10/07/2012

SWED use to show the way for all big trend changes.This chart is weekly with only closes to explain more about the theory in the blogs below.

The black dots are the weekly closing points during 56 weeks. Here you see the rising 8 MA and the falling 21 MA. For 5 weeks the 8 MA will likely rise and for 7 weeks the 21 MA will probably fall. Until the MA's cross or the 8 MA turns down before cross the closing points will most likely come in between these MA's. Before that happens we can see if a cross will come or not. If the 8 MA turns down after a few weeks without first crossing the 21 MA there will be a very strong fall and a long down trend. This is one example of how I use to see the next big move in advance but often together with other indicators. 

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