Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Grover who wrote (3858)	11/10/1997 1:16:00 PM
From: Chris	Read Replies (2) \| Respond to of 42787

hi Jeff, how's it going?? just watching the market and job hunting.. nothing much going on.. started subscribing to the S&C magazine and bought the CD-rom for past issues.. i also went to the bookstore and bought Fibonacchi strategies for trading.. (something like that)... WAY over my head ;)))) but i got something out of it.. (going to return it and get an easier book) <g> So.. I'm just studying. as for the mkt, i would be bullish if it broke above the 50 day MA (for the djia).. until then, only day or short-term trades to grab profits here and there.. I'm also working on a webpage to make researching stocks easier. using a stage by stage critieria.. it'll take awhile. im still in the design/planning stage.. I'm also researching into finding how to do sector rotation. Looking at IBD industry rankings and stuff.. and how i may use them to my advantage.. There was a great NOVEMBER issue of S&C talking about FIBS and WEEKLY REVERSALS.. i've got the coding into metastock format, so that there are more arrows and symbols ;))) i got more and more templates now... again, trying to shift through the pile of indicators and picking out the ones i like.. endless process.. you know how it is <g> see ya Chris

To: Jeff Grover who wrote (3858)	11/10/1997 1:19:00 PM
From: Robert Graham	Respond to of 42787

I am unclear though as to your view on how this technique may compare to some other indicators (OBV, Chaikin, Acc/Dist). Tape reading IMO is essential for the trader. IMO TA helps you identify the "leanings" of a stock and when it breaks out, the "likelihood" of the momentum continuing. Tape reading tells you what is actually happening, which in itself has predictave value for the trader. Here you can see for instance where the big money is moving, particularily in relationship to breaks and bounces. You also can identify if for instance a rally is the result of "good money", which is the money that will have its impact on the stock longer than a few hours. Tape reading is great to determine the intraday entry and exit points, better than TA can at this level. Tape Reading also suppliments TA by validating or invalidating what the charts are telling you. You can tell alot about the players in a stock be watching the tape. After all, it is those players that have a direct impact on the price of the stock. OBV, Acc/Dist is an attempt at identifying if there is a net move by money in or out of thte stock. It works alot of the time. However, the end of day result can mask alot of what actually happened during that day. The tape is the only tool that will tell you what is actually happening through the day, which is a picture of the net acummulation or distribution, and much more. The tape for instance can help you identify the careful selling of stock by large interests. So the "good" (smart) money can strategically be exiting the stock, and doing this in such a way where you cannot tell this by the end of day stats, and even by the OBV and Acc/Dist indicators. However, the end result can very well be that the "other" (not so smart) money in the stock exiting, which will show up on those indicators. So in this case, not only can you validate what your indicators are telling you, but even fortell what your indicators like OBV and Acc/Dist will be telling you. There can be "head fakes" by the MM or by operators that want to trigger stops and start a very short term trend, such as what the locals on the floor do. You can see their "footprint" on the tape. I hope this helps. Bob Graham