| JEFFRY TURNMIRE
Looking At Stocks Like A Rollercoaster
Have you ever watched a roller coaster go up and down and around? The way it zips back and forth is truly exciting.
But sometimes, there's a hill so steep that it causes the rollercoaster to lose a lot of speed… just as it's approaching the top of the hill.
It almost looks like it's about to fully lose steam and start going back down the way it came.
Now, of course with a rollercoaster, this never happens.
But if you keep this example in mind, it is very useful for helping to explain a new tool I'm releasing as a beta test.
Because the way this tool looks for potential stock trend reversals is similar to how you can see the rollercoaster losing steam as it gets to the top of a big hill.
The tool is called the Volume Velocity Divergence Indicator (VVD) — and yes, I know it sounds complicated.
But at its core, it’s a technical analysis indicator that uses price and volume data to identify potential reversal points in the market.
Because just like a rollercoaster losing speed as it gets to the top of a hill…
Stocks that are trending tend to do the same kind of thing before they change direction.
And when my indicator spots the telltale signs of a reversal, that’s when it signals an alert.
Here’s a breakdown of how it works:
The VVD indicator looks at how much the price of a stock goes up or down and how much trading volume there is when that movement happens.
If the price goes up a lot but the trading volume doesn't go up much, that's a bullish divergence. This means that the buying pressure is getting weaker, which could signal a potential reversal.
And it works in the opposite direction, too:
If the price goes down a lot but the trading volume doesn't go down much, that's a bearish divergence. This means that the selling pressure is getting weaker, which could also signal a potential reversal.
Those are just the basics. There’s a whole lot of technical stuff going on in the background, including checks and balances to reduce false signals.
If you want to learn all about it, I’m giving out all the details tomorrow, Friday July 21st @ 1pm Eastern.
If you’ve been trend trading — or even just selling options against trending stocks — you’re going to want to have a tool that shows you when that trend could be reversing… So you can get out of the way when that roller coaster starts heading backwards down the hill!
Click here to reserve your spot and join me tomorrow, Friday at 1pm Eastern.
Hope to see you there,
— Jeffry Turnmire | | | | |
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