TigerSoft New Service
3/8/2010 RULES FOR TRADING TIGER WEEKLY CHARTS Profiting from Weekly TigerSoft Charts Using 3 Key Moving Averages and The TigerSoft Accumulation Index. 13-week moving average - 30-week moving average - 52-week moving average TigerSoft Accumulation Index - originated and developed by William Schmidt in 1981. (C) 2010 William Schmidt, Ph.D. All Rights Strictly Reserved. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Make Money. Use TigerSoft To Track Key Insider Buying and Selling in All Your Stocks www.tigersoft.com PO Box 9491 - San Diego, CA 92169 - 858-273-5900 - william_schmidt @hotmail.com |
A Guide To TigerSoft Weekly Charts (C) 2010 Wm. Schmidt. Ph.D. and www.tigersoft.com Classic TigerSoft Weekly Chart shows 5 Starting Rules: 1)Head and shoulders top, 2)Buy B12s based on AI bulges. See Study of Buy B12s here with a 100 Examples. Study the most powerful Buy B12s 3)Sell failed rally at flat 52 wk ma with AI<0 4) Broken support becomes resistance. AND The Blue 52-week ma shows longer-term trend when rising is support When it is falling it acts as resistance.. ============================================================================= More information will be added over time to this. Please come back again and visit our main website - www.tigersoft.com To place newer weekly TigerSoft chart on your screen use these commands: Peercomm + Peerless-2008-2010 + TigerSoft (version-3/3/2010) + Weekly Stocks These charts are based on downloaded weekly (WeekdatA.exe and WeekdatB.exe from Tiger Data page) for SP-500 and QQQQ stocks. More weekly stocks' data will soon be added. The price for our weekly and the 6000 stocks' daily data is $150 for a year, On left side (of TigerSoft's Form61) pick a stock and click button "Graph Selected Stock" A weekly chart of the last 5 years appears. Note the red 13 week (65-dma), the bold red 30-wk ma and the bold blue 52-week ma. On the right side (of Form61) click Graph All Stock to see all the stocks, one after another, where you hit the down-arrow (2) key to continue or the up-arrow (8) key to go back up a stock. Click the button "Run Weekly Flag Program" and the computer will generate sub-lists of stocks making 5-year highs or lows, stocks surpassing or falling below their 52-week ma and all stock within a few percent of the mvg. avg. When the Flag Program click the appropriate button on the right to see the stocks fitting these descriptions. Interpretation: Below are rules for reaching bearish conclusions. The reverse of them can be used to reach bullish conclusions. We can try to spell these, but the best way to understand what works is to apply these concepts and others you discover yourself to lots and lots of sample weekly charts from the past. Bearish Warnings on Weekly Charts Weekly charts let you see well-tested trendlines of support and resistance that go back more than a year. These would not be seen on a daily chart that only goes back a year. One would not even know they have been violated, or how significant that was. Head and Shoulder Top formations are often much more easily seen with weekly data. The right shoulder of the price pattern is nearly always accompanied by much weaker (even red) levels of the Tiger Accumulation Index than on the head and on the left shoulder. Rally Failures A rally to a declining blue 52-week ma when the Accumulation Index is negative is distinctly bearish if it has been rising, the stock is over-extended to the upside, has a coincident trendline or a bearish top formation, especially a head and shoulders pattern. In a rising market, the 13-wk ma acts as support. But if that is broken below on a weekly closing basis, the 30-wk ma is likely to be tested. And if that mvg.avg. is broken on a weekly closing basis the rising 52-wk ma will probably next be tested. With some exceptions, noted below, as long as a moving average is rising steeply it will probably hold. The turning down of the moving average means this support has clearly given way. Since there can be too much additional decline if we wait to sell only when the moving average turns down, use the other technical elements below to decide whether to sell on a simple violation. Use these considerations: (1) the rate of change of the moving average. The higher and more positive the rate of change of the ma is, the more likely a test of the ma will produce a revound in prices and that ma will probably act as support. If the bold red 30-week ma starts to flatten as it is being tested, the odds increase that it will be violated. Example: Compare AAPL in October 2008 (bearish) with AAPL in January 2009 (bullish.) (2) how over-extended prices are and how far prices might fall if there is a decline to the next support level. A stock that has not violated its bold red 30-wk ma for a year and a half is more likely to show additional weakness. A stock that is up 5x or 10x in two years becomes very vulnerable to profit taking when the 30wk ma is violated. (3) whether there is also a well-tested price uptrendline that has just been violated. (4) whether more than one of these key moving averges coincide. Two of more key rising moving averages are likely to act as successful support than one, though a closing violation will likely produce a bigger and sharper decline. Compare AAPL in April 2006 (bullish) with July 2008 (bearish when 30-wk and 52-wk were both violated on the same week. (4) whether a clear top pattern has developed, such as head and shoulders pattern, which adds to the bearishness. (5) what the level of the Accumulation Index is. Positive level of the Accumulation index suggest there is still support. (6) whether there is other indications of price support, namely a recent low at this level that also served as support and pruduced a good rally. (7) whether the last new high was confirmed by Accumulation or not. A false new high or breakout on negative Accumulation is more likely to produce a deeper decline. Bullish Flag/Flat Topped Breakouts Little "box" patterns are easier to spot on a weekly chart. Breakouts from these when the Accumulation Index is above +.20 usually bring a further rally. Moves into 5-years highs are usually very bullish, provided the Accumulation Index is postive. |