Dark Green = Strong bullish;
Dark Red = Strong bearish;
Light Green = Mild bullish;
Light Purple = Mild bearish.
How to use:
It’s a good idea to glance at these weekly charts to see what the longer term trend is before buying based on the related daily charts. Find the latest daily charts by clicking on my name above, or by copying and pasting the following address in your browser: https://publish.optuma.com/author/fabien-ouellette/
That said, weekly charts should be used if your holding period is several months, and daily charts should be used for holding periods of several weeks. Always try to keep an eye on support and resistance levels along with the FAB Indicator to make your decisions.
If the line chart is DARK GREEN and above recent resistance, it’s safe to buy. Perhaps layer into your target position (a third of your target every day the FAB is dark green);
If Light Green, hold or trim depending on current profit. Light Green often occurs before the Indicator switches to Dark Green – if support and resistance levels agree, layer into your target position as per above;
If Light Purple, hold, but watch support levels closely – perhaps trim profits;
For weekly charts, if the line is DARK RED and below support, sell. You can always get back in.
Have faith in the indicator – it won’t let you down. If it’s dark red, stay away from that market until things settle down. When the indicator returns to light or dark green, you’ll be able to re-enter at a safer price; you might miss the first ~ 5 to 10% up move from the bottom, but you’ll be taking much less risk. Shouldn’t it always be about the risk and reward ratio?