written by reader Technical Analysis classroom

by | May 7, 2014 6:00 pm

This thread came about due to a request for more technical analysis info. Its to be hoped that even old dogs can learn new tricks. Certainly they can teach us puppies how to yap!
Enjoy.

Source URL: https://www.stockgumshoe.com/2014/05/microblog-technical-analysis-classroom/


71 responses to “written by reader Technical Analysis classroom”

  1. Alan Harris says:

    Opps….missed this post till now. Yes Im a great believer that the MA’s are an excellent indicator of general market sentiment. So v simply, I buy when the price crosses up above the MA and sell when it crosses below. Im sure there are fancier systems, but its a v simplistic strategy thats served me well.
    Trust me, Im not just playing dumb…..Im the real deal !

  2. Lulu says:

    Good morning Alan,
    Which particular MAs have been better indicators for med to long term trades for you? Im watching GILD and CELG trying to decide where a good entry point might be. Im neither long nor short. Stock or option. Thanks for sharing…..Lulu

  3. biotechlong (btl) says:

    Food for thought for chartists plotting ahead 4-to-6 weeks: will history repeat itself?
    http://finance.yahoo.com/blogs/talking-numbers/the-market-has-done-this-just-4-times-in-the-last-20-years-232157220.html

  4. Lulu says:

    Alan
    Ill look again in the am but since I u may be 3 hours ahead of me time wise ….
    here is what I see.
    CELG was not a sell
    GILD was a sell, Nov 13, 2014
    Lulu

  5. biggdan says:

    To answer from the Payola thread about a “Shooting Star” pattern, I don’t know much more than anyone else but noted several posts on the ESPR Stocktwits page pointing out that ESPR had one today. Here is the explanation of a Shooting Star: http://en.m.wikipedia.org/wiki/Shooting_star_(candlestick_pattern)

  6. Mark2m says:

    I just would like to throw my two cents referencing technical analysis. I have been a member of stockgumshoe for many years, but I have never been involved in any of the discussions. Many years ago I joined a trading group with the sole purpose of learning and continue education in technical analysis. We were quite fortunate in those years that due to the size of the group, we managed to get the best traders in the country and off course every platform developer, chartist etc.. . The traders purpose was to drum up business for their $1K + seminars over a weekend at the Hyatt. Especially helpful was the location in Denver, Colorado which meant a vacation/business trip for them. To provide interest we always were privy to 3-4 hours of mini seminar, from the traders, chartists, platform developers and anyone else in the business.
    These seminars were concentrated on futures, options, equities, with strictly technical analysis. Prior to joining this club, I also read the usual, and later found that most of the authors I read sell books and have never traded. Most of these books concentrate on the usual buzz words of Stochastics, EMA, VWP, ADX, linear progressions, Bollinger, RS, MACD, need I say more?. Of course your typical retail brokerage will include all the previous buzz words and unfortunately, most traders and investors accumulate indicators and studies to find the Holy Grail.
    The bottom line is throughout all these meetings the same message came thru, from the successful traders, not those that sell books.
    The recurrent theme with most of them is to keep it simple, in today’s world you can have your charts looking like Christmas tree ornaments, every conceivable addition which becomes more of a burden and a method of interpretation that only a Phd or nine year old child could understand. (only being facetious).
    To simplify matters this is what I have learned from many seminars, of note I would not recommend full blown seminars since your retention rate is minimal, even with the T-shirt, hat, workbook, DVD, etc.
    This is my recommendation, plus the commonality of information from these traders.
    1- Get a plan (which means money management, strict entry and exits, determining are you a trader or investor, are you trading for scalping, swing trader, etc.. I think you get the jest.) other factors are beyond the scope of this email.
    2- Learn Candlesticks
    3- Indicators, EMA or MA ,Volume , Price, Money Stream, in some cases stochastics and macd although these are lagging indicators.
    4- Learn the makeup of the charts patterns, head and shoulders, triangles, flags, etc..
    5- Again Learn Candlesticks ( I cannot over emphasize this)and study Volume and Price.
    6- Learn ABC ups and ABC Downs in conjuction with Fibonacci.
    Once you learn those basics than I would delve into the more esoteric studies if that is of interest to you. Remember, keep it simple there is no reason to have excess brain damage.

