EXPLANATION
The dots are weekly close. There are five trading days in a week. 2 dots are the same as 10 days. The 2 MA - the black - has the same strength as a 10 day MA. 5 dots are 25 days and makes the 5 MA - the read one. A cross between 2 and 5 MA is a powerful sell signal on a daily chart. The same as a cross between a 10 and a 25 daily MA:s. Finally the 8 MA - the blue - is 40 trading days. As soon as the black 2 MA changes direction a new trend has started. A cross between 2 and 5 MA is a technical sell signal. A lot more could be said but you will learn. Example: 1) See SWED where I have drawn lines between the tops and bottoms of the black 2 MA. Now you see that it is a megaphone picture which means that SWED will most likely go down to the falling bottom line as soon as the top is ready. 2) Watch any chart and see how the trend continues as soon as only the black 2 hr MA has changed direction. 3) DOW is a very vulnerable chart and risk for downside big within a week or two because the 8 MA will likely start falling after today's - Fridays - close with a new dot next Monday or the Monday after unless a very strong uptrend suddenly starts.
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