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Rules for using North of the Blue are very simple but you'll need a copy of our program. Please download
a trial version
by clicking on the download bar above.
Our rules begin with a common sense observation: Before doing anything, look at the world. If someone has just
"nuked" Berlin or Paris its probably not a good day to buy stocks. When oil
prices top $100 and interests rates jump 2% at a Fed meeting, think about waiting until the
situation settles down. Now, in "normal" times, here's what we can
tell you.
Buy signals occur when:
- A stock's price rises through our Blue Moving average. We call this
area "North of the Blue". You'll see it on
the top or "Price Graph" window of our charts.
and
- A stock leaves a "Red Zone", either red "jail bars" in our
Price Graph panel or a true Red Zone in our middle or "Momentum" window;
and
- A stock's Upward Price Strength and High Price Strength momentum
stochastics climb through our 15% line (50% depending on your "Caution
Quotient") and remain together or very close in our Momentum Window;
- Confirmations are found when:
- there is significant buying volume in our bottom
or "Trading Volume" window. To make this event easier to see, we put a
blue dot or "Volume Tick" under the day's activity in our Price Graph window.
- An additional, and significant, confirmation signal occurs when the stock's price
climbs through a green Resistance Line.
Sell signals occur when:
- A stock's daily price line falls through our Blue Moving Average;
- Confirmation signals occur when:
- A stock falls through a support line;
- A stock's Upward Price Strength and High Price Strength momentum stochastics fall through
the 85% line;
- A stock experiences significant selling volume as seen in our Trading Volume window.
To make this easier to see, we put a red dot under the day's activity in our Price Graph
window.
That's it, folks. There are variations on this theme for the
"fighter pilots" among us who try to squeeze the lowest possible price out
of a buy and the highest out of a sell. These themes have the
potential to increase returns, but at the expense of increased risk.
How accurate are the rules? Start our program, select any longer
term chart picture and page through the ETF listing. We are 100%
accurate for more than two years -- probably longer, but we just have not
taken the time to look. 100% accurate buy and sell signals for over
two years is long enough to validate the accuracy of North of the Blue for
us. Since we use it to spend our own money, we're the ones whose
judgment really counts.
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