# Learning Technical Analysis Q&A



## tech/a

I recieve a number of emails from people who are looking for guidence and specific information with regard to T/A.

Most are at entry level.
Many seem to want to be able to use T/A but have no idea how to apply it.

The subject is infinately variable and not something I want to try and plough through over months if not years.

*BUT*
My view is most people turn a very simple methodology into a more complex one under the guise that the more complex must be the more successful.

Thats plain wrong in my view. Very valuable and indeed profitable T/A can be applied very simply.

Im wondering if there is an intrest in some introductory level T/A being posted by myself based upon the *practical application* of T/A in a discretionary sence which could lead people into investigation of ideas in a Systematic type level.

I will obviously have a bent towards what I think is the most benificial and wont be wasting time on superfluous Oscillators/Indicators which Ill leave to the reader to investigate.
I will touch on those I think are helpful in situations and happy to discuss and have input from others who use their favorites.

I would ask Joe for this to be a sticky thread much like Sir O's fundamental type thread.
It would be something that I would launch as time allows.

*Interest??* 

As I know it will take lots of time (Which I dont have spare).
If there is enough interest then Ill take the time over a few sessions to knock it up and get started. If not then will just post snippets here and there as per usual.

I think Charts and notations are best for visualizing practical application.
We could also run some test analysis live.

I will also touch on Position sizing and risk---if wanted.


----------



## tremmas

*Re: Learning Technical Analysis.*

Tech/a,

Your knowledge and experience is always appreciated.

I'd definitely like to see a tech/a Technical Analysis crash course if you have the time.


----------



## jimmyizgod

*Re: Learning Technical Analysis*

i'd be interested tech/a, always find your posts informative.


----------



## boofis

*Re: Learning Technical Analysis*

I'm definitely very keen !


----------



## pixel

*Re: Learning Technical Analysis*



jimmyizgod said:


> i'd be interested tech/a, always find your posts informative.



 +1
The simpler the better, as long as I can verify that it works - and why!


----------



## Julia

*Re: Learning Technical Analysis*

+2.  If you include strategies for managing this current market, that would be interesting and useful.


----------



## Testpilot

*Re: Learning Technical Analysis*

+3

Tech, I've always read your posts on systems development and VSA with interest  so I'd be interested in learning from you.


----------



## marioland

*Re: Learning Technical Analysis*

+4
It would be awesome if you could do it, tech/a!


----------



## Billyb

*Re: Learning Technical Analysis*

+5!


----------



## Gunslinger

*Re: Learning Technical Analysis*

+1 for me too.
If I can help by coding (in AmiBroker) or testing anything then I'm happy to lend a hand too.

Cheers,
JB


----------



## snsdmonkey

*Re: Learning Technical Analysis*

+1

Cheers


----------



## lindsayf

*Re: Learning Technical Analysis*

yep certainly interested techa


----------



## RandR

*Re: Learning Technical Analysis*

sounds great tech/a.

Ive actually introduced my first piece of technical analyst into my fundamental based investment approach in the last few weeks, so looking forward to some of the insights shared in this thread. 

(atm my sole piece of technical analysis being utilized is simply 100 day Moving Average to help me find better entry points into my fundamentally weeded stocks.)

Honestly ... I think position sizing and risk deserves an entire thread of its own, simply touching on it doesnt really do it justice imo.

Would love to hear some insights on analysing levels of support and resistence. (slowly learning through VSA over the past month or so has really piqued my interest in S&R.)


----------



## chriscarman

*Re: Learning Technical Analysis*

I always read your posts with a lot of interest tech, and had considered sending you a PM but figured you must get so many already that it would be rude to further impose hehe

so if a +1 from a noob counts, i would definitely like to see this


----------



## Logique

*Re: Learning Technical Analysis*



tech/a said:


> ...My view is most people turn a very simple methodology into a more complex one under the guise that the more complex must be the more successful.
> Thats plain wrong in my view. Very valuable and indeed profitable T/A can be applied very simply...



Never a truer word spoken Tech, and I hope your students will not forget this.


