A thread created for the TA of charts on the LSE markets. (aim and plus included)
Beginners and advanced wellcome. Long or short, just post your views and lets have some positive discussion. FIRE AWAY.
NB, UK indicies and sector charts can also to be included in posters analysis

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RESOURCES

http://blog.tradersdaytrading.com/ http://stockcharts.com/school/doku.php?id=chart_school http://www.cantos.com/charts/masterclass http://www.onlinetradingconcepts.com/TechnicalAnalysis/ZigZag.html http://bigcharts.marketwatch.com/ http://www.stockmarket-coach.com/index.html http://www.trade2win.com/knowledge/equities/ http://www.financial-spread-betting.com/

CHART SCREENERS

http://www.iii.co.uk/spreadbetting/?type=technical http://www.barchart.com/lookup.php?field=name&search=contains&string=YELL&e=nf&type[]=2&type[]=1&type[]=5&type[]=9&type[]=10&type[]=4&type[]=CAN&type[]=LON&type[]=IND#results http://www.autochartist.com/ Nb, only free to IG Index Members. http://www.britishbulls.com/

BULLISH TRENDING CHARTS. Timeframe 3 Daily. Updates And Renewals Will Take Place On a regular basis.

MOMENTUM http://www.onlinetradingconcepts.com/TechnicalAnalysis/Momentum.html ADX http://stockcharts.com/school/doku.php?st=adx&id=chart_school:technical_indicators:average_directional_

BEARISH TRENDING CHARTS Timeframe 3 Daily. Updates And Renewals Will Take Place On A Regular Basis.

12 WEEK HIGHS Timeframe 3 Daily. Updates And Renewals Will Take Place On A Regular Basis.

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Good point made Master RSI re UNIQ chart....... Ill look into that Im wondering if its because Im using a medium term chart rather than short term???.

Wanted to rush iit off anyway as all lower indicators were just turning positive all at once and IMHO a great point to get in especially if the SP is positive aswell.

GRG through 5

Excelent call skiny.

You watch UNIQ go now.

Food Producers (NMX35700)chart is looking very positive with a second wave now well matured and hopefully we can go on and break into a third wave up. All stands well for UNIQ going forward.

Added another site to resources..... stockmarket coach.

Devro DVO was churned out on my screener this morning with both fundies and TA looking rather solid at the moment.

Ive hopefully caught it with MACD turning positive to back up the Flag chart pattern on the SP chart.

Interesting chart at Yule Cato YULC.

Looks like a trading Buy here and maybe a lot more later.

Goldfinger,

I have been puzzled by my recent chart reading and found that stochastics indicators pointing to overbought, frequently, when I thought from other indicators, that an up-trend or down-trend was established.

I note you sometimes this indicator.

I was relieved to read the below.

Any comments.


Stochastics
Stochastic is an oscillator indicator that has been around for many decades. Oscillators work best and were written for sideways trending or trading range markets. Traders who like to trade rolling stocks and other sideways trending action find stochastic useful. However, when the market is trending strongly, stochastic will move up to the overbought area of the chart and give an exit signal just as the stock is about to move up with momentum and velocity. Stochastic should only be used for sideways markets or stocks that are rolling in wide trading range patterns. It fails miserably when used in a trending stock.
Stochastic was written by George Lane and is a true oscillator which means it was primarily designed to track either overbought or oversold price conditions. There are many variations of stochastic. Williams %R is a version of stochastic and behaves similarly.
The stochastic indicator formula is based upon the presumption that as a run moves up (or down) a stock will close nearer to its high as momentum builds. But as momentum tapers off or buyers become scarce, then a stock will close lower off of its high price for the day. Most traders use a slow stochastic which has 3 moving averages in the formula.
Stochastic doesn't work on momentum moving stocks or in a strongly trending momentum market because the indicator will give premature overbought signals -- causing the trader to exit too early. However, stochastic failures can be early signals of a trend reversal and are helpful in identifying early a sudden change of trend from a sideways pattern to a rally or to a downtrend. This is vital to traders who trade stocks on a short term basis.

