A failure trade happened on 2009-10-12.

I made a sold on 1.46975 on 10-12 since a trap in RSI (blue line crossed green line and going to cross red line on 10-09, but not crossed actually). Also a trap in Stoch RSI (blue line was going to across red line, but not crossed actually on 10-09).

 

If at that time, i could analyze other Technology charts and made a careful comparation,

such failure trade should not be happened.

 

In daily charts, for example,

1. In MACD, red lines' trend is going up.

2. In MACD Histogram, red line was going to cross blue line (golden cross). It means trend is gong up.

3. In Stoch RSI, even tough it was showing potential cross on 10-09. First, it did not actualy cross.

Second, the cross happened between +75 and + 25 could be a weak cross, it is not able to change trend's direction. 

So, trend should keep on going up.

4. RSI chart made a main trap for me at this time. Since on 10-09, i found blue line has crossed green line, and it

was going to cross red line. So, I made a sold trade on 10-12. 

However, if we analyzed RSI charts in its history data, we would find that RSI blue line always makes three tries (or called traps)

to cross green line but not cross red line before trend finally changed direction from up to down trend (It means blue line corssing green line then red line finally.)

 

In RSI chart, if trend going to turn its direction from bull market (up) to bear market (down),

It must be position of blue line upper then green line, green line upper than red line. Movement must be

1.  Blue line crosses green line first. 

2.  Blue line crosses red line second.

3.  Green line crosses red line third.

4.  After finished trend direction change, It must be position of red line upper than green line, green line upper than blue line.

5.  After direction turning movement finished, the trend would continue going down, or another reversion would happen (down to up).

 

  

As for CCI, the first two tops on Oct are showing bull (up) trend. On Oct 09, event tough CCI is going down, but

it hasn't generated third top on that day. So, we cannot make decision hurry on Oct 12.

 

For CCI chart, most useful things is Tops which is closing one by one.  Since depending on a direct line linking two tops,

we could easily find whether it has departure (背离） in current trend's movement. 

Thus we would know whether current movement is over sold or over buy.

 

 

 

 

MACD with Histogram.