Weekly Lessons


March 10, 2019

CONVICTION/ODDS with Overlays and Indicators.

I will teach you now what most don’t dare to let you know. You are all familiar with a price chart?YES! So para simple ganito.
‘Overlays’ displayed over the main price chart.

‘Indicators’ as separate charts below the main price chart.

Sample ng mga overlays are bollinger band, Ichimoku, Moving averages, Parabolic SAR….Basta lahat na pwede mo maplot sa area kung nasaan ang candles overlay yun. May mga charts or software na pwede mo eh overlay ang indicators pero let us stick sa common sa PSE charts. Magkahiwalay ang overlays sa indicators. Now there will be a lot of smart people na magasabi na Indicators represent a statistical approach to technical analysis as opposed to a subjective approach. Well, let them say what they want. Lahat naman yan nag indicate ng something so lahat indicators yan malamang sasabihin ng ilan. Okay.

Again, let them. What matters is you and me and what point I will drive today. So clear na sa overlays at indicators. Ok now sa pinupunto ko. Let us take for example ang VUL. Plot natin ALMA as overlay.
So alam nyo na basic sa alma. Buy kapag nabreak ang alma as resistance. Sell kapag nabreak ang alma as support. But buying alma every time mbreak ang resistance don’t produce same good result. Hit or miss ka. So paano natin dadagdagan ang conviction na tama ang entry?Paano natin dadagdagan ang odds sa favor natin?

By adding an indicator…
I hope this helps. Thanks.

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