----------



## kermit345

*Re: Learning Technical Analysis*

+1 from me as well. Even though I take more of a fundamental approach, definitely interested in your T/A views tech as you clearly know what your doing and I always enjoy expanding my knowledge base, particularly in relation to stocks.


----------



## alexc2005

*Re: Learning Technical Analysis*

Love to know more about this!!


----------



## Nortorious

*Re: Learning Technical Analysis*

I'd love to learn from your insights Tech/a.

Thanks in advance


----------



## Sir Osisofliver

*Re: Learning Technical Analysis*

Hi Tech,

Love to see what you come up with...would you object to other's like myself participating/adding?

I only ask because my experience tells me that what I see as useless, others find meaning due to their different learning styles. Happy to participate where I think I can add something.

Cheers

Sir O


----------



## Julia

*Re: Learning Technical Analysis*



Sir Osisofliver said:


> Hi Tech,
> 
> Love to see what you come up with...would you object to other's like myself participating/adding?
> 
> I only ask because my experience tells me that what I see as useless, others find meaning due to their different learning styles. Happy to participate where I think I can add something.
> 
> Cheers
> 
> Sir O



Isn't that going to turn it into yet another discussion thread, of which we already have quite a few?
No disrespect intended, Sir O, but what I'm hoping Tech has in mind is a "from scratch", step by step, understanding of the basics of TA.
When I first started, I'd have really valued something like that.

My concern with other very experienced people offering different strategies/techniques would be that the thread would evolve into a sophisticated exchange between experts, thus leaving the beginners well behind and out of their depth.


----------



## cynic

*Re: Learning Technical Analysis*



tech/a said:


> My view is most people turn a very simple methodology into a more complex one under the guise that the more complex must be the more successful.
> 
> Thats plain wrong in my view. Very valuable and indeed profitable T/A can be applied very simply.




So true.



Julia said:


> +2.  If you include strategies for managing this current market, that would be interesting and useful.




Although I do share your confidence in Tech/A's immense capability, I believe that he is proposing to offer technical analysis here. The practice of magic and miracles belongs in a thread all of its own.

Having said that, I'm sure we'll all be able to benefit from seeing what Tech/A pulls out of his impressive trading arsenal.


----------



## tech/a

*Re: Learning Technical Analysis*

*Sir O and Julia*




Sir Osisofliver said:


> Hi Tech,
> 
> Love to see what you come up with...would you object to other's like myself participating/adding?
> 
> I only ask because my experience tells me that what I see as useless, others find meaning due to their different learning styles. Happy to participate where I think I can add something.
> 
> Cheers
> 
> Sir O






Julia said:


> Isn't that going to turn it into yet another discussion thread, of which we already have quite a few?
> No disrespect intended, Sir O, but what I'm hoping Tech has in mind is a "from scratch", step by step, understanding of the basics of TA.
> When I first started, I'd have really valued something like that.
> 
> My concern with other very experienced people offering different strategies/techniques would be that the thread would evolve into a sophisticated exchange between experts, thus leaving the beginners well behind and out of their depth.




My intention is to leave this thread open as a discussion thread which can go where ever it leads. I have asked that Q&A be added to this threads heading.

I have asked Joe for the _Learning Technical Analysis and Practical Application _to be made a sticky and I ask that 

ALL DISCUSSION be on THIS THREAD. *Not the STICKY*!

When I get going

I dont want the thread to be lost in disjointed discussion---it will need to have a continuity.

Ill be presenting what I personally believe to be the most important and simplest use and Application of technical analysis.The way I apply it and trade it. *In this and any market.*

Beginning with Entry level and working toward implementation with real live trades----over time---win and lose.
_Codes wont be mentioned only price action I wont even disclose the price---dont have to._
After 20 yrs I know what works and why. It *WONT be *as others trade.

It will be the basics from which *ANYONE* can expand in anyway they wish.

It is *MY* holy Grail.(Not all of it but the bits that matter).


