19 July 2021
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We sometime bench mark two stock price action or stock price with index. The following example, we benchmark BlackRock Credit Allocation Income Trust and US NASDAQ Composite stock index. Besides correlation we use other tools such as 1) Ichimoku Cloud, 2) Support Resistance (using box), 3) River (moving average), 4) GMMA and Woodies CCI, 5) Bollinger Bands and Moving Averages, and 6) MACD to analyze chart. See our simple reading of price action.
We occasionally, we apply wave theory onto chart. Such as well know Elliott Waves. Just in case you are not familiar with Elliott Waves. Elliott was from Ralph Nelson Elliott.
Ralph Nelson Elliott a professional accountant, after analyzing close to 75 years worth of stock data, Elliott discovered that stock markets, thought to behave in a somewhat chaotic manner, actually didn’t.
Otherwise, we like to use pattern, such as ABCD pattern. Checkout our posting here for more.
We translate price action chart into layman language. This will help you in understand the financial instrument you are trading. We believe picture worth a thousand words. So, sometimes we use less words. You can learn the price action interpretation too. Give it a tray. You may not have the same view points as us. Remember all analysis read price action chart differently. It is just like reading an essay, we will have different conclusion.
Trade what you see. Manage your risk. Trade well.
1) BlackRock Credit Allocation Income Trust and NASDAQ Composite Index Correlation
We study price action we see BlackRock Credit Allocation Income Trust price action begin to go from low to high. Price Action continues to go higher and have not pullback. We see NASDAQ Composite Index price action also goes from low to high. Benchmark both BlackRock Credit Allocation Income Trust and NASDAQ Index, you can see both have the bull trend.
Trade what you see.
Price Action and moving averages:
BTZ, BlackRock Credit Allocation Income Trust price action has closed above its Short time (20 period) moving average.
Short time (20) moving average is currently above mid-time (50), AND above long time (100) moving averages.
20, 50 and 100 MA are above longer time (200) MA.
Bollinger Bands:
BTZ, BlackRock Credit Allocation Income Trust price action has closed below upper band.
Bollinger Bands are wider than normal.
Price and moving averages:
^IXIC, NASDAQ Composite Index price action has closed below its Short time (20 period) moving average.
Short time (20) moving average is currently above mid-time (50), AND above long time (100) moving averages.
20, 50 and 100 MA are above
longer time (200) MA.
Bollinger Bands:
^IXIC, NASDAQ Composite Index price action has closed above bottom band.
Bollinger Bands are narrower than normal.
Remember, we just read what the chart said. Have fun!
Moses Power Charting
Official AmiBrokerAcademy.com Charting
Disclaimer
The above result is for illustration purpose. It is not meant to be used for buy or sell decision. We do not recommend any particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. Amibroker can program to scan the stocks for buy and sell signals.
These are script generated signals. Not all scan results are shown here. The MACD signal should use with price action. Users must understand what MACD and price action are all about before using them. If necessary you should attend a course to learn more on Technical Analysis (TA) and Moving Average Convergence Divergence, MACD.
Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here. It should be used as learning aids only and if you decide to trade real money, all trading decision should be your own.
We learn from many past and present great traders. Kudo to these master.