Teach me Technical Analysis!!! - Page 16

Quote:

Originally Posted by StockJock-e 

 

Correct, as Bob says, what ever system works.

 

But keep in mind, if all we had to do was use a SMA to use as a signal to buy and sell to make money, we would all be billionaires by now.

 

He's already said it works for him and I'm saying it works for me. If it doesn't work for you I'm sorry. lol

Seasoned traders know TA doesn't "work" or "not work". TA is simply a tool used to gather information, information which we use to create a system of expectancy. Therefore it's the traders ability to asses the information and their execution that brings success or failure.

I think Bob was joking...SMA billionaire checking in

Quote:

Originally Posted by Valupak 

This probably sounds like a dumb question but why can't someone trade based on just the sma or ema?  I feel like if you buy when it's under and sell when it's above you always come out on top and it seems to work very well whenever I paper trade(only in college so i'm poor).  I know that stuff in the news/earnings could screw this up but I feel like i'm missing something.

I may have found a problem. I am talking about a chart setup and I think you are also while some think you're looking for education in general. I have and do trade stocks with just SMA's on my chart plus MACD viewed at one hour which I think is important. I trade based on a 5 minute chart.

After viewing these other posts you will need to clarify because there is a lot more going on in the background that I haven't explained and that the others haven't explained and it can't all be discussed in this thread anyway. I strongly suggest that you use the WIKIS link at the top of the page and search the education forum for specific questions you may have. When you run across something that doesn't make sense then we're all ears and hopefully can help.

So how about restating what you would like to know because I think it's just chart setup.

Quote:

Originally Posted by MC 

Seasoned traders know TA doesn't "work" or "not work". TA is simply a tool used to gather information, information which we use to create a system of expectancy. Therefore it's the traders ability to asses the information and their execution that brings success or failure.

I'd say this totally nails it on the head.

Quote:

Originally Posted by BobK 

 

 

 

I may have found a problem. I am talking about a chart setup and I think you are also while some think you're looking for education in general. I have and do trade stocks with just SMA's on my chart plus MACD viewed at one hour which I think is important. I trade based on a 5 minute chart.

 

After viewing these other posts you will need to clarify because there is a lot more going on in the background that I haven't explained and that the others haven't explained and it can't all be discussed in this thread anyway. I strongly suggest that you use the WIKIS link at the top of the page and search the education forum for specific questions you may have. When you run across something that doesn't make sense then we're all ears and hopefully can help.

 

So how about restating what you would like to know because I think it's just chart setup.

I am talking about it on a chart.  So would the time you have it set for ex: 1 day lag behind the price 1 day?  I also use the macd and bollinger bands plus keeping support and resistance levels in mind.  Sorry for not being clear, I have just been real curious on this because I feel like it works to well.  Those wikis are really helpful too!

Thank StockJock for the awesome tutorial. Recently, I followed the lessons and tried to make buying/selling decision based on the analysis. Since I am not really sure if my view is correct or not, can you guys give me advice?

This is BIDU 6 months chart.

1. By the support/resistance analysis, I see it hits the support again recently. (buy)

2. the shape of support and resistance shows buying? (not sure)

3. the RSI indicator shows a oversold (buy)

By the incompleted analysis, I make a buying decision. 

Since I just started learning the analysis, please forgive me for the mistakes. 

Questions:

1. What MACD shows here?

2. DId I make the right statements above?

3. Is there any other evidence on the chart I didn't point out?

thanks guys

duplicated..

thanks for the comments! I will keep learning! ps. good TA. like it.

Quote:

Originally Posted by StockJock-e 

One thing we should be cautious of is using too many indicators, try keep it simple!

 

I strongly agree with that........nowwhat 012

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Let's look at the HUI 400 and 500 Levels......

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Because those two are EASY to play (and read)

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But to point them out here (as I've just done) is prohibited (for some peculiar reason)....

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http://www.amazon.com/Martin-Prings-Introduction-Technical-Analysis/dp/0070329338

This really helped me out a lot if you are willing to pay for some books. The CDs that go along with it really help the further along you go.

Thank you very much for the excellent lessons, I am just starting to learn about technical analysis and you really make it much easier to understand. Keep up the great work, thank you 

hello

am new in stock market.i join it 2 weeks ago.

people have experiance from 20 years and more.

basically am learning also am student..i have request to all please tell me in simple words.how do i trade.i mean tell me about the market where i can take entry.

am starting from initial lever from nearly $200...

kindly inform me best way of trading..

I have a question in regards to properly identifying trend lines. Let us say that a trend line has been pierced...

Do you leave the trend line in place or adjust it like this?...

I have really been working hard on my TA, and this one keeps baffling me.

TIA

Quote:

Originally Posted by Stevie_B 

I have a question in regards to properly identifying trend lines. Let us say that a trend line has been pierced...

 

 

 

 

Do you leave the trend line in place or adjust it like this?...

 

 

 

 

I have really been working hard on my TA, and this one keeps baffling me.

 

TIA

A trend line can be broken. You can always adjust to see what fits best. If anything, draw 2 trend lines and see where it hits again in the future...then that's probably the correct one.

But it can fall below and close above it again. If just the shadow is below it but the body of the candle closes above the candle then it is still in that wedge, channel, triangle, etc. It is not a confirmation of a break.