Hi Cush,
Interesting thread:) BTW this post is long…
I am a novice @ TA. Somehow, I have blundered my way through good trades & bad, (both intra-day & short-term/long-term) over the past 4 or 5 years.
For example, I have been a "bag holder" of BAY since it peaked this time last year. (The only reason I keep holding it, is because I "think" that the fundamentals are compelling. <BWTHDIK>
Nevertheless, of course, Bay has been "DEAD" money for over a year. (Money that I could have used in that once in a lifetime run-up on the NASDAQ)
Before Bay, I made most of my working capital off of BII. In retrospect, I was extremely lucky with BII. (I got in & got out @ pretty good levels. By that time, I was a regular lurker, reading the Day trading thread (WOW, it seems so long ago...) At one point, the Chief gave a heads up to the BII thread that he had sold ALL of his shares (both L/T & S/T).
I was amazed!
I thought @ that time that you were supposed to hang on to your shares for the long term... so when the Chief announced that he had sold I remember quite clearly that he took a lot of abuse from various posters & was praised by others... & I had trouble understanding why…
Even though BII happened a long, long time ago, I am indebted to the Chief for helping a complete novice navigate some treacherous waters successfully.
So, from that day on, I decided to tackle technical analysis in the market. Believe it or not, I was for some reason, drawn to point & figure charting. I think because other then candlesticks it is the oldest form of charting used in the market. Of course the problem with P&F is that it is trending indicator (it ignores time & volume) & you can be easily whipsawed (esp. in this market!).
Pdg chart
stockcharts.com[L,A]DACAYYMY[PB5!B10!B200!D20,2!H.02,.20!F][VC60][IUL14!LC20!LD20!LE12,26,9!LF]
P&F PDG chart
stockcharts.com
Post from Atin (he created the classic P&F charts for Stockcharts).
Message 14672286
Message 14172252
John Murphy has a chapter on P&F in his book on 'Technical Analysis in Financial Markets'.
Finally, something I have recently (the last 4 or 5 months) been working on is trying to decipher ADX signals, firstly to determine if we are in a trending market & then waiting for confirmation of the D1+ line to cross over the ADX line & if it gains strength. So far I have found that ADX gives a pretty good indication of when I should use an oscillator or a trend indicator. (However, I still use P&F to confirm support, resistance, and bull or bear (longer-term) trends.
Since your thread is a lot shorter than the Day trading tread, <g>... I will read it through & will post some selections towards the end of the weekend.
Regards,
Peter
BTW, Shack; it is a pleasure to meet you here... thanks for the heads up on various stocks last week & your support.
Regards,
Peter |
