MARKET INDEX TECHNICAL ANALYSIS - MITA Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: J.T. who wrote (5624)	12/16/2000 1:28:33 PM
From: TA Trader	Read Replies (2) of 19219

J.T. The best book that I have read that deals with sentiment indicators and investment discipline is "Trading For A Living" by Dr. Alexander Elder. He has a section on computerized TA including Stochastics, MACD, MA's, Momentum, Williams %R, and RSI and how they are constructed and utilized. He also has 3 main tenets which I attempt to follow closely. They are 1. Understanding that TA is applied social psychology and that chart patterns merely reflect crowd behavior. 2. You must have a sound understanding of the market and a competent trading system which you adhere to. 3. You MUST practice Money Management i.e. Use Stops. Limit your losses and let the profits run. As an example, I took small losses of 2-3 points Thursday and Friday,following my trading system already described, I got in perfectly and took out 12 and 14 points on CHKP & MERQ. I used trailing stops and finally decided to sell when they ran up to fast. When this is happening, and you see a stock pulling too far above your MA's (13 & 28)it's like a rubber band that will come back to normal. Either you take a profit or someone else will. I am still holding EMLX as I bought it when it was off 15 pts. and is therefore not at all extended. A point there is understanding the market and that stocks also have gaps that must be filled. I watched EMLX as if it was "hell bent" to come down and finally fill that gap before reversing. This is the toughest market that any of us have ever seen and therefore our time horizon has to be very short and our money management discipline totally in control. The unexpected is everywhere and they will continue. i.e. Is IBM next? Next week, I will look to buy early weakness as I expect some short covering before Tuesday's FOMC meeting. We would all love to see a rate cut but most likely we will see a Fed moving "bias toward ease" or I pray we do. Stay Loose and Stay Tight! WHAT A COUNTRY!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next