Hi Fred. Yep some TAers say you can only use true oscilators in sideways markets and usually in the smaller time frame. But having read Marcel Links book "High Probability Trading" he disproves this and uses his own interpretation.

I think the key is to have a couple of oscilators (stochs and MACD) and hopefully each backing each other up and say RSI to check out the stocks own strength, and then relative strength to check out the stock in comparison to the sector or indicies.

I also like to use ADX to confirm that a stock which Ive used an oscilator on like stochs is staying strong within a rising or lowering trend channel, and not likely to tail off into a horizontal market.

I think that could be the key to your query.

ADX though is sometimes absent on UK chart sites, the Yanks seem to use it a lot more than us.

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Just been checking out a differing approach with MACD where the MACD line crosses over the signal line but only at 0 or just slightly above it (sticking ridgidlyto this). Seems to be working well after only a few days.

I think you can get too much into these lower indicators and ignore whats happening with SP. Mind its great to see a plan coming together when youve spent a bit of time looking into it.

have a good weekend.

Thanks G,

I will have a look at ADR.


I have been playing with median price and time periods ie. Intra-day Buying and sales. 1day 1 week and 1month and often use a shorter than usual MACD for comparison.

Also messing around with (back testing) Williams Awesome Osc and Williams of different periods.

Surprised that they do coincide frequently or coincide with price movement.

Anyway have a good weekend.

I will try a dig out some relevant Maps.

don't get too caught up in chartism; always remember that charts are merely a tool that reflect and give potential trends .... for sure they aren't the gospel or you'ld prob be quite heavily short of the indices and panicing!

Tend to agree cyners for the frequent and medium term trader but a day trader and more important a intraday trader would be lost without all the tools associated with charts/TA.

At the moment Im keeping off the intraday trading as it can be a very stressfull occupation especially if you are spreadbetting where you need to be sure of a small spread on opening and position sizing on entry.

The thought of going back to very volatile situations when Ive been through a very difficult personal life in the last 6 months or so doesnt appeal at the moment but it looks like Fred is getting stuck in there in this area.

Fred ive edited that post above it should read ADX lower indicator.

Back testing hmmmm youl be putting a system together next.

Me and a chap off of S/Crazy tried our hand at that last spring. Problem we found was that systems only work for a limited period and need constantly tweaking. Even got to the point where we had a free month with the system site tradestation where all the formula from past systems can be used and you can put together your own formula.

The motley fool site has threads dedicated to systems if your interested. Its difficult stuff mind and I personally wasnt convinced it was better at producing results than just random stock picking.

http://boards.fool.co.uk/mechanical-investing-tools-50108.aspx

http://boards.fool.co.uk/mechanical-investing-beginners-50113.aspx

http://boards.fool.co.uk/mechanical-investing-advanced-50089.aspx

i've never understood how (intra)day traders make a consistent living .... from that, i exclude the true professionals who are totally focussed and have all sorts of support and back-up, but even they get it spectacularly wrong

Yep would agree with you on most of that cyners but a dedicated intraday trader who is strictly disciplined can make a good living but it needs a very healthy capital pot to start with and to be maintained.

Think if you start with a low capital base you are up against it from day one. Markets are so volatile these days and spreads so wide that you can be wiped out pretty quickly.

Ive know a few guys over the years who have done very well out of it but then again Ive also seen 'get rich quick merchants' take a real battering.

I reckon you need at least a full year practising on simulators etc before you risk real money.

When I go back to it I always have a few weeks simulation using monopoly money before Im confident to get back in the chair.

Talking of chairs............... Niche Market and Mon Mome E/Way for the Grand National this afternoon.

Just added a new trading education site to resources at top of thread.

Delves into lower indicators.

http://www.trade2win.com/knowledge/equities/

i shall watch with interest (for a change) ..... confess i don't follow the nags though i used to ride a lot (behave yourself!)

LOL.

Cynic,

Some of day traders have a job to pay for their hobby or dreams.

i'm surprised that with the concentration needed for day trading that doing another job effectively is possible