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Arian Silver stock (LSE:AGQ) now tries to find some bottom after an over-extended bear market. Could this be the beginning of a protracted rally or could it be just a pause in the context of a downtrend? The answer to the next possibility is given below, plus it pays to check the price data constantly to know what this stock is doing. Speculators are worse-off without price data.
The ADX and the MACD (default parameters) are used here. Both indicators currently give mixed signals. The ADX line is below 20, showing a trendless market. The DM- and the DM+ do not show the bull or the bear as a clear winner. The MACD signal lines are below the zero line and its histogram is above the zero line.
Within the next several trading days, there should be a clear signal. So…
If the ADX line is above the level 30 and the DM+ is above the DM-, while the MACD histogram and signal lines are above the zero line, then that is a Bullish Confirmation Pattern and long trades should be sought.
If the ADX line is above the level 30 and the DM- is above the DM+, while the MACD histogram and signal lines are below the zero line, then that is a Bearish Confirmation Pattern and short trades should be sought.
Speculators invariably ignore the fact that prices plummet when people do not expect them to do so. There is an unending desire for bull markets, out of avarice, and this means that speculators would prefer to overlook potential reversal patterns in the markets, thus failing to get ready for a new trade that is in the offing. This is true of bull and bear markets.
This article is ended with the quote below:
“Realize that there’s a huge difference between knowing and doing… Unfortunately, the best way to learn is from your own mistakes. Having a good mentor could also accelerate your learning curve, but keep in mind that ‘you can’t teach a man anything; you can only help him to find it within himself.”’ – Ivan Hoff (Source: Tradersonline-mag.com)
Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders
