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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Smooth Drive who wrote (9823)	3/9/1999 9:49:00 AM
From: sainte-beuve	Respond to of 12039

Eric: Any suggestions of good books on TA? How about on graph reading? You guys seem to have done a lot of homework - and I have a lot to do! Thanks for any advice (and for all the great posts here)

To: Smooth Drive who wrote (9823)	3/9/1999 10:47:00 AM
From: SteelBlueIce	Read Replies (1) \| Respond to of 12039

bdog and Eric, Still working with the moving averages, macd & fib retracments. I draw a lot less trendlines, that would be the biggest change. It's not that I don't find value in them, just that I feel more comfortable with moving averages and my understanding of them. Also, it keeps it simple. When I zero in, I will throw up a channel or draw a line just to see if my eyes are being friendly or not. I like to flip through charts. I pretty much use scans (Andy is the master of scan writing) to form a database to flip through. I keep the scans complex and the charts very simple. I like to use standard macd and a shorter term macd. Kenny uses 6-14-5, Dave uses 8-17-9, Steve used to use a 4-12-9 a long time ago. I like when the short term macd fast line is below the slow line and the longer term macd is still positive, it can signal an oversold condition in a very strong uptrending stock. Of course, that is a minor consideration and I use it as part of the total confirmation process. AOL 11/13/98 was a nice example, IBM at the beggining of the year would have been a bad example. As the examples illustrate, these are not out and out signals on their own, just nuances. Nothing in TA is gauranteed; even though we are all given the same clues some of us will be better detectives. Another little ditty to look for is when the longer term macd fast line crosses above the slow line ABOVE THE CENTER ZERO LINE. It does whipsaw, (what doesn't) but in strong stocks it will provide a nice pop. AOL great signal 12/18/98, not so great 1/28/99 and 2/23/99. BTW, I do see divergences between PRICE AND THE INDICATOR. Some books talk about divergence between the lines of the macd, I hope that were all on the same page. When a stock is basing, I use the macd rising as a confirmation that I may be thinking the right way. Again, I do not trade divergence, it is one of several confirming indications that may appear.