Investment Information 3/10

Candle Size

It's an indicator of opening and closing price, not intra-period volatility. (i.e if. your chart is day, it only shows opening and closing price of the day, not intra-day volatility). More on Doji Candles

Magnificent Seven Technical Analysis

Time to put in some practical with stocks that seems to do well. Using tradingview.com, I put in the two indicators for RSI and Bollinger Bands to see trends for these stocks:

1. S&P500 ETF
2. Nvidia
3. Microsoft
4. Tesla
5. Meta
6. Amazon
7. Alphabet (Google)

Observations:

1. S&P is more predictable than Nvidia.
2. From Microsoft, seems that if (1) Price is under or near lower Bollinger Band, and (2) RSI is under 20 -- it's time to buy!
3. It's a lot more complex when playing "Replay", but it helps to do paper trades on the test data
4. Doing a "replay" simulation with TSLA, I would gain 50% over the past 10 months. Strategies played: (1) Buy when RSI past it's minimum point and is now going up, and BB is out of / touching the line. Mistake: Buying when haven't exceed lower BB. If I bought and held, it would have been 180% return.
5. Doing a "replay" simulation with META, I gain 36.7% over past 7 months. On this I did well to buy/sell only when there is deviation from Bollinger Bands, because there were many times that the rise / fall push the BB up / down. But if I bought at the start and held it all the way, I would have gotten 45% return.
6. With AMZN, I got 3% gain. Holding the same duration would be 27%.
7. With GOOG, I got 19% gain. Holding would be 25%. Also I'm a bit tired now because it is 12.30am. I guess that's a lesson on trading when awake. Also, I managed to observe a Doji Candle that indicated a reversal trend and picked right!
8. NVDA. 12% managed. 0% unmanaged.

Next Time:

• Try simulation with MSFT and S&P
• Support & Resistance
• Fibonacci Retracement