Dwane, Just a little helpful advice to the person just starting to try and understand technical analysis. Focus on the chart patterns, they are what tell the true story. Many TA indicators, like MACD, RSI, MF, generate a lot of noise which is useless. I think you will discover that there are only a few stocks which seem to respond to technicals on any sort of a consistent basis. Spot the chart patterns first, then control your analysis with the indicators. You will find that as you practice, you will learn to identify areas of support and resistance and blowoff tops and bottoms. Learning to spot those four things will serve you far better than trying to interpret the noises generated by indicators.
It is also useful to compare your finding with others to gain further insight to the art. Rember though, Technical Analysis is an ART!, not a science and like a picture tells a 1000 stories, so too does a chart.
Best of Luck,
Wayde. |