  7. Mark2m says:

    There are multiple free sources for charts on the web, although bottom line having experienced quite a few platforms including Trade Station, E Signal, Ensign, etc.. The best program for me is Worden Telechart. There is ton’s of information, ton’s of support, plus you have the option of a real time system or with 20 minute delay. The original program TC 2000K was the best/cheapest program and I have used it for 12+ years. The learning curve is a bit steep, but well worth the opportunity to navigate. Also their latest program which is also separate is very good and both at $29 per month. Of note if you want real time, instead of 20 minute delay (sometimes no delay) than I would recommend their platinum at $100 per month. The benefits are incredible, and you can sort for fundamentals, volume, anything you so desire in real time. The only drawback is since it is a visual item for me , yes I am alway’s looking at patterns in a 3 minute chart, than I scan and work with Telechart and put up multiple charts 15-20 of interest with my brokerage. My main brokerage is IB, and their charts are worthless, so I have a small brokerage where I can put up multiple charts.
    The only drawback to TC is their Fibs which are hard to interpret so I have to do the analysis on my own. I believe TC has a 30 day free period, and does include simple Algebraic functions to create your own Personal Criteria Formula’s. For instance on my scans I have Breaking out of a trading range, Close up 2% with volume 2X 10 day moving average. Also the beauty of that program is the ability to surf the web or stock gumshoe, take information and add to the TC program .

  8. Alan Harris says:

    All (except KSS!!): Theres a new post on Jingle Bells. I urge you to read it v soon. http://www.stockgumshoe.com/2014/11/microblog-jingle-bells/#comment-3379639

  9. Alan Harris says:

    Theirre: Are you here?

  10. SoGiAm says:

    Gummies I don’t want to be the only bear in the room but this revelent and timely imho:
    http://www.smallcapnetwork.com/The-Market-Just-Ran-Out-of-Gas-or-More-Specifically-Ran-Out-of-Buyers/s/article/view/p/mid/7/id/1716/
    I think that most of us are in the same boat looking for dry gun powder and safest liquidity to temporarily exit to maximize profits now. Watch the markets carefully especially today! Best-Ben

  11. Alan Harris says:

    All: If anyone wants to send a jinglebells greeting to KSS…heres the place http://www.stockgumshoe.com/2014/12/microblog-happy-christmas-dr-kss-from-all-us-gummies/

  12. Lulu says:

    Useful links:
    Understanding Analysts’ Recommendations. FINRA’s guide provides some great information about how to read analysts’ ratings systems and how analysts’ recommendations should and should not factor into your investment decisions.
    Here are some highlights from their free guide:
    – Ratings tend to be inflated. Brokerage firms and investment research firms rarely ever issue “sell” and “underperform” ratings. “Buy” ratings are really “hold” ratings and “hold” ratings are really “sell” ratings.
    – Companies use very different ratings systems. One firm’s “buy” rating may be its top rating; however, another firm might have one or two ratings above its “buy rating.”
    – Not all ratings companies’ recommendations carry equal weight in the eyes of the market. Some equities research firms, like Goldman Sachs and Merrill Lynch, have much more influence on the movement of stock prices than smaller, boutique firms.
    – Firms may not be acting in your best interest. Brokerages and research houses offer ratings primarily for the benefit of large, institutional investors, not for retail investors. Firms may also have conflicts of interest relating to the companies that they rate. For example, a firm that is underwriting an IPO is very unlikely to have anything negative to say about the stock once it comes out.
    Click Here to Get Your Copy of FINRA’s Guide to Understanding Analysts’ Recommendations (FREE)
    cheers Lulu

  13. Mark2m says:

    Has this post moved, or is this dormant since no one has any interest in TA ?

  14. hendrixnuzzles says:

    Recently here, new subscriber.

    I use candlesticks and relatively straight forward basic technical indicators…EMA, volume,
    MACD over different time frames. Do not have the temperment for highly complicated technicals.

    What’s on your mind ?

  15. Mark says:

    I have written previously Nov 22,2014 about my methods to keep it simple. I recently have come across Ichimoku Cloud while looking for a better means of trading Forex. It turns out that with equities and the scanning capabilities of my program, Ichimoku is excellent in determining Bullish/Bearish/or neutral. I wanted some insight and communicate with others that are familiar with Ichimoku. Since a simple scan seems more efficacious utilizing the cloud vs Fibonacci.

  16. hendrixnuzzles says:

    I’m not the right guy for you, never heard of Ichimoku. Know a little on Fibonacci but I find as a practical matter I am not disciplined enough to apply it. Best wishes

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