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Saturday, December 26, 2009

waves

Most of my screens are based on short term moving averages.

Think about it for a second.

When a stock falls to the 50/100/200, the 4-8-21 is also falling.

However, when the descend slows and the ascend starts, 4-8-21 converges.

Take a look at these charts. Do you see it?


The purple area is chop and hard to trade.


So what do you do when you find the waves?

You hold on, ride it out, and don't get wipe out.

Since no waves are alike, I have many waves screen you can find here.