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Maple Leaf Green World inc. is another marijuana stock that has begun it’s bounce off the bottoms and is being noticed now. If you zoom out on the chart just a little bit you will see that prior to its current uptrend it is now in, it was stuck in a downtrend for a prolonged period. Perhaps people catching wind that this is another California play is in part the reason why it is doing well, regardless that will be your due diligence to find out through other means, for now we are going to discuss this chart and what to look for. In today's lesson, we will look at Price Channels. Although they do seem to look similar to the bollinger bands at a glance there are some differences.
Price channels are derived from the changes within the high to low range of a given period whereas Bollinger Bands are displaying changes in the moving average and volatility. So in a sense the price channels is technically closer related to the stochastic oscillator. Like most things in life there is more to this than can explained here as I know you want me to cut to the chase and tell you how to use it. Fine, let’s do just that. I am sure those of you that are still curious to go in depth furter have figured out how the internet works or how to find a library. So here we go. Think Of the top line as the overbought line, whereas the bottom line would be the oversold line. If you go back in time and check this you will see it is rather accurate as describing so. This is beneficial to help you gauge when a more opportune time would be to enter or exit a position. However one other thing to note for Price Channels is that when the price surges beyond the extremes then this may very well be the start of a new uptrend or an aggressive uptrend as in the case of Maple Leaf Green World. So the next time you are flipping through the channels make sure to check the price channels to see if the gains are on.
Maple Leaf Green World inc.
(OTC: MGWFF)
Note: The chart uses OTC: MGWFF - this is the same company