# The ten important rules of technical trading



## swathika992 (12 October 2016)

Here the list of ten important rules of technical trading

Map the Trends
Spot the Trend and Go With It
Find the Low and High of It
Know How Far to Backtrack
Draw the Line
Follow That Average
Learn the Turns
Know the Warning Signs
Trend or Not a Trend?
Know the Confirming Signs


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## tech/a (14 October 2016)

swathika992 said:


> Here the list of ten important rules of technical trading
> 
> Map the Trends
> Spot the Trend and Go With It
> ...




Ill the subjectivity of these general "Rules" will see 
failure---
There is no mention of application.(Trading Methodology)
No mention of Risk mitigation.

An experienced Technician would be able to spot all
10 in a 30 second chart check.
A discretionary trader would THEN use the basics as perhaps a 
filter to then apply more advanced analysis and in turn implement 
his trading plan or method.

A systems trader may use the above as a basic filter also.

Perhaps you could list Important Rules for Applying T/A
and important rules for Risk mitigation.

Might get some discussion.


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## BarneyChambers (13 December 2016)

tech/a said:


> Ill the subjectivity of these general "Rules" will see
> failure---
> There is no mention of application.(Trading Methodology)
> No mention of Risk mitigation.
> ...





I absolutely agree, risk management is definitely one of the most important things to consider. Following this thread, interested to see where the discussion goes !


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## howardbandy (13 December 2016)

Greetings --

If I may suggest, watch these videos for techniques that identify risk and manage trading to hold risk within acceptable levels:
http://www.blueowlpress.com/video-presentations

Best,  Howard


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## pettlepop (21 December 2016)

Always buy a stock with a low RSI (Relative Strength Index).  The stock in question at the moment is 
TRY (Troy Resources) with a RSI of under 14.  This means a much greater chance that the stock is so oversold that its due for a massive bounce.  Buyers now outweigh sellers 2:1


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## tech/a (21 December 2016)

pettlepop said:


> Always buy a stock with a low RSI (Relative Strength Index).  The stock in question at the moment is
> TRY (Troy Resources) with a RSI of under 14.  This means a much greater chance that the stock is so oversold that its due for a massive bounce.  Buyers now outweigh sellers 2:1




While you could be right. But a blanket rule such as this will
often find you in an oversold issue for extended periods.
A low RSI is no guarantee of a future rising in stock price.
Should be used in conjunction with other analysis.

Re TRY
That recent gap down on Very high volume looks nasty
and is likely to act as resistance. I don't see any signs of recovery
for TRY technically.

Just a ducks opinion.


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## pettlepop (21 December 2016)

Many stock bounce hard in an upwards direction after RSI gets extremely oversold, kinda like a rubber band snapping back after a major stretch down.  I reckon TRY is due for a major rally.  All eyes on oversold stocks for value technical trading.


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## DaveDaGr8 (21 December 2016)

rule #1

Dead cats don't bounce.


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## pettlepop (21 December 2016)

Here we go boys and girls the rules state that an oversold stock like TRY must rally back to what is considered normal value.  Its very much undervalued based on the RSI.  15 cents just taken out while I am typing so I must be right on the money with technical trading as the market agrees with me  Enjoy the rally my friends!


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## pixel (21 December 2016)

tech/a said:


> Re TRY
> That recent gap down on Very high volume looks nasty
> and is likely to act as resistance. I don't see any signs of recovery
> for TRY technically.
> ...




Adding a catty remark: The gap-down on Dec 15th seems to have been a sensible market reaction to learning a director had sold 2M shares and "forgotten" to inform the market. 
Normally, Directors know when something is fishy, so RSI will hardly come into play.

Another point, re goldies in general: While markets are rallying, investors are likely to ignore the speculative end of the spectrum. And anything that glitters is more likely to find under that umbrella. Better keep my claws off it :


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## tech/a (21 December 2016)

*You might be right!*



pettlepop said:


> Here we go boys and girls the rules state that an oversold stock like TRY must rally back to what is considered normal value.  Its very much undervalued based on the RSI.  15 cents just taken out while I am typing so I must be right on the money with technical trading as the market agrees with me  Enjoy the rally my friends!




