Charting signals to provide buy and sell signals

[alexchartfilter]

Using charting signals to provide buy and sell signals - Bollinger Bands, trendlines, Moving Averages, Stochastics, convergences & divergences.

In this issue, we will cover the quick basics of the charting signals provided by the more popular technical indicators. If you are a subscriber to StockTools you will have noticed that the charting now shows buy/sell (and sometimes warning) signals on the charts. The signals for the most part coincide with the technical signals you can screen with and set alerts on. (Click here for full list)

While the signals for screening and alerts have fixed parameter settings, the signals produced by the charting can use any parameter setting of the users choice. (*If there are too many signals, then choose a shorter timeframe.)

In our last issue, we applied the stochastic indicator on the DJIA. The theory is that the odds of finding a good trending stock will be increased when the index is uptrending. Since there are 30 components, and that would make an extremely long newsletter, we will highlight 3 of the 30 DJIA components as our charting examples.

These are three random samples from the DJIA component list, and not indicative of any "choice." The analysis featured from each stock only applies 1 indicator and does not cover any fundamental reasonings. Further analysis is required to make any opinion, however the concepts shown in applying these indicators are important tools in creating a valid timing system. [More...]