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Strategies & Market Trends : Let's Talk Technical Analyisis (TA) -- Ignore unavailable to you. Want to Upgrade?

To: cheapbastud who wrote (33)	11/10/2001 7:09:19 PM
From: LemonFlavor	Respond to of 178

Since nobody answered you yet I thought I would give it a shot. Read the classic Technical Analysis of Stock Trends by Edwards and Magee. Forget about indicators, at least for now. Learn the basics of technical analysis, price and volume. This may be all you need. If you want to read about indicators you can add that later. The latest is the 8th edition but you can buy older editions at places like half.com.

To: cheapbastud who wrote (33)	11/10/2001 7:32:40 PM
From: Nazbuster	Read Replies (1) \| Respond to of 178

All of the indicators are just designed to create a visual interpretation of changing statistics. Imagine a stock that has a higher close every day for 7 days, but where the close is lower and lower within the daily range every day and the volume is diminishing each day. That stock would be VERY different from one with exactly the same Hi-Low daily pattern, but where volume was picking up and the closes were more to the upper end of the day's range. Things like Stochastic, MACD, RSI, Momentum, etc. are all designed to let you see these kinds of signals visually. You still need to be able to put that stock's behavior in the context of current news, sector behavior, and overall market sentiment. Also, fundamentals count.