North of the Blue is a technical stock analysis system that helps determine the correct time to invest and, more important, the time to sell.
The Momentum Analysis Panel does not provide leading indicators but supporting indicators. For example, in the chart above every time the price started down the Upward Price and High Price Strength began to fall. When they fell below 85% the price line in the top panel took a serious drop.
There is one case where the Upward Price and High Price Strength do operate independently of our Blue Moving Average Line in the Price Analysis Panel. This is the case of the Stochastic-W or what we sometimes call the "Power-W". Here is the rule: every time the Upward Price and High Price Strength join together and form a clearly defined "W" under the 15% line in the Momentum Analysis Panel the stock price is going to seriously gain. We are not talking a little gain. Generally the price will begin a trend line that will continue for quite a while.
If you buy using the Power-W as a guide be aware that you are always buying when the stock price is well below our Blue Moving Average Line. This involves serious risk because the Buy Point for this rule is when our High Price and Upward Price Strength together cross the 15% line and are moving upward.
We have never found a situation in which this rule has failed. HOWEVER, past performance is never a guarantee of future performance so treat this rule with caution and be prepared to sell quickly should the price turn down.
This is the second of our "never lose" rules. Our first, of course, is that one should buy when the stock price goes up through our Blue Moving Average LIne and sell when it declines and crosses our Blue Moving Average LIne. The same caution applies: past performance is never a guarantee of future performance so treat this rule with caution and be prepared to sell quickly should the price turn down.
