The TurnSignal Indicators in Stock Markets

        •  Citigroup on a Daily chart...
        •  Google on a Daily chart...
        •  IBM on a Daily chart...
        •  General Electric on a Daily chart...
 


Citigroup on a Daily chart

CITIGROUP made two nice moves at the end of 2005. Towards the end of August, TurnSignal turned the price bars green on this daily chart but the entry failed to materialize when the Fast Line failed to separate from Medium and the price came back down. In early September, the price rose, Fast crossed and separated from Medium, the Oscillator moved above the Zero line and an entry was presented. The first possible exit came where the Pivot Line moved up to identify a new pivot high in early October. This also corresponded to the cross of Fast below Medium. Eventually, TurnSignal turned the bars red but the price rose again in November with the bars going back to green. Here we see a place where the color change came after the cross but an entry could be found where Fast moved through the top Pivot. Again, the exit would be where the Pivot Line moved up around the beginning of December or at the red price bar towards the end of the year. With the Oscillator showing weaker upside momentum in early December, the first exit would probably be a good choice.

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Google on a Daily chart

GOOGLE moved up and down in the middle of 2006. Using the cross of the Fast Line above the Medium Line along with the change in the color of the bars created by the TurnSignal indicator, two long moves could have been captured. In addition, traders could have chosen to take short positions when the price bars were colored red and the fast crossed below medium. The oscillator confirms the strength and direction of the momentum.

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IBM on a Daily chart

IBM trended higher from the second half of 2006 and continued into 2007. An entry could have come at the beginning of August when the Fast Line crossed above the Medium Line, the price bars moved above both the Fast and the top Pivot Line and the Oscillator moved above zero. While the price bars turned red at the end of September, the Fast did not cross below the Medium and the move continued up into November. At the end of November the price bars turned back to red but a second entry presented itself in early December and continued into the New Year. Some traders might choose to stay long through the color changes and wait until Fast crosses slow to indicate the end of the longer term trend.

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General Electric on a Daily chart

GENERAL ELECTRIC made a nice trending move higher at the end of 2006. TurnSignal changed the color of the bars to green in mid-July, but the Fast Line never moved above the Medium Line to indicate an entry. Also, the Oscillator stayed at or under zero until the move to the upside finally occurred. Once the price started up in the middle of August, Fast crossed above Medium and the price bars moved above Fast to indicate momentum. The Oscillator pointed upward and grew longer. This trending move continued through three changes in the top Pivot Line. While the top Pivot line changed to identify new pivot highs, Fast never crossed below Medium and the TurnSignal indicator did not turn the color of the bars to red until mid-October.

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