Gold bulls took one of their biggest hits in some time on January 4th and so far it has failed to appreciably recover. So what's next for this most precious metal? Take a few minutes and watch how this one little indicator has been catching the swings in gold incredibly well for the last several months. You may or may not be familiar with this little known profit maker, but if you're not yet using it you certainly want to learn how to profit from it in 2011.
We are talking about the Williams %R indicator. The Williams indicator is calculated using 14 periods and can be used on intraday, daily, weekly or monthly data. The time frame and number of periods will likely vary according to desired sensitivity and the characteristics of the individual security. And lately it has been very reliable for entry and exit strategies on gold. Watch our latest video from MarketClubs Adam Hewison on how he has used the Williams indicator for trading gold.
In December Hewsison told us "On charts, gold cut early losses, bouncing off lows at around $1,362 an ounce, a key support level in line with a series of lows set in December". Hewison also said "gold's bounce up from session lows signals that it has found support after falling this week. Every time when gold had gotten down to these levels, it's very close to making a reversal higher. Gold has risen toward its record $1,430.95 an ounce level three times since November but failed each time." Let's go to the video and see how Adam will trade gold using the Williams indicator.
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Showing posts with label Williams %R. Show all posts
Showing posts with label Williams %R. Show all posts
Friday, January 7, 2011
Sunday, May 31, 2009
Have You Missed The Move In Crude?
Have you missed the move in crude oil? Here's a quick score card on ticker DXO. You be the judge.
Feel free to leave a comment to let our readers know where you think crude is headed.
MACD
DXO is trading above its 200 minute moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.
Bollinger Bands
DXO is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.
Parabolic SAR
Today, DXO closed above the trigger point for the Parabolic SAR and is currently registering a bullish signal. The current Significant Point, below which a reversal to the bearish side would occur, is 4.12.
Williams %R
According to the %R which is currently at -6.67% and above the critical level of -20, DXO may be overbought. While a stock that is overbought may continue to rally, investors should be especially careful when DXO begins to lose strength and the %R dips below -20.
Directional Movement Index
The +DI line is above the -DI line and the ADX is greater than 20. This is a bullish signal that indicates the stock is in a confirmed uptrend.
Today’s Stock Market Club Trading Triangles
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Feel free to leave a comment to let our readers know where you think crude is headed.
MACD
DXO is trading above its 200 minute moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.
Bollinger Bands
DXO is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.
Parabolic SAR
Today, DXO closed above the trigger point for the Parabolic SAR and is currently registering a bullish signal. The current Significant Point, below which a reversal to the bearish side would occur, is 4.12.
Williams %R
According to the %R which is currently at -6.67% and above the critical level of -20, DXO may be overbought. While a stock that is overbought may continue to rally, investors should be especially careful when DXO begins to lose strength and the %R dips below -20.
Directional Movement Index
The +DI line is above the -DI line and the ADX is greater than 20. This is a bullish signal that indicates the stock is in a confirmed uptrend.
Today’s Stock Market Club Trading Triangles
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