Where's the Market Going? Can You Read This Chart?


This chart has double SunnyBands and Sunny's DMA_Histogram as its main indicators. It also has the bars colored by day session or night session, with her PaintBar indicator sjh_DaySession.

It is very easy to read if you know what you are looking at.

Double SunnyBands:

In the top data window, subgraph 1, the bars in the day session are colored red and blue. As soon as the regular session closes and the extended session opens the bars become green and magenta. You read these like normal candlesticks. Blue/green are up candles, while red/magenta are down candles.

The first SunnyBands are on the 1-minute data.They are colored DarkTeal and DarkGray.

The second set of SunnyBands are colored Cyan and LightGray. They are calculated on a hidden set of 5-minute data bars. That way you can see where the 1-minute SunnyBands are oscillating within the 5-minute bands!

As the 1-minute bands move to the top of the 5-minute bands, you can know that the market will either move sharply up and over the bands, or it will peter out and turn down. Wait for it. The market will quickly tell you which way it wants to go. Watch the Histogram for confirmation.

It's magnificent. Bands oscillating within bands. It's pretty easy to tell that this market is going down. The next move will be down to the lower cyan and lightgray band, which is sitting at 1403.

Dynamic Moving Average Histogram (sjh_DMA_Hst)

Your next hint is through reading the green and red line that goes back and forth over and below the gold zero line. This indicator is Sunny's DynamicMovingAverage Histogram (DMA_Hst). As the Histogram moves over the zero line we expect the market to move upward. The zero crossing is the same as the Gold and Purple DMA crossing, except that it is easier to read. Likewise, when the Purple moves below the Gold on the DMA, the Histogram moves below the zero line and the curve turns red. Then we expect the market to move downward.

In this chart you can read divergences as well, by comparing the DMA_Hst to price action. Reading the divergence gives you an early warning that market movement is changing direction.

Want to Buy It? 50% off!!

These indicators are for sale. If you decide to license any of these indicators, and you saw them on this particular chart, you can have a 50% discount, just by mentioning this chart!!

Call Sunny at (760) 908-3070, or email her, or go straight to the Shopping Basket and put you price in the Other Prices section.