Most charting techniques revolve around general stock price trends and apply a range of sometimes complex algorithms to deliver stock buy / sell recommendations.
A simple trend analysis where the price over time is plotted and from this range lines applied can provide indicators for future stock performance.
Our Stock Price Trend Analysis is built using current Google Finance Data in a Google Documents spreadsheet. It applies closing price data for the period of Days under analysis to calculate the trend and range of stock prices over the period. From these a trend line is plotted (Red) and a High (Green) and Low (Yellow) added.
The chart below applies real time and historical stock or index prices from Google finance to determine the expected range of price and indicate possible inflection points for buy sell decisions.
This simple stock price indicator leads itself to the application of a few basic trading rules:
Buy Rule
- Positive rising trend.
- Price is within the trigger % of the lower trend line.
Sell Rule 1
- Negative falling trend.
- Price is within the trigger % of the upper trend line.
Sell Rule 2
- Positive rising trend.
- Price is within the trigger % of the upper trend.
- Range is greater than the trigger % allowing a cyclical profit to be secured by re buying at the bottom of the trend.
Hold Rule
- Positive rising trend.
- Price is within the trigger % of the upper trend.
- Range is less than that required to deliver a cyclical profit.
