I managed to load some free EOD data into multi charts for FMG, a bad bar 14/08/09 but shouldn’t make a difference in my comparison.
I know we all hate hindsight trades, but just a demonstration of what the indicators I use looked like on tech’s FMG chart. I saw two examples of ‘jumping the creek’ in the period of tech’s chart.
FMG May to June 2009 had a lovely spike up, I probably would have missed this but I was given a pullback signal 08/07/09, had I open a position next day at open I would have gone long at $3.50, end of trend printed 23/07/09, closed position next day at open $4.55. 30% profit. 4% heat on trade.
01/09/10 to 24/09/10 to me was displaying a ‘jumping the creek’ move price action was batting around above the previous resistance level, but like tech/as trend lines, heavy resistance was around $5.50. So let’s say I put a buy stop in at $5.60, exit position at end of trend printed 16/12/10, close position at open next day for $6.75. 20.5% profit. No heat on trade. To me, the break of the batting movements above previous resistance showed that it was accumulation and therefore a buy signal.
I do use volume analysis with my trading, this example is just for the purpose of showing the life of a trend using just the Sine Wave Indicator.
Also note these examples are the bare basics of the methodology.