Moving Average is an indicator used in technical analysis showing the average value of a security’s price over a set period. MOving Average can show the direction of a trend and to smooth out price. Typically, upward momentum is confirmed when a short-term average (e.g.50-day) crosses above a longer-term average (e.g. 100-day). This is called the “Golden Cross”. The long-term moving average becomes the new support level.
Downward momentum is confirmed when a short-term average crosses below a long-term average. This is called the “Death Cross”. The long-term moving average becomes the new resistance level.

From the image above, chart of Ford, the “death cross” is in the circle. I use the 50-day MA and 100-day MA. After the “death cross”, Ford tumble reaching $1 from $6.

Tags: death cross, ford, golden cross, Moving Average, Technical Analysis

There has been many discussion about which strategy is better, fundamental analysis or technical analysis. Technical approach has been reinforced by trading software which can be used to predict price based on price simulation, where it uses models for each market without regard the underlying economy or fundamental which driven the market. Several recently developed programs help boil down the maze of economic and fundamental information into a form useful by traders who do not have formal training in economics. These programs help track the impact that economic indicators have on price in various markets. Such software gives traders an easy-to-understand link between fundamental data and price. The technical analysis is easier to use than fundamental. But when the market crash on October 1987, traders started to pay attention on the fundamentals, like unemployement figures, trade deficit, unemployment, and
commodity supply/demand data . With the combination of two strategy, we will have quite a powerfull strategy.
Technical analysis tells us when the price will likely move, while fundamental analysis tells us what stock is good. By combining the two strategy, we can have a good stock which the price will likely move. In this ebook, I want to combine the two stategy to make a new strategy, the combination on fundamental and
technical analysis. A trading plan is needed to win the battle win other investor. You need to know how to choose a good stock, and how to choose a stock which will move in favor of us shortly.

Learn more here.

Tags: Fundamental Analysis, Technical Analysis

If you want to get rich from the stock market, how do you do it? What strategy will you use? Is it value investing that warren buffet use? Technical analysis, or penny stock trading? All have different characteristic. What I know is value investing / fundamental analysis has lower risk and lower return. While technical analysis, and penny stock trading tend to be more risky but have higher return if you guess it all right. With value investing you can enter the market within a long period, like weeks. But in technical analysis, and penny stock trading timing is very crucial. You have to enter quick and exit quick.

What we can learn from this is, if you have lots of money like buffet had use fundamental or value investing. But if you just have small money, trade with technical analysis, buy penny stock, or swing trading. Once you have more money, that your movement will affect the price, change your strategy with fundamental analysis or value investing.

Tags: Fundamental Analysis, penny stock, penny stock trading, stock market, Swing Trading, Technical Analysis, Value investing, Warren Buffet

Invest4y.com is recognized as the leading provider of technical analysis stock software. Amazing stock trend signal buy sell signal software catches stock trend signal change in the very early stage when stock trend is changing and alerts stock buy sell signal when stock trend is formed.

This stock software is built on invest4y.com’s 4T stock trading strategy, i.e. WAIT, HUNT, SHOOT and PROFIT. You know exactly when to buy, hold or sell stocks with help of 4T stock trading strategy. It focused on trend, which can’t finish in a couple of days, but once it is formed, we have to respect it.

The software catches trend change signal in the very early stage when the stock trend is changing. After Amazing Stock Trend Signal Software alerts trend change signals, it will suggest buy sell signals if the stock software considers the stock trend is tradable. Learn Invest4y More.

Tags: Invest4y, Invest4y.com, stock software, Technical Analysis, technical analysis stock software

Swing trading makes profit from swings in price movement over several days. Swing trading is based on the technical analysis strategy, which observe market activity from price and volume. Price can rise stimulated by greed and fall by fear. Swing trading uses others emotion for investing. It starts to enter when greed starting to grow, and exit when fear is coming. The key to successful swing trading is picking the right stocks. The best candidates are large-cap stocks that are actively traded, so that you can easily buy and sell it.
How?
Swing traders use technical analysis to look for stocks with short-term price momentum based on their price trends and patterns. When price move up with high volume it is time to buy. When price move down with high volume it is time to sell. Money management is very important for swing trading. You have to limit your self from loss. When you have reach that loss limit, you must be disipline and close your position.
For who?
Swing trading is very easy for beginner traders, but it can also offers significant profit for intermediate and advanced traders. This is mainly used by individual. Large institutions are too big to move in and out quickly.

Tags: price, price momentum, Swing Trading, Technical Analysis, traders, volume