TA Challenge: Identify the bottom of a falling market with BIAS
As mentioned in the last post, BIAS is an intuitive indicator that cannot alone determine the entry or exit time. Usually, we combine it with KDJ and BOLL. Let's find out how the following combinations work.
1. BIAS+KDJ
KDJ and BIAS are a pair of overbought and oversold indicators used to verify each other and better determine trends.
KDJ and BIAS are a pair of overbought and oversold indicators used to verify each other and better determine trends.
K and D values below 20 indicate that the stock is oversold, and K, D, and J lines crossing each other upward give a bullish signal. If, at this time, the BIAS indicator value gradually climbs in the negative range, an upward trend will likely occur.
2. BIAS+BOLL
When stock prices drop below the lower band of the Bollinger Bands, prices have perhaps shrunk too much and are due to rally. In the meantime, if BIAS is below the negative parameter, it signals to buy.
When stock prices drop below the lower band of the Bollinger Bands, prices have perhaps shrunk too much and are due to rally. In the meantime, if BIAS is below the negative parameter, it signals to buy.
In the above chart, the stock price breaks below the lower band of the Bollinger Bands, and the BIAS reaches the smallest negative value, sending a buy signal.
After learning these combinations, it's time to practice. Comment below if you have any questions.
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USD 20 Stock Cash Coupon Giveaways
Share what you learned by taping the discussion link: TA Challenge: BIAS, a day trading tool for the rebound.
Share what you learned by taping the discussion link: TA Challenge: BIAS, a day trading tool for the rebound.
Review the previous TA topics:
1. MA: How do you identify trends with moving averages?
2. BB: Breakout? Reversals? How to use Bollinger Bands?
3. RSI: How does RSI tell whether a stock is overbought or oversold?
4. KDJ: A short-term trading tool you can't miss
5. PSY: Emotional trading is bad? PSY doesn't think so!
6. SAR: How to use the SAR to spot reversal signals?
1. MA: How do you identify trends with moving averages?
2. BB: Breakout? Reversals? How to use Bollinger Bands?
3. RSI: How does RSI tell whether a stock is overbought or oversold?
4. KDJ: A short-term trading tool you can't miss
5. PSY: Emotional trading is bad? PSY doesn't think so!
6. SAR: How to use the SAR to spot reversal signals?
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Tap more.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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