Showing posts from January, 2016

Hoping for some Stock Market bargains...

UPDATE May 2018 - Since writing this post, I've changed my opinion on using technicals to determine entry and exit points.

As you might have noticed, the stock market is throwing its toys out of the pram.

For me, and anyone else sitting in cash / out of stocks, this could represent another buying opportunity...

I'll be following my favourite long-term indicators in a test that I haven't yet had the chance to try out. They work well in back-testing, but we all know that the past is no guide to the future.

Here's a link to a chart of the FTSE100 over the past ~20 years. You should see two trend lines on the FTSE index itself, and another chart of two lines below it.

The red line on the FTSE chart is the 21 week EMA (exponential moving average). This is my "short-term" signal line. The green line is the 144 week EMA. This is my "long-term" signal line.

When the FTSE is high and falls through the 21w EMA, I think nothing of it. When it falls below the 1…