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NorthoftheBlue
Basic Rule
With Our Unique
BLUE MOVING AVERAGE
RULES AND CHARTS
- First and foremost analyze your own financial situation and your goals. How old are you? Can you afford risk? If so, how much? Will you be using your investments as income to live on? Your financial advisor, attorney or accountant can help you come up with answers to these and other questions. Now look at the macrocosm in which we live. How is the economy doing? Do you see room for growth or have the Bears taken control? Reading good financial papers such as The Wall Street Journal, Investors Business Daily or The Economist are good places to start.
Stocks, bonds, ETFs and Mutual funds present buy signals on NorthoftheBlue charts:
- At the point where our Trend Line in our Price Analysis Panel rises above our BLUE MOVING AVERAGE and the Upward Price Strength (Black) Line in the green Momentum Analysis panel is either above or on the High Price Strength (Blue) Line in the green Momentum Analysis Panel and these two lines, the black and blue line climb above the 50% line.
Stocks, bonds, ETFs and Mutual funds present sell signals on NorthoftheBlue charts:
- At the point where our Trend Line in our Price Analysis Panel falls below our BLUE MOVING AVERAGE or the Upward Price Strength (Black) Line in the green Momentum Analysis Panel drops below the 85% line.
North of the Blue Chart Overview
Trend Graph
- The Trend Graph is used to measure a position's current trend in relation to its
“Blue Moving Average” as is shown in the chart below.
The Blue Line in the Trend Graph is North of the Blue's proprietary Blue Moving Average.
- The Bold Black Line (Trend Line) in the Trend Graph represents the trend of the position being evaluated. The Trend line is black when it is above the Blue Moving Average and turns into a Bold Red Line when it is below the Blue Moving Average.
- The Jail Bars are created when the Trend Line turns from black to red as it
moves downward and crosses the Blue Moving Average.
Power Graph
- As our Professional Rule says, A Buy Signal is created at the point where our Trend Line in our Trend Graph rises above our Blue Moving Average and the Upward Price Strength Line (Black) Line in the Power Graph lies above or on the High Price Strength (Blue) Line.
- The Black and Blue Power Lines in the Power Graph are used to help
determine the directions of a Trend in a position. To help
identify said Trend the numbers 15, 50, and 85 have been placed on the right side of the Power Graph. This will help correlate the Trend Line in the Trend Graph to the Power Lines in the Power Graph. This means that when the Power Lines cross the 50 Line in the Power Graph, most likely the Trend Line will be crossing the Blue Moving Average in the Trend Graph.
Volume Graph
- The Volume Graph is the panel on our charts that monitors the quantity of shares of a stock that is being traded on any given day.
- Volume Chart Details
- Blue columns measure days that ended in positive buying volume (price went up).
- Red columns measure days that ended in selling volume (price went down).
- Yellow columns measure days the volume did not change. (NOTE: After
5:00 pm some charts may have a yellow volume column. To verify this simply click "+1Day" at the bottom of the chart page. )
- The black line that travels horizontally represents 100% of average volume.
- The green line that travels horizontally represents 140% of average volume.
- When a column exceeds the green line a blue or red dot appears below
the Trend Graph to help view these above average volume spikes.
- Alone the Volume
Graph tells us little. When using North of the Blue all graphs
should be used in an integrated fashion to form one master chart.
Insider's Tips
- Place your cursor anywhere on the Stock Price Line and we display the date, open, high, low, volume as a percent of normal, and close prices. Remember to click on the "Show" button in the upper right hand corner of the screen to get back to current values.
- Almost every chart contains red or blue dots under the upper or Financial Analysis Panel. Blue dots represent days when the buying volume significantly exceeded the average volume while days in which the selling volume significantly exceeded the average volume are marked with red dots. Of course you can see the same thing by looking down at the Volume Analysis Panel but by doing this we keep significant information together.
- You will sometimes see yellow volume bars. We put them in when we use these to show that the volume was very nearly the same as the prior trading day.
- Sometimes you will see a "0.00" in the bottom right hand corner of the stock chart. This means that our quote supplier has not provided us with a final quote for the day.
Trend Graph
The Trend Graph is used to measure a position's current trend in relation to its
“moving average” as is shown in the chart below.
- The Blue Line in the Trend Graph is North of the Blue's proprietary Blue Moving Average.
- The Bold Black Line (Trend Line) in the Trend Graph represents the trend of the position being evaluated. The Trend line is black when it is above the Blue Moving Average and turns into a Bold Red Line when it is below the Blue Moving Average.
- The Jail Bars are created when the Trend Line turns from black to red as it
moves downward and crosses the Blue Moving Average.
How North of the Blue Charts Work
Our Rule and our algorithms are all proprietary and have been battled tested with real money over the last 11 years. Through good, bad and absolutely disastrous markets they have worked.
Here is an example of how the charts work. A stock, bond, ETF or mutual fund sends a Buy Signal and becomes a buy candidate when its trend line (black line in the chart below) crosses through our Blue Moving Average going up -- North of the Blue. It sends a Sell Signal and becomes is a sell candidate when it falls through the Blue Moving Average. These are our Buy and Sell Signals but they may not be yours. Yours depend on many personal factors which we don't know, so only you can decide when to buy or sell a stock, bond, ETF or Mutual Fund.
How hard is all this after looking at charts that make your eyes glaze? You don't need to use your imagination to see a "cup and saucer" or a "head and shoulders" or any one of a dozen or more "patterns" to make your buy and sell decisions. And, never, ever put a ruler or straight edge against your screen to see a line. We not only show you the important lines, we highlight them in color. What does the system you use require you do before making buy and sell decisions?
Putting it Together in Real Life
This video will give you a chance to see our basic rules in action by a man who has lost some and gained much through North of the Blue. Listen as he explains why his investing has been in the end so successful. After reading this the quiz question is this: Why did Ryan fail and then succeed using North of the Blue's charts and rules? The answer is simply this: He learned to trust and follow our rules. Success was as "simple" as that.
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