----------



## Chalea

tech/a said:


> My view is most people turn a very simple methodology into a more complex one under the guise that the more complex must be the more successful.
> 
> Thats plain wrong in my view. Very valuable and indeed profitable T/A can be applied very simply.
> 
> I will obviously have a bent towards what I think is the most benificial and wont be wasting time on superfluous Oscillators/Indicators which Ill leave to the reader to investigate.




Dear tech/a

I have to admit I'm amazed by what you have said here.

To be rubbished by Fundamental Analysis followers is expected but your analysis/condemnation on  this thread  highlights the fact that your method is not perfect.

If anyone is interested in the basic/simple/effective use of oscillators & chart patterns you should read the above linked thread from that point to the present and judge for yourself if their use is a waste of time...


----------



## tech/a

I only have one person set to ignore
That's you.
I have no interest in anything you have to say and will not be taking you off ignore.
It's there for a reason and I choose to use it.
I suggest you place me on the same.


----------



## Chalea

tech/a said:


> I only have one person set to ignore
> That's you.
> I have no interest in anything you have to say and will not be taking you off ignore.
> It's there for a reason and I choose to use it.
> I suggest you place me on the same.




Dear tech/a

I had hoped your attitude had softened recently as you keep replying to my posts...

I hope over the coming months as we share our opinions here that this thread will act as a bridge building exercise between us,

Regards


----------



## boofis

On behalf of everyone who's genuinely interested in gaining a greater understanding of T/A; 
Could anyone who already 'knows what works' please piss off and earn your millions in the market using all your knowledge instead of posting in a beginner T/A thread to prove that you know what works and what doesn't...
Too much? But seriously, we're here to learn, so just *"listen"* for a little bit and resist all urges to write. 
Pretty please lol.


----------



## lindsayf

I very much support techa's plans to present HIS view of TA.  The trading world is overflowing with almost infinite competing ideas ( valid or not, and mainly not) - a key factor that makes finding your way as hard as it is.  For me to get the most from techa's contribution I wont be looking seriously at those arguing with what he presents.  We are mostly convinced that he knows a bit about trading (yes?) so I just hope this ( and the other) thread can be a place where some of that knowledge can be clearly presented without too much input from internet contrarians.


----------



## Joe Blow

This thread is for Q&A on tech/a's technical analysis thread. It is for those who are geniunely interested in the topic and who would like to ask questions and participate in the discussion in a constructive way.

Those who wish to provoke others or disrupt the thread should please refrain from posting.

Any off-topic posts or posts intended to provoke others will be removed from the thread.


----------



## pixel

lindsayf said:


> I very much support techa's plans to present HIS view of TA.  The trading world is overflowing with almost infinite competing ideas ( valid or not, and mainly not) - a key factor that makes finding your way as hard as it is.  For me to get the most from techa's contribution I wont be looking seriously at those arguing with what he presents.  We are mostly convinced that he knows a bit about trading (yes?) so I just hope this ( and the other) thread can be a place where some of that knowledge can be clearly presented without too much input from internet contrarians.



 +1
I hope tech/a reconsiders and does go ahead with his educational blog.
Although not a beginner in the generally accepted sense, I do like to read others' ideas; more often than not, I find enough food for thought to improve my results.

*To all true beginners:*
Do take note of his teachings: Tech/a may not be the only teacher, but IMHO is as good as you'll find, and he offers a rational approach to a complex issue in a way that delivers consistent results. Ignore his detractors' polemic attacks; at this stage, their arguments will only confuse you. After a year or five of studying, you will be able to judge for yourself.

PS Joe: ours crossed. I hope an endorsemtn of the principles is still OK


----------



## pavilion103

lindsayf said:


> I very much support techa's plans to present HIS view of TA.  The trading world is overflowing with almost infinite competing ideas ( valid or not, and mainly not) - a key factor that makes finding your way as hard as it is.  For me to get the most from techa's contribution I wont be looking seriously at those arguing with what he presents.  We are mostly convinced that he knows a bit about trading (yes?) so I just hope this ( and the other) thread can be a place where some of that knowledge can be clearly presented without too much input from internet contrarians.




+1 also


----------



## pavilion103

Tech, in the locked thread, you mentioned in the 2nd post that it's important to look at both the stock and its index. 

