I often find all manner of reference to Technical Analysis whilst reading threads, questioning certain elements, asking for advice on indicators and also requesting advice on a stock and whether it's a good time to buy, sell, hold or remain indifferent. I am the first to admit that my own TA is still in its infancy, but I do spend time on expanding my knowledge (hopefully in the right direction!).

Rather than having to ask a TA question on a particular thread, perhaps this thread could be used as a forum for TA queries and become a knowledge base. Just a thought, if there is little or no interest, the thread will sink without trace and that will be the end of that. I will personally add a few snippets to help those with less knowledge (if that's possible) to keep things rolling. There is a danger that the thread will receive countless requests for opinions on a variety of stocks and there is only so much I can do alone, therefore I would more than welcome input from other posters, no matter how rudimentary they believe their own knowledge to be, hopefully some real experts will take the time to contribute.

it's a bugger to read ...... my view was that the "extra" fall was merely a view following on from the late tumble in US + falls in Asia etc, rather than factual ...... just may re-open that short later, but shall wait and see.

good to see there is a prospective alternate bidder for ICI (Dow Chem), though not entirely unexpected ...... rumour has it that Dupont may also enter the fray ..... now that would be very jolly indeed!

so chuffed about PRX! ..... was put into that by a friend a couple of months back, though as you know, i am no fan of these diddy-minnows, thogh there are one or two in my prtfolio ....... don't think i shall be retiring on the proceeds of PRX, but very nice nevertheless!

bollocks!
went long Dow and set a limit (up) while I cooked dinner etc .... damn thing got hit and then continued to rocket ahead ..... suppose I shouldn't complain really as FTSE should now be set for a good start tomorrow

Decision made on EMG, was unable to get to my computer until 10am was already taken out c'est la vie! So will now watch for new entry to attempt to recoup losses.
Cynic thanks for advice on PRX which I will take as I've made enough mistakes.

always the prob when one sets trailing losses or even, as i found this evening limit-up!

Trying a slightly different approach this evening with EMG. With the breaking of the long term support line it is difficult to find what you might call a normal support line usually drawn through a succession of higher lows. There is another method where a trendline is drawn through as many highs or lows as possible. I have attempted this with EMG and according to the 'system' the SP is currently sitting on support at 528p and resistance at 583p. If the lines are correct I would expect a bounce tomorrow morning, which I would hope for anyway, considering that the indicators are if not oversold very close to.

Will be interesting to see what happens, could be the nail in the coffin of another theory :)

pth

keep drawing any trendline which others might use , at the mo what you are drawing is decreasing momentum lines which are probably just as well looked at via macd - in other words if macd turns up at a line you have the right one - if that makes any sense

will wait for our friend to return to tell me i am talking b*ll*

tell me about it - lol! ..... per my post above, it sort of cost me a bundle

yeah macd is too slow aswell by time the thing turns the price has already made its move.. however using it conjunction with some price action gives you an edge

on trend lines reversal bars are best signal to use . full stop.

look at this chart.. on every bounce from the trend line what do you see?
(bars with blue dots under or over them)

You see a bar in a down move which not only has a higher close than open BUT has a close higher than the previous bars high too.

You dont have to look at the trend line for these signals, Ive highlighted a few within small retraces in the trend. Usually the first bar which can close above the previous bars high with a higher close than open is a reversal bar.

again, it dont work all the time, but its a damn good forward pointing indicator. Test it out on some stocks with good trends.

You can also reverse this idea when you get a huge rise, look for the breakdowns below a bar.

and unfortunately for MAG theres no reversal bar yet :(

looks like you are talking about swing trading , i prefer multiple confirmation. the example is hard to read but i think in each of your examples the macd has reversed. i take it you act on the next bar which is not what rivelland advocates

agree entirely with you re price action leading

Now if only I had understood this sooner. If I understand correctly the reversal is - the first bar that closes below the previous day's low with a lower close than open. Hope Ican get this sussed before I'm bankrupt & divorced!

maddoctor it dont have to be swing trading. reversal bars happen at intraday frequency too. you just need a combination of things which work for a particular index/stock/future. testing is best.

bests D.

Maggie yes that is correct. but make one thing clear. do not take the sell signals when a price is still in an up trend. only look to keep buying the long reversal.

how do you know this I hear you ask? you dont

but only taking the buy reversals whilst the MACD was above the zero line is a good tool. it would have kept you out of trouble a lot on the chart above for the last year.

as always stops apply. good stop placement is under or above previous bar close.

bests D

PT,

Just getting into TA, so thanks for the thread (all the hard work).
And it's great to see a thread that is compiled and contributed to by grown-ups.
Requires a lot of study, but getting there.
Cheers to all.
Greek.

"grown ups" ???????????

put another way .... rarely slagging on this thread, except between D and myself for a short evening!

B wave on the dow anybody?

what does that mean? ....... my gut feel about Dow today is that it will be down >100 by close tonight as people take some rather unexpected profits from the week and as a precaution against yet more sub-prime lenders going belly up

cynic , falls generally go , down A , up B(but not as much as the fall) , then C down (greater than A fall)

hope that helps

Your thoughts on this one PTH Cynic please?.

Nb, trading on a low forward multiple of just over 9 times to end of sept 2007 PEG 0.6