For all you chart fiends, and others interested in trading using...

For all you chart fiends, and others interested in trading using Candlestick signals on your charts, here is an
extract from :

http://www.candlestickforum.com/PPF/Parameters/11_7296_/candlestick.asp

and video by Stephen Bigalow, on 16^th January 2018 :

Quote
Maintaining long positions is dramatically enhanced by utilizing a very simple indicator the T line.
There is a very powerful implication utilizing the T line with candlestick signals.

Candlestick signals are the graphic depiction of human nature.

The T line acts as a natural support and resistance level of human nature, with Fibonacci characteristics.
When you add the graphics of what is occurring in investor sentiment along with the natural support and resistance level of the T line, you have a very powerful trend analysis combination.

Whether you’re trading candlestick signals as your primary trading method or you overlay the charts of whatever successful trading method you are utilizing, you greatly enhance your analysis capabilities.
End Quote

FYI the T-Line – that Stephen Bigalow refers to above, and in his video presentation - is an :

8-day EMA (Exponential Moving Average.)

You need to listen to the video (but not all of it) to soon understand when and how to trade stocks on a short term basis, using the position of the T-line on your stock’s chart.

Note that Bigalow’s video illustrates charts for “heavyweight” US-stocks, for which his? T-line (the 8-day EMA) appears to work well.

But if  I applied that 8-day EMA  to my BGS chart, and religiously traded on it – since Dec 4^th  – I’d have been

out    3 times
(within the last half-hour of the day’s trading if it was highly unlikely – in that period - that the SP would not close back above the T-line) :   on 08 Dec, 02 Jan, & 09 Jan. and

back in again 3 times  
(at a slightly higher SP, once the SP had traded noticeably back above the T-line on A following day) :
   on 11 Dec, 03 Jan, & 12 Jan.

Well you might say what’s the point of that? i.e. losing some 11.5c capital gain, (over 3 trades),
by not trading at all, on such a basis, which I’d of course agree with.

So bearing in mind that BGS of course is in the small-cap mining category, I changed my BGS chart’s T-line indicator to a

10-day EMA

On this changed basis, or even using a 12-day EMA,

I’d have been

out only once, @ ~ 73.5 on   9 Jan. and
back in again once   @ ~ 76.5 on 12 Jan.
i.e. @ a much lower loss of 3c capital gain, had I not traded.

Some of you might recall a previous post of mine – related to use of SMA’s (Simple Moving Averages).
I then stated that the long-term one    – of 200 days (= to 40 trading weeks) was universally the one used for industrial stocks, but IMO was not suited to
small-cap miners (like BGS)   for which I’ve used a 35-day SMA, (= to only 7 trading weeks) since 1999.   Guata.