Stochastic, OBV , RSI etc. are only good in choppy sideway moving markets. These indicators are distorted in any other type of market depending on what time criteria you are using as the time average within the indicator. Generally utilizing two( one short term one long term proves to be a more reliable indicator.
There are more tested market indicators looking at the technical side of it.
The works of Fibonacci, Andrews,Gann , Thimble, used in corelation with old standbys as support resistance trend lines and numbers- Elliot wave ,Gann lines and points of coincidence, Williams cycle analysis ,astrological projections etc. will increase your odds.
Problem is - all have all proved an inability to beat the odds consistently utilizing the technical aspects of the market alone. I don't debate that they give a person a logical roadmap for entry and exit points. Used as a sole criteria for trading is a losing proposition in the long run using them as a sole crieteria.
If not - everyone with a chart,compass, calculator and pencil would be rich wouldn't they!. Technical suystems are great money makers for those selling them. For those trading them, not so good. WHy else do con artists like Wells Wilder come up with a new one every month:-)
$5000 turned into 1.5 million in just 30 days ....right!
If you trade using any of the above as a sole criteria in your trading, then you should be buying this stock on a strong close. Also note that DDIM technically broke out to the downside yesterday. It was a false breakout by 1/4 point but did confirm as it closed on its lows.
If you are buying today, then you should have also been a seller yesterday. If not- your not trading technically.
I would advise waiting for a close over the upside resistance for confirmation if you are looking to buy. The more we reach into the apex of the triange the more the formation loses it's power and the greater the liklyhood the insuing breakout will be false followed by a reversal. |
