If you’ve ever wanted an easy way to make money in the stock market, a powerful money-sucking profit stream, then read on…

Money continues to flow into foreign stocks. China is just one country that is benefiting from the flow of money away from U.S. companies.

Why not follow the big money and do this yourself?

Below is the chart of GXC, a Chinese ETF that tracks the performance of 170 publicly traded companies in China.

An Ascending Triangle is forming on the price chart. Ascending Triangle patterns usually resolve to upside breakouts. They are a continuation of the bullish trend pattern.

Think of an Ascending Triangle likes this. Bulls have taken GXC up to the $58 level twice now, while bears are losing the ability to take the ETF back to the $54 level. The Ascending Triangle pattern tells us that the bulls are winning the battle and so that is the group we want to place our bets with.

The volume is beautiful. It has been slowly increasing for four months now as greed causes more traders to pile in the higher GXC goes. This suggests the uptrend will continue.

The +DI line (bulls green line) crossed the -DI line (bears red line) back in March. Notice the blue ADX line. It continues to move higher. This means that the market is trending higher. When the ADX line falls, it means the market is trading. As guerilla traders, we seek to buy high and sell even higher so an uptrending market is key to our hit and run strategy.

The MACD is negative (below the 0 line) but appears to have completed the downward move and is ready to turn back up.

The On Balance Volume (OBV) shows us which crowd, the bulls or the bears, is more enthusiastic. The OBV tells us that bulls are more emotional about their positions going higher than are bears about their positions going lower. We want to trade in the direction of the emotion.

I hope you enjoyed this article. Leave any comments you might have below. Thank you and happy improved trading.

Lance Jepsen
President, GuerillaStockTrading.com
Your Trading Coach
(because everyone, even Tiger Woods, needs a coach)

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