Apr

28

(From my stockbroker)

William,

Nobody has a perfect answer to when to buy and when to sell. If they say they have the answer, just wait for the weather to change.

Just to share info with you… I rely upon a study call "Williams Percent R" listed on tech analysis of Google Finance as "%R" (use 18 periods or days).

Study this a bit. Larry Williams has been very successful with this. %R is a take-off of Dr. George Lane's stochastics. Williams took the stochastics info and put it on one chart so you can see up and down–read on down the page.

The five people shown below are the developers of the most profitable tools. Welles Wilder is in New Zealand.

Notice… below .. %R is the bottom chart … you would prefer to buy when the %R is below 90 and sell when the %R is above 10.

It is not perfect so you should compare it to the price envelop…(red line on price is 3% above and 3% below the 18 day moving average).

Note the main chart is a daily chart. The chart in the background is a weekly chart of the same security. Set this up on two screens. Each of the people shown above often use a tool call "divergence". If the weekly chart has a 30 %R and the daily has a 90 %R, then the daily has diverted off of the path to the low side and may soon revert to the mean, or go back to the range of the weekly, near 30 or 40. This may give you enough to trade for a profit.


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