Another Wildly Exciting Semiconductor Stock

Subscribers will notice that I frequently change the scale on my candlestick charts. This is reflected in how I use charts. I am looking for signals that work, which can appear on charts using different periods for the candle stocks and moving averages. Since, arguably, there is no reason why charts should work we might as well be pragmatic in looking at what does work.

The smileys on the chart above capture the moment when the moving averages began to climb. A simple strategy is to buy/ hold the shares whenever the averages are climbing and be cautious when they are not.

The overall message from the chart, apart from the recent buy signal, is that since late 2008 semiconductor shares have been a good place to invest.