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Author: [Investments] Topic: Chart reading ???
Knoxpoker
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Knoxpoker
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#1
Posted: 3/6/2012 8:06:17 PM

are there other things I should be looking for other than MACD, RSI, CCI . I am looking for indications of a breakout move .. Can anyone give me advice??? 

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wallstreetcappers
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#2
Posted: 3/6/2012 9:18:44 PM
Make sure you arent overlapping indicators which have repetitive nature to how they are calculated.

Find a site that lists all the technical indicators, how they are calculated and get rid of any which are not of use. Some of them are inverse to another, some work well with others together..etc etc.

Some top out and stop moving..like RSI, it can bottom out or top out and not reflect the move in the stock..

For example, look at RSI and slow stochastics on AAPL for the last year..you would have been crushed trying to short a cross over.

Technical indicators can ruin you if relied upon solely as a reason for buying or shorting, also consider market trend and fundamental reasons vs just technical indicators.
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2169
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#3
Posted: 3/7/2012 12:39:45 PM
use the sma 20, 50, 200; and, you should try to recognize chart patterns too
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Knoxpoker
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#4
Posted: 3/7/2012 7:29:45 PM

Wallstreet .. I dont short .. I only go long ..

 

If you look at Apple  there was an entry point around November 23rd  from what I see it had sideways price action. It hit its support 3 times before it made a small move up . Then it retracted to 366.00 a share .. which was its lowest low in 4 months .I would have bought at that 366 level being it was oversold at that point .. Then it started that nice upward trend .

My point is I think I have a jist of when to enter and monitor ( set stop loss also)  I only make entry points at lows and oversold points .. I have been doing great since I started charting .Before charting  I mostly bought on news and earnings , but that is too risky ..

My question is will charting work with the same results in a bearish market ???  thanks ..

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#5
Posted: 3/7/2012 8:48:23 PM
Look at the indicators on the upside for any hot stock or downside on a stock getting crushed..if you went short into those head fake RSI or MACD numbers you got crushed..same goes in bear markets. If you buy below 20 but crossing up on an RSI it could kill you..the extremes in either sense are not able to be shown on those indicators.

That should make sense if you know charting..

Check out FSLR and a 1 yr chart..tell me if you bought off a bottom you didnt lose and lose big?

Charting is good for a longer trend or for a quick scalp, but it only takes one miss to kill you.
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Knoxpoker
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#6
Posted: 3/7/2012 10:19:58 PM

FSLR  on the 1yr . there was an entry point of a double bottom on September 8th 2011  ,, You would have picked up 7 dollars a share for a time period of about six days .. after that the stock tanked ... solid down trend ,, That is a killer ... but after a buy (long) on Sept 8th that stop loss should have been set at 79.90  would have limited the hard loss when it started to downtrend ..

I am not big on fundamentals .. which ones do you look for ..??

what one thing would quickly  turn you off from a stock at first glance??

 

thanks again .. I hope I am not asking to many questions ..  but I really trust your info... I know you know what you are doing ..
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#7
Posted: 3/31/2012 12:27:38 PM
Wallstreet ... "quick scalp" ... well said
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