Thought the rule was short when over bought in a Down trend and buy when over sold in an up trend?

What's "Normal" Value?

TRY traded at 15 c is still at 15 c I don't see 15c being taken out.


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## minwa (21 December 2016)

pettlepop said:


> Always buy a stock with a low RSI (Relative Strength Index).  The stock in question at the moment is
> TRY (Troy Resources) with a RSI of under 14.  This means a much greater chance that the stock is so oversold that its due for a massive bounce.  Buyers now outweigh sellers 2:1







Using your RSI rule of under 14, the buy was on Dec 13th just before a 40% slide in the stock. 

Every bottom will have a low RSI. Usually takes tens or hundreds of low RSI to make a bottom.


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## OmegaTrader (21 December 2016)

swathika992 said:


> Here the list of ten important rules of technical trading
> 
> Map the Trends
> Spot the Trend and Go With It
> ...




What in the hell.

Can someone please explain what this means in english!!

haha


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## cynic (21 December 2016)

I think it might require some illustrative examples from the poster in order to be rendered meaningful to others.

Personally, I prefer not to subscribe to ideologies which claim to the existence of absolute rules that should ideally only be applicable within certain contexts.


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## The Bear (21 December 2016)

OmegaTrader said:


> What in the hell.
> 
> Can someone please explain what this means in english!!
> 
> haha




It was just the old copy and paste job.

http://stockcharts.com/school/doku....s:john_murphy_s_ten_laws_of_technical_trading


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## tech/a (21 December 2016)

The Bear said:


> It was just the old copy and paste job.
> 
> http://stockcharts.com/school/doku....s:john_murphy_s_ten_laws_of_technical_trading




Makes sence


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## Modest (21 December 2016)

swathika992 said:


> Here the list of ten important rules of technical trading
> 
> Map the Trends
> Spot the Trend and Go With It
> ...


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## OmegaTrader (22 December 2016)

The Bear said:


> It was just the old copy and paste job.
> 
> http://stockcharts.com/school/doku....s:john_murphy_s_ten_laws_of_technical_trading




Now it makes some sense.

But what was the purpose of the post?

Pretty random


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## tech/a (22 December 2016)

OmegaTrader said:


> Now it makes some sense.
> 
> But what was the purpose of the post?
> 
> Pretty random




In a less informed arena there are people who need recognition
and can cut and paste ''Ã‹xpert" snippets infinitum.

Fortunately different here.
Makes you wonder about some experts in *ALL* fields---if you get my drift.


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## pixel (22 December 2016)

tech/a said:


> In a less informed arena there are people who need recognition
> and can cut and paste ''Ã‹xpert" snippets infinitum.
> 
> Fortunately different here.
> Makes you wonder about some experts in *ALL* fields---if you get my drift.




she sums it up nicely:
https://www.youtube.com/watch?v=wU1pD4xPe2M


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## pettlepop (4 January 2017)

Trade with volume, such as the case on ACL right now!


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## tech/a (4 January 2017)

A very generalised un supported and un substantiated comment.

$16000 turn over. You call that volume?


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## Keith trader (8 January 2017)

pettlepop said:


> Here we go boys and girls the rules state that an oversold stock like TRY must rally back to what is considered normal value.  Its very much undervalued based on the RSI.  15 cents just taken out while I am typing so I must be right on the money with technical trading as the market agrees with me  Enjoy the rally my friends!






pettlepop said:


> Here we go boys and girls the rules state that an oversold stock like TRY must rally back to what is considered normal value.  Its very much undervalued based on the RSI.  15 cents just taken out while I am typing so I must be right on the money with technical trading as the market agrees with me  Enjoy the rally my friends!



I think I'm with you. If it can break through resistance just under 20c then I think we won't see much more resistance until around 35c


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