indication


Full Sto 25,5,5 is a modified setting and is placed above the Aroon 25 to be a complimentary visual signal for the Aroon indicator.

An oversold Sto 25,5,5 and a peaking brown Aroon always squeeze before a reversal especially in a hot broad market. The squeeze can cover a long period in a down trend, when they move in opposite directions out of a squeeze expanding, you should be very alert for bounces, or breakouts of a ranging stock establishing.


Slow Stock 39 is a stand alone stochastic modified to give oversold and overbought signals in a ranging market.


The three settings of Stock RSI are a sub study of core strength showing quick to very long moves. Strong up trends will show the Stock RSI 140 above 80, dips while above 80 have a better than average chance of bouncing off lower bollinger touches.


Slow STO 200,100 and MACD modified 48,72,24 cross overs in a strong market can be quick on news or lead slowly on supply diminishing, and are trend reversal indications for bigger moves.


Volume is set for 250 day average so that bars crossing the average are strong volume moves.

Dave GLTA

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