FireCharts.com Read Me

	FireCharts.com Information
	Welcome to FireCharts.com Users Group http://groups.yahoo.com/group/FireCharts FireCharts are simple to create: Type a stock symbol and click "GO." Note: There will be a RED diamond in the bottom left corner indicating when you should be on the Web. It will turn GREEN when the stock data is loaded and it is safe to get off the Web. (You don't have to get off the Web if you don't want to) Besides drawing topographic stock charts FireCharts has several useful utilities: 1) Angular Wave Price Alerts - Instead of setting price alerts only on the horizontal you can now set price alerts that follow the waves so each day the trigger price to buy or sell is different. You can be notified by an audio alert when a price wave is hit on either the buy or sell side. 2) Triangulate Prices - You can now right click on three points (peaks middle or lows) on a chart and it will display likely points of triangulation. These are sometimes related to significant turning points. 3) Your Personal Web Links - You can now have YOUR favorite web links on a drop-down menu within the program and your web page will always be looking at the stock you are interested in without having to type the stock symbol for each web address. 4) Real-Time Quotes Charted - While you are on-line FireCharts will add the most current RTQ every time you re-draw the chart so you don't have to re-build the chart from scratch every time. For more Help click the menu 'Help' tab and then 'Use Popup Hints' tab. The best advice is to "Go with the flow." That is to say, go in the same direction as the majority of waves. "Waves" are the yellow lines on the red background most likely forming a "<" pattern. If the price hits a Wave you may want to get out and take your profits or at least suspect that the market may go in the opposite direction. Look at the overall direction of the Waves that the price is riding in and anticipate the market to continue in that direction. Longer Waves tend to have more power than shorter Waves. Horizontal Waves tend to have more power than angled Waves. Thicker Waves tend to have more power than thinner Waves. Brighter (Higher) Waves tend to have more power than dimmer (Lower) Waves. Usually two Waves stand out above the rest. They are the upward sloping Wave (made mostly by the BULLS) and the downward sloping Wave (made mostly by the BEARS). Together these two Waves create a sideways "A" that may look like a "less-than" sign "<". The price tends to stays within the "A" Waves. Larger <'s tend to have more power than smaller <'s. Wider <'s tend to have more power than narrower <'s. The side of the < with the most Waves tends to have more pull. <'s tend to point in the direction of the market. Waves that project out from the middle of a price move tend to be strong. Waves that cross each other tend to be quite strong and can be divided into 3 components, (1)-start crossing, (2)-middle crossing, and (3)-end crossing. Middle crossing tends to be a good indication of the free flow direction of the market. The start and/or end crossing tend to have a strong pull. Shock Waves (A-Waves so strong that they change the color inside them) tend to occurr at higher levels in up markets and lower levels in down markets. The Theory behind FireCharts: Suppose you as an investor were to chart a path where you thought the stock market was going to be over the next say 30 days, and then asked a fellow investor to do the same, and then asked every investor to do the same. If you then compared all the charts, you would find that everyone drew a different chart and none of them matched, not even yours. But suppose you were to lay all the charts over each other and were able to see what they all had in common... that is the goal of FireCharts. FireCharts assumes that all these investors will be making future investment decisions based on the lines that they drew. Armed with this information you may anticipate their moves. FireCharts is a new charting and forecasting method far better than moving averages, Oscillators, or whatever chart patterns you can find anywhere that are drawn after the fact. I'm sure you have seen analysts connect dots or point to price peaks and bottoms after the fact only to have their pattern disappear a day later. FireCharts shows you key resistance and support lines the day they are created and project them into the future. As computers become faster this type of technical analysis will become the standard. =============================== ================= ======== === = An Example of how it is used: You will want to first set an alert. When the alert is hit then you can then transfer it over to the portfolio. Below is a simple pattern example you can use to paper trade today. To set a BUY alert: First draw the charts (QQQ then click 'GO') then find one that has a wave that is well defined and prices are bouncing off of it and if possible find a wave that appears in the same location in more than one chart. Next go to the 'Wave Alerts' page and double click on the grid and then click on 'New'. It should take you to the chart with the wave you want to Alert on. BUY waves are support waves and can be found below the current price. The price action should be bouncing on the top of this wave and in general making higher highs and higher lows. Right Click on the left side of the wave (you should line up the dotted line with the wave) and then Right Click on the right side of the wave. That is it. The Alert is now set so click on the 'Update Alert' button on the 'Wave Alerts' page to see if the Alert was hit. If the Alert is hit it will say BUY and give you the option to move it over to your Portfolio. You are now in the trade. You now need a way to exit the trade. Set a profit SELL Alert just below the next wave that is above the current price. This will ensure that you take a profit if it moves in your direction. However, let the trade run unprotected on the down side for 3 days (to shake out the weak hands). If at any time the trade goes positive set a protective profit stop (never give back a profit) for example if the stock goes up 5% you should lock in 1% (after costs) for your self. Always turn the trade into a no risk trade as soon as possible. If after the 3rd day you are in a loss position then set a stop loss UNDER the next wave that is below the current price. The stock will have a hard time pressing below that lower wave in order to hit your stop. Be quick to jump the stop up to grab any profitable position. A 1% gain every week will result in 52% yearly profit. Once you have locked in your 1% no risk stop don't move it up any higher, just let the stock run up and hit your profit stop that should be located just below the next wave above the current price. Simply by setting your stop loss below a support wave and setting your profit stop below a resistance wave you become like the House in Vegas where the numbers are automatically in your favor. You can then increase your odds by creating no risk profits and picking support waves that show up on several charts and are sloping upwards. You can also hidge or smooth your portfolio by setting half your positions as buys and the other half as sells. Good Luck and Make Some Money! =============================== ================= ======== === =