Monday, September 03, 2007

ChartReading

Dear Readers, here is how to read the charts on this site. Pressure gages work the following way. When the Pressure SELL or BUY reach 70/100 of last few weeks range( usually 25 or higher ) then we have what is called a high BUY or SELL PRESSURE. If they reach over 30 then we have extremely high PRESSURE. Almost Never they both reach the high readings. Only one of them does. Meaning You will only have a buy or sell signal at one time. Once the buy/sell signal has arrived we need to, usually wait 1-4 days to actually sell and 1-2 days to actually buy. So, the pressure gages are anticipatory and give us time to prepare to use other tools(limits) to position ourselves. If the markets are fast and volatile we may not have the notice of few days and should be prepared to act faster as the signal arrives. Summation Graph works the following way. When at the top it is warning about downturn and when low it is warning about upturn. Usually Summation line will go to the upper range close/above the price line and turn down and must sell within 0-2 days. The inverse will happen when the summation line is at the bottom and turns up, there we need 0-1 day to go long. Anticipation time is less in fast/volatile markets like now. Please look at the chart and see how many times each of these rules worked alone or in conjunction with each other. Especially big moves. Yes, you will see it. I trust.
Good Trading

3 comments:

chronictown said...

Boris, Thanks for taking the time to help us!It looks to me that we may have a little more up before a sell signal. im looking forward to an interesting week ahead! I hope everyone had a graet weekend!Im still working on my discipline!

chronictown said...

PB ,can you explain " time slots". thanks,chris

NMMM.NU said...

Just an idea. Made a linklist on your blogger's sitebar and put the link to this there. Check how I did it on www.novini.net - I have 4-5 link lists that points cack to my blog there (I trust you can read cyrillic) :-)

Nick.