WBUY Opinion - Money Flow Index (MFI). One of the most powerful tools in the toolbox. Applied to this stock on a 4 hour chart. The MFI set to a higher number in increments of 14. In this case 42. Notice anything interesting about it? Pat on the back if you cued into the fact that when the MFI goes into a near vertical drop, followed by a hyper sharp pivot, and then an equally aggressive rate of change retracement, the stock is setting up for a major move to the upside. Now it takes a couple other things to be in play for the breakout to occur but the MFI is accurate enough times to merit consideration as a predictive tool. It works this way on any chart timeframe with the MFI setting adjusted up to remove chatter, while revealing money trends and the magic pivots. Want to play the downside? Same setup, just play the topside pivot BUT as we know, stairs up, elevator down, so your entry might need to be entered closer to the topside pivot. This differs from a bottom pivot in which the 40 level is almost the minimum level for entry consideration (similar in principle to other indicators where 20 is considered the minimum). The current drop and pivot are not as clean as I would like to see but, another unique thing about the MFI is, when you get stair stepped trends down as occured through July, it often, not always, results in a momentum based major move with a pop occuring after momentum has kicked into into high gear. Sometimes, not always, maybe, who knows LOL. - Opinion
WBUY All stocks ultimately take out lower lows on high timeframes - even the good ones. Saw an interesting finance review late last week that said 90% of all stocks have a 60% or more drawdown within any 5 year year period. I tried to find one that hadn't and couldn't. In short, never DCA, always put buy orders at the lowest low of the last 6 months. Price will go there eventually. Always has throughout history, always will.
WBUY Opinion - I always struggle with conflicting indicators. One indicator I think I trust implies this stock will make a major move while most others indicate it is topping out. My money is committed so I won't be trading this one Mon. or Tues. but hhmmm. I wonder. Time to query the community. Anyone else getting breakout signals? - Opinion
WBUY Opinion - Money Flow Index (MFI). One of the most powerful tools in the toolbox. Applied to this stock on a 4 hour chart. The MFI set to a higher number in increments of 14. In this case 42. Notice anything interesting about it? Pat on the back if you cued into the fact that when the MFI goes into a near vertical drop, followed by a hyper sharp pivot, and then an equally aggressive rate of change retracement, the stock is setting up for a major move to the upside. Now it takes a couple other things to be in play for the breakout to occur but the MFI is accurate enough times to merit consideration as a predictive tool. It works this way on any chart timeframe with the MFI setting adjusted up to remove chatter, while revealing money trends and the magic pivots. Want to play the downside? Same setup, just play the topside pivot BUT as we know, stairs up, elevator down, so your entry might need to be entered closer to the topside pivot. This differs from a bottom pivot in which the 40 level is almost the minimum level for entry consideration (similar in principle to other indicators where 20 is considered the minimum). The current drop and pivot are not as clean as I would like to see but, another unique thing about the MFI is, when you get stair stepped trends down as occured through July, it often, not always, results in a momentum based major move with a pop occuring after momentum has kicked into into high gear. Sometimes, not always, maybe, who knows LOL. - Opinion