I've asked before on this forum and the advice I have been given is that comparing a stock's strength to its parent index isn't as worthwhile in the Australian market, compared to say, the US. 
Would we compare the strength/weakness of stock simply to the All Ords in the Australian market? Or do you still believe each stock is able to be effectively compared to its parent index?

Thanks.


----------



## tech/a

pavilion103 said:


> Tech, in the locked thread, you mentioned in the 2nd post that it's important to look at both the stock and its index.
> 
> I've asked before on this forum and the advice I have been given is that comparing a stock's strength to its parent index isn't as worthwhile in the Australian market, compared to say, the US.
> Would we compare the strength/weakness of stock simply to the All Ords in the Australian market? Or do you still believe each stock is able to be effectively compared to its parent index?
> 
> Thanks.




In general terms we want to know if the stock we are trading is pushing up stream in a fast flowing river.Or if the river is calm and waiting to move off.
Or the river is flowing in the direction we are trading.

I dont know about you but Ive always found going with the river much easier.
Apologies to Wyckoff who uses River analogies!

What youll find in the END hopefully is an intergrated picture which becomes auto pilot when trading in a discretionary manner.
My stock Radar has only just flicked,as Im seeing consistent common patterns in many stocks---to the bullish side. Ive been/am index trading for months.


----------



## pavilion103

tech/a said:


> In general terms we want to know if the stock we are trading is pushing up stream in a fast flowing river.Or if the river is calm and waiting to move off.
> Or the river is flowing in the direction we are trading.
> 
> I dont know about you but Ive always found going with the river much easier.
> Apologies to Wyckoff who uses River analogies!
> 
> What youll find in the END hopefully is an intergrated picture which becomes auto pilot when trading in a discretionary manner.
> My stock Radar has only just flicked,as Im seeing consistent common patterns in many stocks---to the bullish side. Ive been/am index trading for months.





But are we comparing the strength of the stock to its particular sector e.g. energy, financials... or to the All Ords? Or both?


----------



## banco

Tech,


Given the difficulties associated with shorting ASX stocks is it generally best to not to bother trading them unless the broader market is in an uptrend (or at least isn't in a down trend)?


----------



## tech/a

pavilion103 said:


> But are we comparing the strength of the stock to its particular sector e.g. energy, financials... or to the All Ords? Or both?






The index XJO.




> Given the difficulties associated with shorting ASX stocks is it generally best to not to bother trading them unless the broader market is in an uptrend (or at least isn't in a down trend)?




For longer term you will be frustrated generally if the market as a whole is being contained in a corrective phase as it is now and was back in 87
Good shorter term and in some cases medium term moves can give excellent profit.
The trick is to continually minimize loss and maximize profit--- to the best of our ability


----------



## tech/a

I dont know how often I see this in the Fundamental section.
Im sure you all have seen similar.

_*I'm not saying *_Fundamental analysis doesnt have its place but there are many many traders out there who make very poor decisions and who would benifit (if they became proficient) in a trading method which took out the uncertainty and replaced it with confidence in Risk allocation and profit potential.

This is what I hope to be able to achieve on these threads.

*This from Today.*


----------



## pma99

Tech/a

I've just found this thread and it's fairly simple for me - you make money from trading and I don't - nothing really to decide.

I will be following with great interest.

Cheers

Paul


----------



## Starcraftmazter

Interested.


----------



## Logique

Tech,
don't be put off by any differences on this thread. I understand you were going to run the TA course progressively on the locked thread, so just carry on regardless, it's clear there are plenty interested.


----------



## tech/a

Logique said:


> Tech,
> don't be put off by any differences on this thread. I understand you were going to run the TA course progressively on the locked thread, so just carry on regardless, it's clear there are plenty interested.




Yes I'll add as I get time.


----------



## Julia

Tech, on your locked thread, could you expand on the "Enter here" not "Here" points?

This is an area I have some difficulty with.  Easy enough to see in hindsight, of course, but I'm often unsure about it in real time.

With thanks.


