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Kandi Technologies Group, Inc. Message Board

  • mince38 mince38 Aug 21, 2014 12:36 PM Flag

    Let an old trader tell why we are backing off the high today!

    I know many of you do not believe in technical analysis. I am going to prove a very simple concept right now. Put up both a weekly and a daily chart of KNDI. Now add an 8 simple moving average to the chart. Thats all. Notice this stock(and almost all others) will always seek to return to that area, that line where the 8 simple is. We at this point are what is called in trader jargon "over extended." Its not a guarantee we cant break todays high by end of session, just that the odds arent with us at all. Notice on the daily or weekly chart that whenever you got more than an inch away from that line, it always pulled back. Over 90% of the time. And we are certainly further away from that 8 sma line than weve been in a long time. If its only away from the price bars(i use candlesticks) on just the daily, thats a big confirm, but on the weekly as well, really means this stock is going to need a rest very soon. Maybe as of today or end of day. Isnt it amazing how accurate this stock stays near that 8sma. Is it math or do the mm's look at the charts the day before. Ha! Even the best traders cant answer that. But it works. I'd love to see this go to 25 today and be wrong. But odds dont favor it till at least next week or 2. This is what I traded with for many years and its better than almost any indicator you can buy.

    Sentiment: Buy

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