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.
Yes, I can answer your question. What you are finding is called a trend. If it works for you, keep it!!!
As far as Market Makers....
Market makers make a market. They are not traders, so to speak. They have a role and that role is to maintain liquidity. They make their cut with the bid/asked Spread. Nothing more. Its always comical for me to read posts where people think the market makers are behind a move. They are not!!!!!!
You dont understand my point. Im EXACTLY on target as we watch this " puppy bleed red all afternoon back to the" revision of the mean". This could just be the shorts attacking again but the 8sma doesnt ask those questions. Price and the 8sma always meet for a "kiss" sooner or later every several bars or so. Its ok, we all have to start some where
Thanks for sharing. I started trading this stock in the $11-13 range. At first I intended to hold long as I believed EV should be part of China's strategy to fight air pollution. The last 2-3 months talks about scam/frauds inflicting big volatility to SP as KNDI is a Chinese reverse-takeover stock. I believe the shorts and MM have a lot of sway on this stock. May be they read charts as well.
No. Im just saying price will pull back to the sma or else price stalls and waits for the sma to catch up. They usually meet for a "kiss" (touch) sooner rather than later Look how soon it started happening. this price action this afternoon is much quicker than I would or anyone could have anticipated. Thats why most day traders get buried.
As a classically trained MBA/MFin who specializes in fundamentals based valuations, I had to teach myself tech analysis as it's "frowned upon" in academia. I have come to realize that both fundamentals and technicals can and should co-exist to inform the rational investor. Great observations and I fully concur!...Your call and my call jive with one another. Short answer: on average, KNDI will move about $1.25-1.75/mth upward over the course of a year for the foreseeable future. Sure a black swan catastrophe or positive catalyst can send it soaring but it will revert to the mean behaviour and trend...
facts, roller, this should be a very interesting afternoon as the biggest volume today on the 15 min charts has been an up bar but the largest/widest candle has been a down bar. This should be an interesting afternoon as you clearly have 2 groups working today. The gappers who glommed this thing up at over 21 and the sellers who have been unloading it all day till 1:20. Already we are in the red at 1:22 and volume is already almost 4m! Either a short fake out just took place and the longs are going to reverse this sharply or we are in for a bloody red afternoon. Who has the popcorn going???? -)