Here is a 1 minute chart for Apple Inc, symbol (AAPL). When trading stocks most traders only want to buy long so in this blog I am going to show how to buy bottoms on the 1 minute chart using the MarketWarrior indicators named Smoothed Stochastic and Regression Line.
The red line in the main chart area is the Regression Line. The blue line in the sub chart is the Smoothed Stochastic. To find a good buy opportunity on the 1 minute chart we want to see the Smoothed Stochastic move down below 1.0 and as close to zero as possible. We also want to make sure the prices are not on top the Regression Line. The price should be below the Regression Line and the farther the better.
On the Chart below at letter A, the Smoothed Stochastic was below 1.0 and the price was below the Regression Line. This shows a good setup indicating a buy signal. At letter B the same setup has occurred. This shows another buy signal.
The letter B on the chart below is the same as seen on the previous chart. The letter C shows us a third buy signal. The Smoothed Stochastic was below 1.0 and the price was below the Regression Line. The situation at D is not a buy signal because the price was on the Regression Line when the Smoothed Stochastic first fell below 1.0. The price did fall below the Regression Line while the Smoothed Stochastic was still below 1.0 but I would not consider this to be a buy signal.