----------



## tech/a

Julia said:


> Tech, on your locked thread, could you expand on the "Enter here" not "Here" points?
> 
> This is an area I have some difficulty with.  Easy enough to see in hindsight, of course, but I'm often unsure about it in real time.
> 
> With thanks.




Thats the plan Julia.

We are getting to the meaty bit.
But you cant get into a topic like T/A without taking care of the foundation.

If we just belt into it it will be like opening a shop for business without first establishing if there is a market!! 

So as most businesses fail and so do most traders best we do it properly!


----------



## noirua

ASF needs your vote and analysis on the voting situation: http://www.thebull.com.au/the_stockies/forums.html

Favourite forums vote this weekend.


----------



## tech/a

noirua said:


> ASF needs your vote and analysis on the voting situation: http://www.thebull.com.au/the_stockies/forums.html
> 
> Favourite forums vote this weekend.




Every month it's different just another suck in.
ASF has led many times.
We are all bigger than that here.


----------



## pavilion103

I'm enjoying the thread to so far Tech. With the large amounts of help you have given me personally, I can see the shape the thread is taking and cannot wait. Highly recommend to anyone.


----------



## DB008

Great thread tech/a

Do you use Bollingerbands at all?


----------



## tech/a

No Danny.
I'll be posting a bit more today.


----------



## DB008

Thanks for the reply.
I await with anticipation.


----------



## tech/a

Ill post it up when Joe Unlocks the Thread.
He must be doing other things this morning.


----------



## Timmy

Not a Q or an A, just a big thumbs up for tech. 
You are putting a lot of work into the thread tech, and its great.

I urge people reading tech's thread (& this one) to give it a 5 star rating.


----------



## DocK

Another thumbs up, Tech. 

Always interested in how others do it.  Look forward to future instalments and real chart demonstrations.  Thanks for your effort.


----------



## Trex123

What does it means if a stock is below 50MA ?
Is it a downtrend?


----------



## tech/a

Trex123 said:


> What does it means if a stock is below 50MA ?
> Is it a downtrend?




Could be In a lower time frame 
Could be ranging in a higher time frame


----------



## Trex123

tech/a said:


> Could be In a lower time frame
> Could be ranging in a higher time frame




What else do I need to look at for confirmation of up or downtrend ?


----------



## tech/a

Higher highs higher lows
If it's not clear when looking at a chart then chances are it's not in a trend
Better question
How can I determine a possible change of trend

Stay tuned!


----------



## Trex123

tech/a said:


> Higher highs higher lows
> If it's not clear when looking at a chart then chances are it's not in a trend
> Better question
> How can I determine a possible change of trend
> 
> Stay tuned!




Yes pls


----------



## pavilion103

Tech, are you going to be discussing gaps in more detail as the thread progresses? If it is will this still be some time away?

It is one area that I haven't given much consideration to as yet.


----------



## tech/a

pavilion103 said:


> Tech, are you going to be discussing gaps in more detail as the thread progresses? If it is will this still be some time away?
> 
> It is one area that I haven't given much consideration to as yet.




Yes.
My planned program is the introduce the "tools" so those who are beginners have enough knowledge to understand the application of the analysis.

I'll be discussing trades I'll be taking or in the process of analyzing 
Those charts will not have a code or price attached. I'll disclose them at the end of he trade win lose or draw. Frankly I don't want my trades followed this is about how I trade not what I trade.
Other charts will be discussed in hind site those charts will be disclosed.

As the market is in a consolidation phase I thought I'd start with trading consolidations.


----------



## nulla nulla

tech/a said:


> Ill post it up when Joe Unlocks the Thread.
> He must be doing other things this morning.




For ease of swinging between the Q&A thread (this one) and the "Sticky", is there any way of providing a link? or have I missed the link?


----------



## tech/a

nulla nulla said:


> For ease of swinging between the Q&A thread (this one) and the "Sticky", is there any way of providing a link? or have I missed the link?




I just open the forum area.
I suppose I could put the link at the foot of my posts.




Ill see if I can get it working.


----------



## tech/a

test.

Amazing even a duck can do it.


