Berney; RE:" pay more attention to the weekly charts..."
I agree completely with you, Berney - I focus upon them a great deal. The monthly's are not so useful on TechStocks (exponential growth, requires log chart) But I do look at them, too. I tend to work with Weekly and w-a-y on down to the intra-day, oddly enough.
Recently I have begun to go back to basics and I am using simple line weekly charts, (closing prices) upon which I draw Trend Lines and Horizontal Supports; Very useful for me. I sent you a batch by E*MAIL to look at. Line charts tend to remove a lot of volatility and other clutter. Work exceptionally well with ADR's, which have "choppy" charts with many gaps because of the overseas market effects.
Candlesticks are an indicator of immediate sentiment and they are quite useful in this regard - and somewhat fascinating.
But frankly I do not do a lot of T/A. I choose stocks based upon F/A and time entry points ( and now I select exits - I was a buy-and-hold investor until this year! ) and in the past I simply worked with the bellwethers MSFT INTC AMAT DELL QNTM CSCO and bought them on "dips" and rode 'em up. That was the Bull Market way I always did things, before Tech Wreck '97.
Despite knowing that INTCW could lose support at ~70, I never thought it would be back to ~50 (my entry point) again. Fortunately, I sold a lot of stuff on the way down, here and there. But I didn't see it coming, as it did. Lesson Learned !
-Steve |
