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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: SpongeBrain who wrote (2531)	1/3/1999 7:29:00 AM
From: Dr. Stoxx	Respond to of 39683

Dan, Thanks for your first time post to Befriend the Trend Trading. Yes, Elder's book is an excellent place to start your education in TA. I have just finished it, and profited greatly. It reminded me again how important MACD is (I used to use it, dropped it, but am now using it again as a result). And its chapter on trendlines is worth the price of the book alone. There are also several free sites on the Internet that offer TA tutorials. Type in technical analysis in Yahoo and you'll find them. Several signals generate entries and exits. Probably the most commonly used is Stochastics, but as we are learning on the this thread, there are several ways to read them, and use them. The most powerful concept in determining whether a trade is feasible is divergence: between the price of the stock and the indicator you are using. Convergence signals status quo, but divergence signals a reversal in the trend or trading range, and that is when you want to jump in/out. Elder speaks at length about this, and I refer you to his book. There are several posts on this thread that deal with the BTTT method, but I'm not quite sure what their numbers are. As for KLAC, post me a link to timely.com and I'll have a look at it. Good luck, TC.