----------



## DB008

Trex123 said:


> What does it means if a stock is below 50MA ?
> Is it a downtrend?




Can we analyse this chart - BHP - as an example? I am not trading this stock, just want to get an example of using T/A. 

50EMA and 2 trend lines drawn in. SP is below the 50EMA.
Triangle forming, can it be determined if there will be a breakout, by looking at this chart?


----------



## nulla nulla

tech/a said:


> I just open the forum area.
> I suppose I could put the link at the foot of my posts.
> 
> View attachment 45237
> 
> 
> Ill see if I can get it working.




Thanks


----------



## kermit345

Basically i'm pretty terrible at techincals and want to learn as much as I can from Tech/a's thread. One of the stocks I currently own is MML and its been sold down pretty heavily of late. There was a small downgrade in this years output due to upgrades on mine site to increase production in the future. This coupled with a top holder selling down some of there position has put selling pressure on the stock from what I can tell. I think the future is bright and they will be well above current prices at some stage, but thats my fundamental view.

From a technical view i've posted the following chart to see if i'm on the right track about how things could play out from here. If it were to play out as i've shown below would it be considered a buy and likely to move back towards the $8+ mark. Or am I dreaming and just looking at this the wrong way completely. The orange lines are what I considered may be resistance bands on the way down.

Thoughts/Comments?


----------



## tech/a

kermit345 said:


> Basically i'm pretty terrible at techincals and want to learn as much as I can from Tech/a's thread. One of the stocks I currently own is MML and its been sold down pretty heavily of late. There was a small downgrade in this years output due to upgrades on mine site to increase production in the future. This coupled with a top holder selling down some of there position has put selling pressure on the stock from what I can tell. I think the future is bright and they will be well above current prices at some stage, but thats my fundamental view.
> 
> From a technical view i've posted the following chart to see if i'm on the right track about how things could play out from here. If it were to play out as i've shown below would it be considered a buy and likely to move back towards the $8+ mark. Or am I dreaming and just looking at this the wrong way completely. The orange lines are what I considered may be resistance bands on the way down.
> 
> Thoughts/Comments?
> 
> View attachment 45274




*Kermit.*
This has shown a very strong reversal today and the low of today would be the Stop.
I can go into more analysis tonight if you like its a classic.


----------



## kermit345

Whether it is a classic or not is probably not really for me to say as my knowledge on technical analysis is very limited on comparison to yours and others.

So what your saying is that the low of today would be the stop and possibly if you saw a continuation of the reversal tomorrow thats where you may buy in?

Would definitely be interested in your further analysis as it looked like a good example of a stock falling quickly past initial resistance to a point where it could consolidate and reverse or continue free-fall. Obviously as I hold the stock I have some personal interest but i'm extremely interested in the technical view of what has played out and what the future may hold etc.

I feel like I can identify trends, resistance etc ok as they happen but lack the understanding of what they mean, why it has happened and where it can go from here.

Happy to either discuss here for everyones value or via PM as well Tech/a.

Cheers


----------



## tech/a

tech/a said:


> *Kermit.*
> This has shown a very strong reversal today and the low of today would be the Stop.
> I can go into more analysis tonight if you like its a classic.




Just a quick couple of charts




You can see clearly where the buyers jumped in on this 5 min chart




*This is likely to struggle through the resistance seen at this level.
Its clear on the 5 min chart.
How it reacts (Price) to this level will tell a lot.
Resistance---its not done exhausting yet.
Powers through resistance---renewed buying.*


----------



## skyQuake

The 100k on the bid was pretty active too. Moving up price levels trying to get filled.
Once that started going the buy side kept refreshing anything that got taken out


----------



## tech/a

skyQuake said:


> The 100k on the bid was pretty active too. Moving up price levels trying to get filled.
> Once that started going the buy side kept refreshing anything that got taken out




WDR
NST
Both similar today both bought.

