All trading basics

EMAs, Continuation and End

The stocks that had given a medium to long-term buying signal on February 2 performed well overall. Here is the summary table.

  Medium-Term Buy Signals Long-Term Buy Signals
Performed Very Well Not applicable CSR.V,CZ.V, MPQ.V, ICG.V, MIT.V, RLV.V
Neither Positive nor Negative PD.TO, CJC.V BEP/un.TOSEV.TO, NX.V
Sell Signal After Buy Signal ATH.TO, NCA.TO EGT.V, RHT.V, TVI.V

These stocks were listed in the February edition of the D Bulletin. Their performance is rated above.

At the time of their performance analysis on February 27, 2017, we observe that several stocks performed very well and that most performed well. A minority has not moved (neither positive nor negative), and five have given a trend reversal signal between the initial date of February 2 and the final date of February 27: if we had bought these shares at the buy signal (when the EMA7 crossed the EMA27 upwards), we should have sold them as soon as the sell signal was triggered (when the EMA7 crossed the EMA27 downwards) and the loss would have been contained.

The category "performed very well" reflects the spectacular and surprising effect of the rise of the stock after the signal. The prices of stocks in this category, especially small caps (.V), doubled or did even better.

"Performed well" means that the price gained strength and progressed gradually.

This article does not include charts as the reader can use the Disnat the trading platform to easily view them as well as the two exponential moving averages (EMAs).

I will be away from this section for a few issues to finish writing a book on technical analysis with the help of my assistant, Élodie Remaud. We hope this book will help readers succeed in the market.

In an upcoming article, I will delve into the Directional Movement Index (DMI), another excellent indicator based on new tops and bottoms caused by the market while taking volatility into account.