Gary Baggs was good enough to give me a hint for improving my young TA skills. It involves superimposing Stochastics of RSI of varying periods. What basically happens is that when the 4 lines meet a sharp reaction occurs in the price. Its graph, w/price, when it hits, is stunning.
I noticed this convergence on a stock I looked @ for a friend (SCLN), It showed up last week, so I thought I could squeeze a little out of the ensuing price move this week. It receded today, but I was unable to get in anyway; a free lesson. Gary also guided me further as his post subsequent to yours stated...although the above convergence is very telling, the "macro" trend must be taken into consideration to determine the strength of the move.
Re: a similar event on BCMD last week, I think Gary kinda covered that also. The convergence was close but no go(which explains lack of action over past few days), but running deeper to that is the overall trend in BCMD which is still down. I've suspected that the TA community is gregarious, gracious, and giving. They have proved it so far beyond a doubt. Gary is a great ambassador, and is saving me much time. Since I respect his success, his advice sinks in quicker. |
