(C) 2011 www.tigersoft.com 6/23/2011
#3 at top has been entirely re=written on 6/23/2011.
In most cases, ClosingPower leads or coincides with price action. Trading
its trends gives a big advantage to traders. This is expecially true when
the public is not much in the market and opening prices are not wildly
away from the previous days closings. Closing Power measures Professional
buying and selling in the market. Much Opening Action is designed to rig prices and
manipulate public fear and greed.
Important: use CP trend breaks to advantage after there has been a bulge of
Accumulation past +.46 (representing insider buying) and after the Accumulation
Index falls below -.25 (signifying insider selling).
Most Important Rules Are illustrated Here
(1) When a stock is testing its rising 65-dma, use a break in its CP downtrend
as a BUY point.
(2) Often a stock will pull back after a bulge of insider Accumulation. Use
the next CP downtrend-break as a signal to buy.
NEW (3) Expect a rising Closing Power 21-day ma to act as support for the
Closing Power. When that red CP ma holds after a CP decline and the CP starts
moving back up, expect prices to go back to their recent highs, at the very least.
The red 21-day CP ma clearly be rising to have this effect.
The opposite is also true. A clearly falling 21-dma acts as resistance. If the
Closing Power turns down from it, a testing of the recent lows or a new low
often follows. The red 21-day CP ma clearly be falling to have this effect.
(4) Use a break in the CP uptrend to Sell Short, especially if a new price high
is not confirmed by the CP making a corresponding new high.
SELL SHORT
Using Indic-3, sub-menu item one, you will see a chart of both Opening
and CLosing Power. Opening Power is usually correct about true direction
of stock. But when both are rising, the stock goes up the most. Buy B21s
show this. S21s show the opposite condition.
Closing Power Rules
Closing Power is only one of the key tools TigerSoft offers. Consider also
the automatic Buys and Sells, the level of the Accumulation Index, Relative
Strength, chart pattern and support and resistance lines and moving averages.
Use these tools and Peerless signals in conjunction with Closing Power
trend-breaks.
1) Three tests of a Closing Power Trendline at least 20 trading days
in duration is best. The longer the trendline, generally, the more
significant it is.
2) The CP trend is confirmed by its 21-day ma also moving in the same
direction. If a steep CP uptrend is broken, often there is a decline by it
only to its rising 21-dma. So watch for a reversal back upwards from it.
3) Use flat topped CP breakouts and breakdowns. Head and shoulders
Closing Power tops should be noted, as they are reliably bearish.
4) Use CP trend-breaks just after support or resistance has been reached
and prices are moving back in the opposite direction. If the 65-dma is
is rising at a +200% annualized rate, expect that support to hold.
5) Closing Power making new highs ahead of prices usually means a
new price high will follow AND CP new lows ahead of new price lows
are warnings of a bigger decline. Short the latter, especially after a minor
CP rally fails and its uptrend is broken.
6) Use price advances past their 65-dma when confirmed by CP trend-breaks
or a rising CP trend (bullish) or a falling CP trend (bearish). .
7) It is important to use CP trend-breaks after non-confirmations by it of
a new high or new low.
8) Use CP trends when unexpected news hits a stock. Trade the trend of the
Closing Power until there is a reversal by the Closing Power.
9) Watch for CP trend-breaks after it reverses from its own steeply rising or
falling 21-day ma.
10) Use steeper trendlines when prices move far away from expected
support or resistance. This will lock in profits. Do not do this is the first
big move up of a new bull market or the first big move down in a bear market.
11) The biggest price moves are made when both Opening and Closing
Power are moving in the same direction. Buy B21s and S21s show this.
But they lose their value after a very big move.
12) When both Opening and CLosing Power are rising or falling,
a break in the Closing Power's trend should be taken as a sign
the extreme move is ending. It is time to take profits.
13.) Short-Term zig-zags that
bring whipsaws have to
be avoided. But where the short-term zigs and zags
show a reversal of a long established trend, use
take that as a sign a sign of reversal.
14) See how well the CP works with the vehicle you are trading.
in duration is best.
| 2) The CP trend is confirmed by its 21-day ma
also moving in the same direction. If a steep CP uptrend is broken, often there is a decline by it only to its rising 21-dma. So watch for a reversal back upwards from it. |
3)
Use flat topped CP breakouts and breakdowns. Watch for CP head
and shoulders. These breakouts and breakdowns are more reliable
than diagonal CP trend-breaks.
and prices are moving back in the opposite direction. If the 65-dma is
is rising at a +200% annualized rate, expect that support to hold.
new price high will follow AND CP new lows ahead of new price lows
are warnings of a bigger decline. Short the latter, especially after a minor
CP rally fails and its uptrend is broken.
or a rising CP trend (bullish) or a falling CP trend (bearish). .
or new low.
Trade the trend of the Closing Power until there is a reversal
by the Closing Power.
rising or falling 21-day ma.
support or resistance. This will lock in profits. Do not do this is the
first big move up of a new bull market or the first big move down
in a bear market.
Power are moving in the same direction. Buy B21s and S21s show this.
but they lose their value after a very big move.
a break in the Closing Power's trend should be taken as a sign
the extreme move is ending. It is time to take profits.
be avoided. But where the short-term zigs and zags
show a reversal of a long established trend, use
take that as a sign a sign of reversal.
