how not to miss the trading signal at any time

Hi friends,

One of the most basic skill a technical trader needs to pick up is to have a technique to track and verify trading signals as soon as they occur. In other words, where safety in the market is desired, there will be no forecasting involved, and the confirmation is to be derived from pure historical means and mathematical manipulations or charting using historical data that has already occured.

But first, the necessary preliminaries:

There is no element of forecasting in this post and chart. There is also zero fundamental content in this post. You are encouraged to skip this post if you are a fundamental investor or long term position trader or if you are solely interested in forecasting. Thank you.

Now on to the discussion:

We know that momentum is one of the main indicators that can show the continuation of past movement - the initial state of the body, either of rest or of motion, will persist and "If the force is greater than the resistance, motion will result". Put simply, if we can identify the exisiting momentum of VPG and know whether the magnitude of the momentum is sufficient to push it past a resistance, then we will in all probability have a very good idea of whether the momentum will lead VPG to higher prices..to above the 10 cent level and beyond or otherwise.

To answer this question, I have plotted a special momentum indicator for VPG just below its bar chart as shown below, together with the necessary comments:



The inferences:


1. If the momentum indicator is above the trigger line, any dips should be bought as the momentum will lead to a higher bounce and higher prices as these dips will meet with support.

2. On the contrary, if the momentum indicator is below the trigger line, any bounce to the trigger line faces resistance, and may be turned back so that the momentum will retrace before maintaining another test of the trigger line until it succeeds.

3. VPG is currently executing such a test of momentum at the trigger line, having been turned back twice at that trigger line.

4. A decisive breakout above the trigger line ( 3% passing min- 5% is more than adequate to confirm the passing) will indicate that the momentum is sufficient to trigger off a continued uptrend. Conversely, a pull back will suggest more profit taking.

5. Also, note that I have plotted red dots to indicate the various major pivot tops and bottoms, and at present, no red dot is seen at the close of today's trade to indicate a top...will it come tomorrow or any time soon or will the momentum continue to carry price upwards?

It is very hard to miss this event if we track the momentum daily or even to fall back to the 60 min intraday chart to gauge the success or failure of this momentum test, and to identify it as soon as it comes to pass.

May the best prices be yours

dascore