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.

Good luck to all.

It's me again!!! Could somebody please explain why, on a OHLC graph, there is a tick for open a tick for close but they are not joined by a line. I can understand if the day low & high are the two ticks then there will be no line above or below the ticks Is it because the sp jumped from the open price to the close price without trading any price in between. If yes is there any singificance in this? eg BRE yesterday. Have missed this thread.

hi maggster


not sure on that, will look at BRE. Might be data error?

I remember yours (and others) interest in forward looking patterns.

read this thread and view all the charts. this james16 fella is the king of bars

http://www.forexfactory.com/showthread.php?t=2331

I learnt loads from this thread when it started and advanced onto my own pattern watching

regards D

Many thanks Dy. Had a look and will keep for my bedtime reading.

now for a nice simple chart to understand - Dow Index
as you can see, solid bounce off 200 dma; easy piercing of 25 dma and now nudging up underneath 50 dma ..... break through that, and there could be good run ahead, at least until Fed announcement next week!

lol

there will always be a reason to pass/break or fall through a line.. I would agree the 200 is one most watch though.

to my mind, 50 dma also has considerable relevance ...... would also use 20 dma, but for some reason that does not appear here .... it is also a truism that so many follow trends and charts that they tend to self-fullfil

yes. the 21 MA is about the most followed short term

do you know why?

they should only be used to confirm a trend or direction when price crosses them. they lag and are useless for entry points in any other way. (apart from the 200 its seems!)

I thought that when the 5 crosses the 20 indicates buy and vice versa sell. Have been checking that out on several charts and it seems to work all be it slightly after the trend starts

of course they only confirm a trend, but to rubbish the crossing as being "useless for entry points" is rubbish itself! ...... to repeat; never claimed charts of any kind were gospel, but they sure give a damn good indication, especially when linked to any impetus behind such a move, when might be a good time to get in or out

yes magg those MA's will keep you trading in the right direction which is the aim of the game I suppose, long term though they can eat up any profits gained in choppy ranging market conditions.

explanation (before cynic goes all cynical)

look at a longer term chart with your MAs attached, focus on choppy ranging periods. you will see that the price turns under and above the 20 MA and by time the 5 MA crosses the price is making its way back above the MA, this price action will whipsaw you in and out of positions negatively..

Although the strategy may have a positive outcome over the very long term (it most likely does), I know of many people who used this or similar strategy and gave up because they get impatient and annoyed during the choppy times, whilst giving some of their profits back.

Then you also have the problem of maximising any profits and riding the trends out until the end. If you don't do this then the choppy times will definitely take away what little you made in the trend. So no closing early after a few days of profit. :) You gotta see it through to until the death.

In my opinion you have to be strong willed and disciplined to succeed with a MA cross stategy. I'm not as strong as that. I like to nibble from price action and get out quicker. I have not the patience to keep trades open for months or even years. (only the odd little share buy/flutter)

this is also why I prefer the price crossing say a 50 MA rather than an MA crossing

at least you are following the price and not an MA that is say (if set to 5) 5 days behind the price...

strong willed and disciplined ..... you got it in one!..... whichever so-called system you choose to follow, that is still the dictum

Yes it is. I can be disciplined for short term. But get frustrated by positions which dont move for weeks.

I know my own character and flaws in it, so trade accordingly. I learnt the hard way though..

managed to be a "good boy" and closed out my Dow long with a modest profit but a profit nonetheless .... if Dow now roars ahead at the cllse, so be it

tut tut posting exits and not entries again ;-)

Just on the foothills of the strong willed and disiciplined mountain but have learned to accept my losses without cutting my throat. Now need to control that demon greed and set stop losses when I've got a profit. I have some shares that i just let sit but that's because I'm loosing sooooooooooooo much there's not worth cashing in. Am also learning to sit on my hands and not rush in until I see some indicators.
Have been watching UKC for some time seems like a good trading share opinions welcomed.

don't be a bitchy littkle queen ..... i think i did elsewhere actually, and if you really want to know, bought at 13385 and sold at 13420