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What do you see in the NASD barchart below? 50 MA and 200 MA
WED, THU, and FRI Dec 19-21, 2007
Notice the WED, THU, and FRI closes when Bollinger Bands are present.
Chart below.
Notice Closes on Candlestick chart with Bollinger bands.
Chart below.
Notice candles at the 10 Ma and 20 MA on the chart below.
It appears as though candlestick charts will work for the markets.
PX will be reviewed in the charts below. The barchart has a cup and handle we will go through the technical analysis. The chart below is a barchart with a 50 MA and a 200 MA. Notice the cup and handle. A double bottom is also present on this chart ( underlines ).
50 MA > 200 MA = positive trend.
PX - weekly chart - verify trend and cup with handle formation.
40 weekly MA is approximately the same as a 200 daily MA
10 weekyl MA is approximately the same as a 50 day MA.
PX daily candlestick chart below. The Bollinger Bands are green, 20 day MA is green dotted line.
10 MA is red line. 50 MA is Blue line. Notice when Bollinger Bands become Horizontal and contract a move follows.
PX is upper part of BB. 10 MA > 20 MA > 50 MA.
Chart below - In the left circle you can see that the 50 MA acted as resistance. In the right circle the 50 MA acted as support. A resistance buy point line was drawn at the top of the chart.
PX could have been bought on this white candle as it broke resistance. If you missed it hopefully it will pull back to the 10 MA. Chart below.
APD is in the same industry as PX - it is also breaking out of a tight Bollinger Band pattern with the 10MA >20MA >50 MA.
The chart below is ARG. It is also in the same industry and appears to be breaking out.
Chart below.
PX looks like it popped !@### Oh well see if it will pull back to the 10 MA.
Notice the gap between the 10 MA and the candle.
Chart Below.
PX pulling back inside of the Bollinger Band now. Lower negative volume.
Chart Below.
Ahhhhh PX hit the 10 MA now wait for a positive day. I would wait for the next candles above the White candles body.
Chart below.
Buy on the white candle as it travel past the top of the previous white candle.
Notice the high positive volume.
How would you have done? Take a look below.
Cup and Handle with 10MA > 20 MA > 50 MA
APD could have been played as well. 10MA > 20MA > 50 MA.
Chart below.
Hope you can recognize the tight Bollinger Bands with the 10 MA > 20 MA > 50 MA in the future.
Remember the stock could turn take an explosive turn to the south. So monitor closely until you have a cushion.
The above examples are for illustrative purposes only.
Good Luck.
