Pheonix: (Formation Charting) - I trust the link will help. I often run across individuals that have taken formation charting to a new level, “there own”. They often come up with formations that do not exist and becoming very creative in how they draw trend lines. Since it seems to work on occasion, validity is attached. However, it becomes more of a way to validate a gut feel, than true formation charting. I must admit, some folks have pretty good gut feels. But hey, if a stock is sideways trending, how hard can it be, to pick the next day trading range?
I have been investing for myself since mid 1986 and have been doing technical analysis just as long. I think that web page I provided the link too, is just about all you need to know too effectively recognized formations. Experience is the next ingredient.
At that site, there is both analysis and examples of each of the basics. Pay close attention to the examples and stick with the basics and you will be safe. Remember formation charting is not 100%, but does portend breaks to the norm. And, often there is NO formation!
Note: The big boys know about formations and on occasion use them to suit their own purposes!
chartpatterns.com
(EGGS) - I took my three portfolios to cash in mid July. (My retirement, my wife's 2 retirements and our main portfolio.) Preservation of capital is primary. I daytrade a percentage of our main portfolio. I have taken few position trades since July and none on "internut" stocks. I know I have left some money on the table because of this, but I have also saved some. I don't like the surprises at the open, which often happens with pure momentum plays.
I do not often post my trades, nor do I usually give advice on individual stocks. EGGS has been just about the only “eggsception”. I usually just lurk the threads of stocks I am interested in and or trading, for additional info.
About the only places I post on a regular basis are the TSO and BK threads regarding Market direction. TSO is where I post most often and that is where I posted the DOW Bull Flag information. I usually bounce it off Donald Sew for his feed back. I prefer feed back as I know "what I think" and always appreciate feedback both pro and con. Pro helps confirm and con forces me to rethink. But, I always want it coupled with analysis. Gut feels are fine on occasion, but analysis both TA and FA are preferred.
Oh yes, I most likely will go long on EGGS next move up! But I move my funds around and may get caught with them invested somewhere else.
Sorry, I just realized how long winded this response is. I have been spending about 12 to 16 hours a day at my trading desk and my neck has cramped up for the last week. So, I am having problems sleeping at night and that is why I am up at this hour.
Good luck trading.
Regards,
LG |
