TIMING FACTORS

• Money Flow Index (MFI) is a momentum indicator that measures the strength of money flowing in and out of a security. It is related to the Relative Strength Index (RSI) but whereas the RSI incorporates only prices, the Money Flow Index accounts for volume.  Money Flow Index is interpreted as the following: Look for divergence between the indicator and the price action.   If the price trends higher and the MFI trends lower (or visa versa), a reversal may be imminent.  Look for market tops to occur when the MFI is above 80.  Look for market bottoms to occur when the MFI is below 20.
   
• Relative Strength Indicator (RSI) is a popular oscillator.  The name is slightly misleading, as the RSI does not compare the relative strength of two securities but rather the internal strength of a single security.  A  more appropriate name might be "Internal Strength Indicator".
   
• MACD (Moving Average Convergence/Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices.   The MACD is the difference between a  26-day and a 12-day exponential moving average.  A 9-day exponential moving a average , called the "signal" (or "trigger" line) is is plotted on top of the MACD to show buy/sell opportunities.  The MACD  proves most effective in wide-swinging trading markets.  There are three popular ways to use the MACD : crossovers, overbought/oversold conditions and divergences.
   
• RMO Trade Model consists of 4 key modules:
       1. The RMO detects the primary trend of the instrument's trading value.
       2. Swing Trader (Indicators & Expert) detects each swing within a trend and automatically places red (Sell) or blue (Buy) arrows on the price chart at these points.
       3. Sentiment Detector colors the OHLC chart bars red (bearish) or blue (bullish) indicating the prevailing sentiment.
       4. Exit Swing Indicator is used only when registering a profitable trade as a trailing stop loss and works well as an exit signal.
   

• Color Code: 
  RED Symbols in SELL/WATCH indicate       GREEN Symbols in BUY/HOLD indicate
  (1) an unconfirmed BUY ALERT (top) or      (1) an unconfirmed SELL ALERT (top) or
  (2) a confirmed SELL ALERT (bottom)         (2) a confirmed BUY ALERT (bottom)
      
  BLUE Symbols of NEW ADDITIONS usually placed on top of BUY OR SELL ALERT columns.
  
  

• Book References:
  
  Battle for Investment Survival by Gerald Loeb
  Gorilla Game by Moore, Johnson and Kippola
  Visual Investor by John Murphy
  Technical Analysis from A to Z by Steven Achelis
  Intelligent Investor by Benjamin Graham
  How to Make Money in Stocks by William J. O'Neil
  How to Select Stocks Using Technical Analysis by Martin J. Spring
  Investor's Business Daily and the Making of Millionaires by David Saito-Chung
  Beating the Streets by Peter Lynch and John Rotchild
  Power Investing With Sector Funds:  Mutual Fund Timing & Allocation Strategies by Peter W. Madlem
  
  
  
  
  
  
  
  

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