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Here I would like to demostrate what black color bars signals a top and sell signal.

 

Let's take a look at JPM, short term bar is in black means a possible short term top, trend level is increasing on par with the price which is a good sign for a higher price.  BUT taking profit is very important and it is up to your greed level.  All of my comments are based on short term trading.  For longer term, we need to look at the weekly chart.  Based on past experience, perfect short term trades max holding period is 2 weeks and don't expect the price go up forever.

 

 

 

 

 

 

 

Here we look at another company F.  Most bars including ST/MT/LT are black, this means the stock is under big bull, I would not touch it now and move on to the next one.  Just need to wait for a low risk setup, that's it.  If you take a look at GOOG, the chart is similar.  Based on "position" theory, you don't want to be in a crowded room and there are lots of other empty rooms waiting for you to explore.

 

 

 

 

 

 

 

How do you deal with perfect trading signals?  The answer is easy money, this chart shows 2 perfect short term trades:

1. Buy on Dec 15, after price and trend level flatting and saw a little green on ST bar.  Sell on Dec 22 or 23.

2. Buy on Dec 31 or Jan 4 for green bars appeard couple with price flattened, I would probably take profit today Jan 7 or price spike tomorrow.  Hey profit is profit.

 

For the bank sector, I expect this is a multi-week rally, short term trading would trade more often but middle/long term will hold for couple week.