Lots of reversals heralding a positive day tomorrow
FTSE DAX and DJIA Futs up


----------



## explod

tech/a said:


> WDR
> NST
> Both similar today both bought.
> 
> Lots of reversals heralding a positive day tomorrow
> FTSE DAX and DJIA Futs up




On looking at the one day two year chart for NST I find it interesting the number of times it has retraced each new move up.  And yes a classic today with the gap closed right on the spot.

However, we will see.


----------



## tech/a

tech/a said:


> WDR
> NST
> Both similar today both bought.
> 
> Lots of reversals heralding a positive day tomorrow
> FTSE DAX and DJIA Futs up




Maybe so.
But the entries are ( in my view) low risk nice R/R
So in we go


----------



## pavilion103

tech/a said:


> Maybe so.
> But the entries are ( in my view) low risk nice R/R
> So in we go




Do you think a wise entry last night (for EOD trading) would have been placing a buy-stop one tick above the close of the 23/11 bar on each of those?

In the VSA Club webinar it was suggested that often it is better to enter on a buy-stop like this, rather than entering on the close of the 23/11 because often the trade can go in the opposite direction the following day.


----------



## ggumpshots

Starcraftmazter said:


> Interested.




Also very  interested in  Learning Technical Analysis Q&A


----------



## tech/a

pavilion103 said:


> Do you think a wise entry last night (for EOD trading) would have been placing a buy-stop one tick above the close of the 23/11 bar on each of those?
> 
> In the VSA Club webinar it was suggested that often it is better to enter on a buy-stop like this, rather than entering on the close of the 23/11 because often the trade can go in the opposite direction the following day.




There are a myriad of entry techniques.
Yes a forward buy stop is one.
If you have a watch list you could place a buy stop at the close of the previous period (or 1 Tick above).Personally I like tighter stops.
As shown here.


----------



## kermit345

Tech/a,

I can see what you mean with NST looking similar over the past few days.

So at the moment it looks like MML hasn't finished exhausting at the $5.50 resistance yet, but looks set to do almost a perfect U shaped return to approx the $7.05 level. So by looking at the charts and based on what you've shown is my understanding correct:

Yesterday looked to be the pivot point of the downward selling pressure and would signal a reversal particularly once the buying has exhausted the selling resistance and there is a push through $5.50. This would set up the following trade:

- Buy now while still at the pivot point ready for leg up
- Have a stop at $5.13 (low set yesterday)
- Monitor progress to the $7.05/$7.06 mark as they were the closes made on the 8th and 9th of this month, if heavy resistance met at this point exit profitable trade?

Is that the correct thinking? It looks like its setting up pretty well as far as I can tell?


----------



## tech/a

Thats the plan.
Currently its put in a pivot low.
I expect that to be tested.


----------



## kermit345

Tech/a,

Looks like there are some early signs that the MML trade may be profitable. Will be interesting to see how the rest of this week plays out.

On the subject of your latest post - gaps. I known you like to trade the smaller cap stocks but I was looking at Woodside today and found the chart interesting. Has the action over the past 2 trading days (inclusive of today 25th and 28th) been possibly filling the gap from the 5th/6th of October? I know your examples were in relation to the days following the gap but was just interested in this scenario.

If today's volume remains relatively light compared to the last few trading days would you suggest that it could turn positive and possibly look at making an entry with a stop of $32.15? The only concern that i'm not sure about is the fact that while the gap looks to be filled, today it opened higher but is still down quite a bit, but is that less concerning given the lighter volume?

Cheers


----------



## DB008

Hi tech/a,
I noticed that you mentioned last week in this thread that the Dow futures were up, DAX up and the FTSE up too (I think, from memory). The next morning; asx200 drifted lower. Opposite to even what l was thinking. 

I often look at the futures markets to try to get an indication of where the markets might be heading, however, l take it with a pinch of salt. 

Do the futures markets (overseas) ever have an effect on an order or do you just use it as a indicator/quick glance?


Found it, post 69 in this thread;


> Lots of reversals heralding a positive day tomorrow
> FTSE DAX and DJIA Futs up


----------



## tech/a

MML Update




*



			Do the futures markets (overseas) ever have an effect on an order or do you just use it as a indicator/quick glance?
		
Click to expand...


