Introduction on Stock Trend Chart Basis

"It is simple to complicate things but it is complex to make things simple" - Nameless Hero

The charts on this site are generated by a proprietary trend model invented by Raymond Tsang the developer of this site aka Nameless Hero.

I am trying to simplify it here so first I will walk you through a list of chart features and then I will explain how to apply them.

Here is a list of chart features:

A - The stock name with symbol enclosed by parenthesis.

B - The time in eastern region the chart was generated; in this example the chart below was generated after market close. 

Today we are seeing something that rarely happens: USD, bond and stock all doing down and only gold up.  What that tells is people are more likely to move money into hard assets (not real estate) but commodities.  Beside the safe heaven role of commodities, when the hyper-inflation comes there will be another boost to this asset class.  People were criticizing me not to treat bond as a safe heaven, yes it was but in the past, the new winner will be commodities especially in a currency crisis era.  Paper supply is unlimited where gold is limited.  Just my 2 cents.  

Inflation, deflation or stagflation, which one will unfold next and what we can do to protect our money?

If shorting bonds is one of the best trade of the year, the recent stock market drop opens an excellent opportunity for shorting bonds.  And because bonds are so called "Safe Heaven" which I doubt it.  "More debts get you out of the debt problem.", I can't stop my laughing and it is similar to telling me to avoid a car accident by stepping harder on gas paddle?

I was talking to a financial analyst recently and he think that YRCW is fundamentally strong and have the potential to come back.  As of this writing the shares is trading at .48 a share.  I assume the stock is fundamentally sounded and what it needs is a technical analysis to locate the low risk setup.  So I bring up my browser and point to our site www.stocktrendcharts.com.   Boom, YRCW is trading at a perfect low risk setup.

The trend model shows bottoming signal of quite a few of stocks and commodities are poised to a bounce such as SLV, USO, OIL, GOOG, BAC, C...etc.  You name it.  This would be a wave B play and the trade should be quick and profitable and required tight stops.  This is a low risk setup for short term bounce play, not a real rally.

When to take profit is opposite to when to stop loss.  Let's talk about the stop loss first; we set stop loss based on one or mixed of experience, feelings and technical signals.  In simple terms, say there is a boundary for stock price in a determined period (take a look at any chart and you can always spot the lowest and highest of course after it happened).  What we want is to buy at the lowest boundary and sell at the highest boundary.  If we know the boundaries then we know what the stop loss and what the selling price is.  It is quite hard for inexperience individuals to determine all this by their own.

I haven't written a blog for a quite a while but today I decided to write down what I am thinking and that may help you to decide on what and where to invest.

The case study serious has been using positive cases most of the time and I think it would be nice to have a nnegative case to complement the previous case studies.  In a bear market,thi sis useful to sense the risk ahead of a positive low risk setup.  Most of the time we wasi for consecutive whole red bars for more than 8-10 days and add to position when we see the first green bar and a minor positive price action.  In most cases when we trading in a bull market , it works beautifully many many times.