Number 1
Welcome to
the premier issue of the ChartFilter.com monthly newsletter.
This newsletter is designed to provide you with tools
you can use every day to make profitable investment
decisions.
In each issue
we'll focus on the use of a different technical indicator
in real-life markets. In this issue we focus on the
use of Moving Averages & Trendlines.
Please note that we
have used historical data. These examples are for
educational purposes only.
CURRENT
TRENDS - Learning from real-life markets.
This month
we'll be learning how to use a couple of the simplest,
yet most important and powerful tools available to
the average investor... Trendlines and Moving Averages.
We'll take a look at the NASDAQ Composite Index to
reveal what the long-term Moving Averages are telling
us about the potential frailty of the current markets.
If the NASDAQ composite once again breaks down through
its 200 day MA, we could be entering a bear market.
 More
info
TIPS
& TECHNIQUES - Using Trendlines
An important
concept in the use of trendlines is that of support
and resistance. A continued trend is based on
underlying support for prices in the market, for whatever
reason. Similarly, there's resistance to higher prices
built into the market.
The trendline
is one way to capture and illustrate these zones of
support and resistance. As long as the market stays
within these zones of support and resistance, as shown
by a trendline, the trend is sustained. Any penetration
through a trendline warns of a possible change in
trend. We may not know the reason behind such a change,
but we do know that for some reason the support or
resistance for a market is changing.
PROFIT
POTENTIAL - Bombardier Inc
Bombardier
has been in a strong uptrend for several months and
has offered perfect opportunities for making a profit
based on the signals offered by Moving Averages and
Trendlines. Using a fairly straightforward system
of buying when the 20-day MA crossed the 50-day MA
and selling when the mid-term trendline was broken
you could have made 56% return on this one stock alone
in the past ten months.
More
info
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