Here is an additional chart...be sure and check the other two a few pages back..Posts 398 & 400. They look very similar to this one, but are very different and they include definitions and illustrations for what I am talking about here.
On this chart we are using the WM% indicator. It is an indicator that measures overbought and oversold conditions. The whole idea is like this:
If you look at the scale anything over -20 is overbought and anything below -80 is oversold. -50 is of prime concern, because you should not buy a stock until it crosses up over -50 and you should sell when it goes below -50.
I have put three scales up there: one at 7 days, one at 14 days and one at 21 days.
The 7 day scale is for day traders....today! and that is it. By looking at that scale you can see that it is -58.82. If you were a day trader, you would have sold when it crossed -50.
The 14 day scale is for mid and the 21 is for a long - a three to four day hold.
Long means that you are going up with the stock. That you are not shorting it. Don't confuse it with time.
You can see where the numbers vary.
The reason that I used this indicator is to look at the 7 day. You can see that it crossed.
If you look at the RSI which is not on here, you will see that it coincides with the small dip at the very end of the RSI for the day.
Now, you shouldn't buy until this indicator comes back up above -50. This again confirms the "HOLD" position for MGLG tomorrow when the market opens. Now look at the parabolic sar (the little red dots I talked about in the first chart). They say buy, however, they are looking at a longer term than the 7 day WM%. If the stock started dumping, those little red dots would jump up on top of the candles telling you to sell. You should always use WM% in conjunction with the RSI and the ADX. Always use the MACD.
That was the whole purpose for this particular chart...to confirm a hold or buy position at market open tomorrow. Be sure and look at the other MGLG chart that I did. This one may just confuse you.
What this does, if you contrast it with Bass's info in the previous post right before this one is work with the other 20% of the buy equation that is not included in the short term projection in his post.
Do your own Due Diligence. I am just another flake in a snowstorm and am not responsible for your wins or monetary loses. I rode the short yellow bus to school.
Bill
SIRIUS XM SATELLITE RADIO FORUM
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Originally Posted by dread
