TECHNICAL CHART ANALYSIS

1. Indicators (MACD and Stochastic)

2. Volume

3. Moving averages

Buy & Sell Signals: - Technical Indicators ... are the first elements to analyze in determining when to buy and sell. The two indicators are the MACD and Stochastic. The MACD is a momentum indicator. Works by correlating 2 moving averages, short term and long term, to demonstrate when the momentum has gone "bullish" or "bearish".

The stochastic is also a momentum indicator. Use it as a second opinion. The basic function of the Stochastic measures a stock's current position relative to the past few days. It measures stock accumulation-buying or distribution-selling. Closing levels that are consistently near the top of the price range indicate accumulation. The closing price, in downtrends, tends to be close to the lower end of the range, and indicates distribution.

Combining these two indicators gives you specific entry and exit points.A buy indication shows up in the stochastic when the black line crosses up through the red line and when the black line in the MACD crosses up through the blue line. When these two events occur simultaneously you have a buy signal.

The buy indication (green arrows) occurs when the stochastic's black line crosses up through the red line at the same time the MACD's black line crosses over the blue line. Your sell (red arrow) occurs when the black line on both the Stochastic and MACD cross down through their red and blue lines.

Volume: The Second confirmation on the buy signals is that these are lining up correctly, is by the volume. Volume is a very critical technical indicator to be aware of. You want to see large amounts of positive volume when buying. This shows interest...(black bars=positive volume) .. When the MACD and Stochastic show a buy signal, always confirm it with increased positive volume.

Moving Averages: An additional confirmation on a buy is the 20 day moving average - the blue line....This gives you an indication of the current trend. If the stock is playing above the 20 day moving average and seems to bounce off of it when it trends up, then the stock is considered to be in an uptrend and this usually indicates a good time to buy. What you are looking for here is for the 20 day moving average, the MACD, the Stochastic, and the volume to line up at the same time. The correlation of all these indicators greatly increases your chances of success, when buying or selling.