Keep Investing in Dope Stocks: Attention: TRADERS, Scalpers, Investors
Keep Investing in Dope Stocks: Attention: TRADERS, Scalpers, Investors
Keep Investing in Dope Stocks: Attention: TRADERS, Scalpers, Investors
SCALPERS,
INVESTORS
Keep Investing in
Dope Stocks
K.i.D.S. - a Trader gang reference
YTD DAILY
YEAR-TO-DATE
Interpretation of RSI
Wilder posited that when the price of stock rallies rapidly, it will be considered
overbought at some point. Similarly, if the price falls continuously, the stock is
oversold
Technical Analysis
In both cases, Wilder theorized that a reversal is imminent. Therefore, the RSI
indicates an upcoming reversal of trend, whether it is downwards or upwards. Traders
should also watch the volume indicator to understand if interest in the scrip is
waning, and whether other traders are starting to book profits, or accumulate more
shares.
The RSI gives three types of trading signals divergence, charting signals and
the level of the RSI, in order of importance.
1. Bullish divergences: which give buy signals, occur when the price falls to a new
low, but the RSI makes a shallower bottom in comparison to the previous. It is
advisable as soon as the RSI turns upwards from its second trough. A bearish
divergence is a sell signal. It occurs when the price of a share rallies to a new peak,
but makes a lower top than the previous rally.
2. When the RSI breaks its downtrend line, a trader should place an order to
buy above the price trend line. When it overcomes a steady uptrend line, a
trader should place an order to sell short below the price trend line.
3. When the RSI crosses the oversold line of 30, one can interpret it as a buy
signal. When the oscillator crosses the overbought line of 70, it is a good
time to sell.
What is MACD?
MACD is Technical Analysis indicator that was developed by Gerald Appel in 1970 to spot
changes in stock movement and the underlying trend. It is a collection of three signals that are
calculated from the historical prices of the stock namely the MACD line, the Signal Line and
the Divergence.
It is broadly a momentum indicator that shows the relationship between two moving averages
of price i.e MACD is calculated taking into account the difference between a short term
Exponential Moving Average (12 days) of a stock and longer term Exponential Moving Average
(26 days) of the stock against the Signal Line which shows the 9 day Exponential Moving
Average.
How is MACD calculated?
An MACD chart consists of a two coloured lines the MACD line and the MACD Signal line. The
MACD line is calculated by by following this process 1. Calculate a 12 day EMA of closing prices
2. Calculate a 26 day EMA of closing prices
3. Subtract the longer EMA in (2) from the shorter EMA in (1)
The the MACD Signal line is calculated by taking the 9 day exponential moving average of the
stock.
Understand the
system before
investing into
anything. Start with
dinosaurs and
perhaps include
Trilobites. Now, drill
down to Gigabytes &
Terabytes.
We're the aliens...
SOCIAL
MEDIA
2005s
E-COMMERCE
"Top-Down Approach
of the world from a
profitable trader"
-Sumant C.
2000s
@myTraderGang
INTERNET
SEARCH
ENGINES
STATISTICS
BINARY DATA
ARITHMETIC
CAVEMAN
EARTH FORMED
1990s
In response to
Maslow's Motivational
theory, Trader Gang
was established.
1970s
B.C.
When the MACD line i.e Red Line falls below the Signal Line, it indicates a bearish signal
and is taken as an indication to Sell.
When the MACD line goes above the Signal line, it indicates a bullish signal and is an
indicator to Buy. The crossovers between the lines point to a divergence that would
eventually converge helping the trader predict the direction of the price movement.
Wall
St.
Tips
This is how I applied my theory: When the boxes of a stock in which I was interested stood
like a pyramid, on top of each other, and my stock was in the highest box, I started to
watch it. It could bounce between the top and bottom of the box and I was perfectly
satisfied. Once I had decided on the dimensions of the box, the stock could do what ever it
liked but only within that frame. In fact if it did not bounce up and down I was
worried, no bouncing, no movement meant it was not a lively stock.
DARVAS
BOX
TRADER
GANG SIGNS
TRADER GANG
TRADER
GANG