TAXI Weekly Bar Chart (Strategic Decision) become Bulls or Bears
- MACD-Histogram
- 1st Bullish Divergence
- A: the Bears are exceptionally strong, indicate by MACD-H reach new multiyear lows
- B: MACD-H rally breaking the back of the bears
- C: the Price is reaching new low but MACD-H make higher lows compare to area A
- MACD-H gives buys signal when it ticks up from area C
- 2nd Bullish Divergence (not completed)
- AorC - D - E
- When MACD-H ticks up at E, buys TAXI with 2% risk
- Target is the value zone around 1,100
- 13EMA(yellow), 26EMA(red)
- Price is well below the value zone(an area in between the two moving averages), Bearish
- Bollinger Band
- Price is outside the lower channel, indicating price is relatively at bargain a.k.a cheap
- Conclusion
- Get ready to become Bulls, wait for MACD-H signal
TAXI Daily Chart (Tactical Decision) Timing the Entry Point
- MACD-Histogram
- 1
- A: MACD-H reaching new multii month lows, indicating that bears is strong the price is likely to be retested or exceeded
- B: price is rallying and the MACD-H turn positive (breaking the back of the bears)
- C: Price is declining but MACD-H makes higher low than A
- Bullish divergence is completed when the MACD-H ticks up, giving the buy signal
- The target is value zone (an area between 13EMA and 26EMA)
- 2?
- A-D-E
- MACD-Histogram is still down
- BUY when it ticks Up
- 13EMA(yellow), 26EMA(red)
- Price is well below the value zone(an area in between the two moving averages), Bearish
- Bollinger Band
- Price below the lower Bollinger Band indicating that price is relatively cheap
- Conclusion
- Get ready to be BULL when MACD-H ticks up
- Target at value zone 1,100
- Stop at previous Lows
All trading technique I used for this trade thats about to happen comes from Alexander Elder in his books Trading for a Living and Come into my trading room.
Every trade that I take, there must be a STOP order, in order to anticipate some unexpected events that the trade is not going in my way.
I can not predict the future, but I can tell what the indicators are saying what is likely to happen, based on the previous history.
