for more information about stanelco click on the links.

driver's research page link
http://www.moneyam.com/InvestorsRoom/posts.php?tid=7681#lastread
website link
http://www.stanelco.co.uk/index.htm

dclinton, please could you explain what you mean by "a triangle pattern forming"? i like to learn new things, thats all.
keith thomas, seo and chr are worlds apart. chr , good company thats moving slowly but nicely upwards(i hold from many years ago . i dont expect to see my stake for a few years yet!!!). seo, on the verge of a seriously profitable journey. as driver says, get your timing right and you are smiling , get it wrong and ..........

keith thomas
Sorry I may of been a bit harsh but I am the one who sold Next for 300p, my Rage software, ennigis, Redstone/T, all went down the pan so we have all been there.
Off to work have a good day..

morning all.plenty snow outside. looks lovely.

drizzle is surrey - grey & horrid

bosley - it's a bit of technical analysis and a very common chart pattern.

Look at the daily chart over the past week and what you see are a series of higher lows and lower highs. Draw lines along the peaks and troughs and you will see that they converge, forming a triangle shape.

What this indicates is that the buyers and sellers are gradually coming into balance. However, the theory is that this balance can't be maintained and at some point the price will break out of the triangle. When that happens it frequently moves sharply in the direction of the breakout.

However, sometimes you get a false breakout and the price then moves back the other direction. The main point is that whichever way the eventual move is, it is usually quite significant.

Of course, this is technical analysis and really only talks about probabilities, so there is no certainty about the outcome. I suggest reading the FT's "Investor's guide to charting" by Alistair Blair as a starting point. There are then any number of other books devoted to the subject.

Personally, I used to rely heavily on Technical Analysis (TA) but since I started investing based on fundamentals my portfolio has done a lot better. Not to say TA doesn't work, just that my mentality seems better suited to fundamental analysis.

doug

dclinton

thanks for the info re TA: i have always wondered about that graph.

BTW: can you recommend any material either internet based or papertype which outlines the differences in charts and how to read them?

Cheers

Moving up on thin volumes - just posted this really to keep it on the front page

Driver
You sent a shiver down my spine at the mention of energis.....If you want some shares in that "wonderful" business i have a draw full of the worthless bits of paper, make me an offer ! HOWLLLLLLLLLLLLLL

Nice to see a tick up today again, Roll on the news from asda. Thought it come late ladst night, only to find it was a further (small) issue for a retiring employee :-(((
Be lucky

Sticking my oar in again.


Triangles are basically formed from resistance and support lines over a relatively short period to the overall trend you are watching.

If based on the extremes of the dealing price of the days you are watching, sometimes you will see the range of day trading prices begin to narrow and the over all trading resistance and support lines line narrow extended cone to a point ie. triangle formation.

As one comes nearer the apex of the triangle sometimes one can see the price range burst through one of those lines. If the break is maintained for two to three days in a any direction then it is suggestive of the change of the trend in the direction of the break.

It is stated by some that the triangle should be 2/3 completed.

Also. it is suggested that it is unwise to buy in a triangle (unless you have inside information) and leave purchases or even sells until the price has established a definite trend again.

Substitute for days the unit of time you are using, minutes, weeks, and months.

Overall, I think that my results from using TA in combination with basic fundamentals have given me far greater returns than I would have expected. I wish I hadnt regarded then based on phantasy. But I am still sceptical or at least cautious of many of the claims.

thanks doug and fred for your help in triangle explanations.very helpful.
lovely bit of blue today. cant beat a bit of blue.....price seems to be stable . fred, what claims are you sceptical about?

Hope this triangle thing means first SHARP DROP - wait for it, panic sellers reading last years results, followed quickly by people BUYING at low price (me included) for next years results and then the bounce up and beyond 20p!! I will be watching closely on Monday and should there be a buying op, I'm ready. If not I'll settle for a nice blue triangle pointing up on the SEO share price.

Andysmith - you been reading my mind again - although I'm not sure I should add any more weight to SEO. On balance would like immediate and sustained sharp rise up through 20p to my next stop of 25p to give me some profits to place elsewhere.

SD

planttec
I dont want to rub it in but Archie Norman is raking it in (energis)

Triangles what Triangles

Bosely

The reason for some of my scepticism is that in my youth I attended many workshops led by very enthusiastic leaders who had unrealistic claims based on very little practice. Often these leaders had been taught to leader by similar leaders in USA. These I may add were not workshops on TA (Technical Analysis) but TA as in Transactional Analysis. This is not disputing that there is much of value in both schools of thought.

The other damming thing about TA is that it is Ok until the trend changes and then it aint. It gives some probability of the future but nothing is absolute and I dont think it can or should be divorced from the Fundamentals. The mood of the market is effected by announcement or economic changes which effect the underlying fundaments of the security and those influence the mood of the market, which then can be read by the various charts and indicators.

The other important feature is that the crowd buying the securities are the same people as you and me and often following the overall trend. When you sell they look at the graph and sell on the same interpretation you are making etc. which makes the results self fulfilling . The only thing is that there others interpreting the graph oppositely and selling or selling earlier or later than you.

I think many authors of the various tombs make more out of their authorships than the markets.

But I still am intrigue by TA and am certainly not an expert or a completely true believer in all that it is claimed about it. But it is very useful once a tren has been established.

Meanwhile if you look at BPRG you may see a triangle formation on a slightly longer period of time than SEO.

I think I am a long term holder of SEO and BPRG.

Apologies if the is boring.

Fred1new
"boring". You said it, it has been proven that if you stick a pin in the F.T share page you will do just as good as the so-called expert, and you don't give your self a headache.

Driver
I think that was true in the last great bull market 1989 to 2000. Not so sure now though. I think the debate may centre round the expression "so-called" in truth.

SD

stockdog
I wasn't suggesting that us experience seo investors did that.

I know you all have got your ways of checking the FTSE but this is a nice little link to have book marked it also gives you winners and Losers.


http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/ticker/markets/default.stm

"if you stick a pin in the F.T share page you will do just as good as the so-called expert"

Thats what Evil K does , but he picks the share next to the share that the pin went in.

May be he puts 3 pins in and makes a Triangle.

Triangles what Triangles

Dynamite have you been watching GMC, wow, its like SEO was a couple of weeks ago...