Before you continue, always remember that the market is very venerable to new releases and players changing the market. This technique is a great way of predicting the market, but it is still risky due to the markets venerability.

 

 

 

Hi,

 

this is a quick tutorial on how to read price graphs and use the information you get to make a successful investment.

 

 

 

The first thing you need to find is a graph that has a fair amount of waves. I used the Dark Bow graph as an example.

 

 

 

 

 

 

I have circled all of the important points in red.

 

 

 

[hide=How to predict a price rise]This is the easiest way to predict a price rise. It is used by proffessional stock brokers.

 

 

 

Notice how every time the Daily Average (DA) moves upwards over the 5 Day Average (5DA) the price rises afterwards. This is the best way to predict a price rise. Notice at the end of the graph that the lines are about to cross over again, i noticed this and bought two dark bows. They have already risen by around 4.5k (Not much, but that was about 2 hours after i bought them, they should rise to make a decent profit of around 200k overall).

 

 

 

To clarify:

 

When the DA moves upwards over the 5DA there will be a price rise. You should invest in the item.[/hide]

 

 

 

[hide=How to predict a price drop]This is how you know when to sell the item you have invested in.

 

 

 

This is basically the same as the technique above, but there is a small yet extremely important difference. You want to sell when the DA crosses the 5DA downwards. As this predicts the end of the rise. It may have already dropped, but this is a sure sign that the price rise will not rise any more. The item may go on to rise again, and if this happens, you will see another cross over.

 

 

 

 

 

To clarify:

 

When the DA moves downwards over the 5DA there will be a price drop. You should sell the item.[/hide]

 

 

 

[hide=An Example]This is a graph with labelled buy and sell points, to give you an idea.

 

[/hide]

 

 

 

[hide=Different technique, make millions in your sleep]This technique is MUCH more simple, but only really works at night. Just before you go to bed, buy a large amount of an item (I love to do this with whips and saradomin swords) for 11k above minimum price. Overnight there will be numerous people that just want to get rid of the item quickly, they will sell it for minimum price. Most people will add 10k to their price to get these kind of buys quicker than everyone else. By offering 11k you bump theres off the list by 1k, so you are fairly likely to get the item for around minimum price. I buy 5 whips a night with this technnique, i make about 120k per whip, so i make a whopping 600k in my sleep. Mixed with the other technique, i can make up to 1m a night.[/hide]

 

 

 

 

 

[hide=Extra Tips]-Do not put all of your money into this technique. Put no more than what you can afford to lose into this.

 

-If the 5DA is dropping at the same rate as the DA, you should sell, as the lines may never cross, and the item will probably lose you money.

 

-The higher the value of the item, the more risk, but the more profit. It is the same if you are buying a large quantity of a cheap item.[/hide]

 

 

 

I hope this guide helps!

There's something I've never understood. What are the differences between the different Daily Average lines?

They average out the price change over 1 day, 5 days and 20 days. So you have a wider range of info.

So it means that, for example, on July 20, the 5DA price is the average for all the prices between 15 and 20 of july?

Exactly =]

Wonderful tip - simple.

 

 

 

The G.E. is soooo easy to make money with, especially with graphs like this. It boggles my mind how people can complain that merchanting is dead.

 

 

 

This is merchanting - buying items for the sole purpose of reselling them at a higher price without ever using them.

 

 

 

:-D

Great guide; it made me understand what I thought was complicated. Might try this. It sounds like you are making a fair amount of money from this. Has your prediction every been wrong and you've made a loss? Please answer. :)

 

 

 

- Rem.

 

:

There is the odd occassion where the 5 day average drops at the same rate as the daily, even for 1 day and it can make you miss the sell signal and loose money. But that is VERY rare.

 

 

 

Thanks for the feedback.

Thank you, I know understand how to merchant using the GE =) But... If more and more people continue to read this and learn would this be ruined or would the economy become better?

It wouldn't ruin the economy, or help it all that much; it will simply make it more difficult to use this method.

Was looking, and found a few items where the daily average has just crossed over the 5 day one.

 

Does that mean, buy a few of these items and I should profit?

Spend as much money as you can afford to lose on it.

 

 

 

Is this what you're talking about? I just bought 10 obby shields incase it was lol.. well they are buying in ge atm

Thanks for sharing:)

 

 

 

Is this what you're talking about? I just bought 10 obby shields incase it was lol.. well they are buying in ge atm

 

I bought 10 last night too. Good find =] I noticed this like 5 mins after i made the thread rofl :P

 

 

 

Just buying anoter 20...9m spent on them rofl.

Found obby shields too :thumbsup:

 

Also, looked on the dark bow graph and they only went even more down :ohnoes:

 

So I guess it is better to pick items which are generally going up than down.

 

 

 

Is this what you're talking about? I just bought 10 obby shields incase it was lol.. well they are buying in ge atm

 

I bought 10 last night too. Good find =] I noticed this like 5 mins after i made the thread rofl :P

 

 

 

Just buying anoter 20...9m spent on them rofl.

 

 

 

Do you buy them for max price or what?

im going to try this. Just not really got alot of money for it. I have 1m but that doesn't seem to be enough. I put on in for a guthix kitesheild at about 20k below market price and im going to sell it for higher. Do you think it is better to buy lots of 100k items or just one for about 400k ?

so then its now a good moment to buy a guthans set

Thank you so much for explaining that...is there any items that are good to buy\sell in f2p constantly or does it depend?

Thanks very much for explaining, but what is the best way to find items in the database? Just general browsing?

i tend to look for items in my price range, which is 1m-5m (Thats the one i usually use, but im moving up one soon). As the more expensive the item the more profit (And it's easier to sell 1 expensive item than a lot of cheap items).

(And it's easier to sell 1 expensive item than a lot of cheap items).

 

 

 

thx guthix it is ^^

I Should do that......

I am sorry but your buy and sell times are TERRIBLE. Seriously, you are telling people to buy and sell at the opposite times they should pretty much.

 

 

 

Using your example:

 

 

 

 

On July 24th you will notice the price isnt dropping nearly as much as the previous day, you should buy then, because you will still be able to get the item for under market price and the next day they will begin to go up (Not buy on the 26th as you suggested.)

 

 

 

On July 28th you notice that it doesnt go up as much as the 2 previous days. Sell your item above mid price then, because the next night it will most likely drop below mid price.

 

 

 

This method works for every wave cycle. Your buy and sell dates should be the following:

 

 

 

July 24th - Buy

 

July 28th - Sell

 

August 2nd - Buy

 

August 4th - Sell

 

 

 

Only August 13th you suggest to buy an item that has a stable line going very slowely down, that is a terrible suggestion.