Chart Variations


Chart produced by Worden Bros. TC2007

We are back to the 1st window format with a different stock. The major difference is the time frame on this one is longer compressing the daily bars a bit.

The middle panel has two idicators that I use frequently. The first, TSV, is another Wordon propriatary indicator. You can compare it to some stochastics indicators but it includes volume in its computation.

The other middle panel indicator is RSI, Wilder's Relative Strength Indicator. Be careful, later you will learn about the RS, or relative strength, which is quite different.

On my third panel again I have the daily volume. I like to run a 23 day moving average, that's about a month, to help me see when volume is above the average or below.

All the various charts are useful and you will over time find those that seem to help you the most. When you develop a trading style you'll try to match the screens to your style.

The chart shows a simple reversal pattern after a downtrend where the price hits its low and starts going up again.

When the green 10 day ema crosses the 20 day ema going up fairly steeply it signals a probable reversal. Be careful as this approach can result in way too many crossings to play profitably. Be sure that the crossing is at nearly 45 degrees for the 10 day ema. Note how the ema's smooth out the day to day spikes and how the crossing lags the actual reversal day.

We can plot two indicators such as TSV and RSI on the same chart window even though their scales differ. That works because they both are oscillators with a midline, a halfway point between their minimum value and their maximum value. We only care where they are now in relation to their midpoint, not the numeric value.