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EXAMPLE
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Example: AAPL – APPLE COMPUTERS |
MA PINK
DMI RED
ADX BROWN
RSI BROWN
ROC BROWN
MACD BROWN
FSTOCH BROWN
SSTOCH RED
DC BROWN
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ANALYSIS: To analyze the color profile of AAPL it is first necessary to note the position of its trending indicators MA and DMI. A PINK MA and RED DMI show a negative trend position for the stock. A BROWN ADX however does not support any new weakness giving the transitional Bear position of the MA more weight. |
| All the oscillator systems (RSI,ROC,MACD) are BROWN adding to the NEUTRAL posture of the stock.
The turning point systems confirm a negative posture with the SSTOCH system in a RED position. A BROWN DC (Dynamic Channel) signals that the market is in the NEUTRAL part of its range.
RESULT: AAPL is in a negative trend however a PINK MA and a BROWN ADX have the stock on the sidelines in a corrective state. Look to trade the market from the short side taking profits on dips, as a weak sideways bias is expected. |
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| Example: SDLI – SDL Incorporated |
MA BLUE
DMI BLUE
ADX PURPLE
RSI RED
ROC BROWN
MACD BROWN
FSTOCH AQUA
SSTOCH BLUE
DC BLUE
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ANALYSIS: SDLI is in a strong Bull posture with both Trending systems (MA and DMI) in a BLUE position and the ADX Trending Ability system PURPLE supporting the positive trend and adding follow through potential. A RED RSI system signals that the current strength may be |
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| a little overdone, however the ROC and MACD systems do not confirm this and are in a BROWN NEUTRAL position. Both turning point systems are positive, however the weaker FSTOCH system is showing a possible corrective signal. The DC is positive supporting the Bull trend bias.
RESULT: Look to buy breaks in the stock. Trending indicators are firm with follow through potential. A sharp upside acceleration in the stock may provide a good profit taking opportunity as the overbought signal in the RSI will keep any new buying at a steady pace. |
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| Example: ATHM - At Home Corporation Series A |
MA ORANGE
DMI BLUE
ADX BROWN
RSI BROWN
ROC BROWN
MACD BROWN
FSTOCH BROWN
SSTOCH GREEN
DC BROWN |
ANALYSIS: The trending indicators of ATHM are in conflict. The MA system is ORANGE producing a sell signal while the DMI trend following system is in a positive BLUE position. The ADX trending ability system is BROWN confirming the non-directional signal. The oscillators will carry a greater weight under these circumstances however they are all BROWN, NEUTRAL, providing no insight to the corrective state of the stock.
Interestingly the high value SSTOCH system is GREEN providing a BUY signal and the DC system has the stock in the neutral part of its range.
ATHM is in a corrective state with the MA and DMI systems in conflict. The BUY signal in the SSTOCH system is an indication that the MA negative signal may be over and the market is ready to rally. A NEUTRAL ADX does not support much promise for any new rise.
RESULT: Keep your distance. The stock is in a corrective state and is expected to be choppy. A held advance above resistance and further gains will be expected as the SSTOCH signal must be respected. The BROWN ADX keeps any new signal limited.
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