About Technical Indicators Charts

Technical Indicators
When you reach a red or green light while driving, do you sit and ponder how those lights turn red or green? No, you know one means go and another one means stop, and you follow the command - no questions asked. That's how I want you to approach these technical Tools. Learn how to read the signals to make a move; don't get sidetracked trying to dope out how the signals are generated.

Phil Town.

General Info

There are 5 Technical Indicators Charts available in the stock2own.com:

  • 30 day Price History includes close price, high and low prices and 10-day moving average.
  • Volume Chart represents trade volume for each day.
  • Slow Stochastic is slow stochastic line, where %K is a "buy line" and %D is a "sell line". In order to generate Slow Stochastic Chart we are using settings recommended by Phil Town: 14-5.
  • Fast Stochastic is fast stochastic line, where %K is a "buy line" and %D is a "sell line". We are using the same settings as for the Slow Stochastic: 14-5. Fast Stochastic can give you more signals than Slow Stochastic, but it also gives you an early signal, which can be useful to know.
  • MACD - Moving Average Convergence / Divergence. In order to generate MACD Chart we are using settings recommended by Phil Town: 8-17-9.
Technical Indicators Charts

There are few comments you should be aware of:

  • All charts are calculated for the latest 30 days.
  • Date axes splited by weeks and each date sequence always started on Monday and ended on Friday.
  • Only close prices included in the calculations. It means that you will not be able to see today numbers until market closed. Very often, today's close price become available only after 8 pm EST.
  • Technical Indicators Charts available to registered users only.

Please refer to the Theory Section to read more about Technical Indicators.


Where can I find Technical Indicators Charts

Technical Indicators Charts are available for you from:

  • Stock Analyzer - Technical Indicators (The Three Tools) section.
  • Stock Detail screen (available from Watch List) - Technical Indicators (The Three Tools) section.
  • Watch List - for each symbol in your Watch List you can see an icon Technical Indicators Icon next to the current market price. Just click that icon and Technical Indicators Charts will appear in the new window.

How to use Technical Indicators Charts

There are bunch of different indicators or charts available, however, we focus only on those, that recommended by Phil Town in his book "Rule#1". Phil Town calls it "The Three Tools". For each chart, there is a "buy" line (black or navy). When buy line crosses up this is a "Buy" signal. When buy line crosses down this is a "Sell" signal.

Phil Town says: When all three Tools are saying "buy", it is time to get in. When all three are saying "sell", it is time to get out. YES, WAIT FOR ALL THREE TO GIVE THE SIGNAL.

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