Thursday, October 6, 2011

AAPL Chart Request.

First I'd like so say welcome to new members, I'll give you some explanations on the 3C charts below.

 AAPL 1 min (each timeframe effects a different trend in the equity, there are links "Understanding 3C on the right side of the site) a 1 min time frame usually effects short term intraday moves, where signals on longer timeframes are more important and effect longer trend moves. When you see a red arrow, it is a negative divergence and you can see what happened to AAPL's price after that negative divergence, it fell. When you see a white arrow, it is a positive divergence and AAPL's price went up on this 1 min intraday chart. When you see a green arrow, that means price and 3C are in line and the trend is confirmed and expected to continue until there's a new divergence. When you see a white box, that is a more powerful leading positive divergence and a red box is a leading negative divergence. It takes some time to get use to and there are many more subtleties, please read the links about 3C. This looks like a little bit of a bounce from the decline, it is close to resistance so it may have some trouble moving through resistance.

 The longer 5 min chart which is slightly more important shows 2 negative divergences, the first led to a price decline, the second casts some doubt on whether AAPL can make it through resistance in the area.

 AAPL 10 min chart which is more important, shows the start of a positive leading divergence at the white box and prices moved up quickly from the start of the divergence. Since then, 3C has declined and is no longer leading positive, the green square indicates that 3C is now in line with prices, which is a slight weakening of the former leading divergence.
 This is an important 15 min timeframe, many reversals are found at divergences here, the longer they last, the more important. The positive divergence started the uptrend, it was in line and has since started to lead negative a little bit, AAPL is not as strong in underlying conditions as it was.

 The 30 min chart is more important, but takes longer to move, here we see a positive divergence starting the AAPL move up and a slightly leading divergence.

 The 60 min chart shows a green arrow, meaning the downtrend was confirmed, then a white positive divergence sending AAPL higher, and a leading positive divergence, these charts take a longer time to move. AAPL may simply be experiencing a pullback as reflected by the earlier time frames, but f the longer timeframes deteriorate, we'd expect trouble. Steve Jobs died yesterday and it may have some influence on the stock, even though he was only serving on the board.

This is my trend channel for stops, the bottom channel line is a stop out level.

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