3. BREAK-OUT AND TARGET
๏ข
Break-out rules:
The 3%-5% move
๏ The volume move
๏
๏ข
Setting your target:
Measurement
๏ Sell before you hit your target
๏
9. THE DOUBLE TOPS & BOTTOMS
๏ข
Formation:
1.
2.
3.
Peak then 10 to 20% decline
ยฑ3% second peak
Decline
More people selling
๏ข Break-out
๏ข Target
๏ข
14. THE MACD INDICATOR
๏ข
The concept
Simple momentum indicator
๏ข
The formula:
MACD: (12-day EMA - 26-day EMA)
Signal Line: 9-day EMA of MACD
๏ข
Divergence
15.
16. THE CCI INDICATOR
๏ข
The concept
Extreme moves indicator
๏ข
The formula:
CCI = (TP - 20-period MA) / (.015 x Mean Deviation)
Typical Price (TP) = (High + Low + Close)/3
Constant = 0.015
๏ข
Divergence
17.
18. THE RSI INDICATOR
The concept
๏ข Between 30-70
๏ข The formula:
๏ข
RSI = 100 RS = Average Gain / Average Loss
๏ข
Divergence