The chart is getting a makeover: Time to upgrade..
Post# of 1023
This, and every post, is based on my calculations, my perceptions of momentum, and my investment strategy as a long investor.
From now on, I will include a third moving average line in my calculations. The MA’s will now include:
Long term momentum gauge:
200MA – Green line
Medium term momentum gauge:
100MA – Red line
Short term momentum gauge:
50 MA Blue line
The reason I added the third MA line is because I believe (not investment advice ) SCIE will show sales this year; and this added variable changes everything. I believe there will be an increase in SCIE’s volume and price, which means I need a better way to track SCIE’s momentum.
Why? Because with volume, comes price, and with price comes momentum, and all of this may lead to a substantial run. And I want to know as best I can when this run may occur.
It’s well known that, according to the theory behind acceleration of price, that price tends to move in the same direction rather than change direction. In other words, once SCIE builds momentum, if the price goes up, it is likely to continue upwards (as long as the momentum is there).
With this, I believe price and volume will begin to increase during the 2016-2017 year. By adding this third MA line, I get a visual representation of momentum. Having one long, one medium, and one short moving average allows me to see when the shift from downward momentum to upward momentum occurs.
How is this performed?
Look at the first chart in the image:
Image below:
As of this post, notice the green 200MA line is above the 100MA and 50MA. This is a sign of downward momentum.
Now look at the second chart in the above image:
For the first time since the last run up to .24 cents back in 2012, and the run up to .10 cents back in 2014, the 50MA and 100MA are showing the beginning signs of upward momentum. Unlike the previous 4 years where the 100MA and 50MA have been far below the 200MA (average), we see the 50MA beginning to move closer to the 100MA line; and both the 50MA and 100MA are getting awfully close to the 200MA.
Going back to the first chart:
Although the green 200MA line appears very far away from the 50MA and 100MA lines, remember that this chart is greatly zoomed in and only showing the most recent 6 months. Go back to the second chart and you’ll see how close they actually are to the 200MA.
With all of this in mind, it is important for me to keep an eye on these three MA lines. Once the 50MA and 100MA rise above the 200MA, it will show both strength and direction of SCIE’s momentum. And when this happens, I believe (again, not investment advice), we will have a repeat run; just like what occurred the previous two times the 200MA fell below the 50MA and 100MA.
Note
In fact, just prior to the .10 run up from .02 back in 2014, the three MA lines looked almost exactly like they do right now. Don't take my word for it. Plug the numbers in yourself and take a look. A little over one month after the three MA lines looked like they do today (March 2014), the PPS went from .02 to .10 cents.
Moreover, from what I can find, prior to both runs, the 200MA was above the 50MA and 100MA only a few months prior to the run. This indicates to me the possibility that the chart is setting up for another run; and this time with the possibility of sales, who knows how high it could go.
SpectraSCIENCE Inc. (SCIE) Stock Research Links
http://investorshangout.com/Joeys-Investment-Board-91611/
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