*
It has me looking in the direction of the index
EG tonight Im looking for and finding Bullish trades and corrective set-ups on the FTSE.
But each trade must stand on its own.
If its clear the market doesn't agree with an indication from O/S then I dont force it!

*WPL*
Clearly bearish.


----------



## tech/a

*MML*

Classic---as expected.






*1HR Chart*


----------



## explod

Well I know you could not care less about the fundamentals tech but two broker reports have a price target of around $8.50 for this (MML) down the track a bit.

I like the reverse hammer on the daily a few days back with confirmation in todays rise.

Tell me if I am off topic on this thread too.


----------



## tech/a

explod said:


> Well I know you could not care less about the fundamentals tech but two broker reports have a price target of around $8.50 for this (MML) down the track a bit.
> 
> I like the reverse hammer on the daily a few days back with confirmation in todays rise.
> 
> Tell me if I am off topic on this thread too.




You know I dont know how many times Ive been in a stock and some fundamental news belts it in the direction of the analysis.
All I can put it down to is the price action reflects the sentiment.


----------



## Boggo

tech/a said:


> You know I dont know how many times Ive been in a stock and some fundamental news belts it in the direction of the analysis.
> All I can put it down to is the price action reflects the sentiment.




Agree, which came first, the chicken or the egg, the chart or the news.
An example a few days ago was CDU where it got my attention as it approached $3.40 and then the news kicked in and drove it along.

CDU down a bit today with that sector but adds to your theory tech/a.


----------



## tech/a

I remember YOGI used to amuse me with his Astro stuff.

But often a stock would have this news SPOT on the day YOGI 'Predicted"
only problem was that it wasnt regular enough to trade---but regular enough to have me shacking my head!


----------



## namrog

tech/a said:


> You know I dont know how many times Ive been in a stock and some fundamental news belts it in the direction of the analysis.
> All I can put it down to is the price action reflects the sentiment.




Or , and, sometimes price action reflects insider knowledge / trading....?


----------



## tech/a

namrog said:


> Or , and, sometimes price action reflects insider knowledge / trading....?




Maybe.
Momentum certainly gets going early!
Quick rises dont occur in every instance but they do occur.


----------



## DB008

namrog said:


> Or , and, sometimes price action reflects insider knowledge / trading....?




I've noticed that with ROG. Little gas exploration spec stock. The share price is down in the doldrums. However, it 'usually' spikes a few days before a company announcement, then retreats a few days after. 

Great thread(s) tech/a. Please keep up the good work, l am enjoying reading your posts.


----------



## pixel

DB008 said:


> I've noticed that with ROG. Little gas exploration spec stock. The share price is down in the doldrums. However, it 'usually' spikes a few days before a company announcement, then retreats a few days after.



Years ago, I remember another little oiler that would usually get a big p&v spike around Christmas and early in the New Year, then peter out lower over the weeks after. A friend "in the know" explained to me how that happened: The drill crews would come home for a Christmas break; as you do, they'd attend lots of BBQs. ... and talk ... and their stay-at-home mates would listen ... and believe every word.
Great job if you can get it :



> Great thread(s) tech/a. Please keep up the good work, l am enjoying reading your posts.



 +1


----------



## TMC93

Great threads tech/A, especially for someone new to shares it helps explain the possible strategies and techniques.


----------



## Monkeyzu

Hi tech, just finished reading through your locked sticky with interest - looking forward to your future additions. 2 quick questions: what would you consider an average wage, and what capital do you need to need to make that in a year? Or, what is your average roi % pa?


----------



## tech/a

Monkeyzu said:


> Hi tech, just finished reading through your locked sticky with interest - looking forward to your future additions. 2 quick questions: what would you consider an average wage, and what capital do you need to need to make that in a year? Or, what is your average roi % pa?




Firstly I dont trade for a living.
An Average wage is around $70K in my view---others would disagree.
A very good trader maybe able to make that with $300K
An average trader around $700K.
Maverick could do it with $100K but could also lose the lot!

Wont be posting a great deal up.
Much more important things on the agenda.
Ill be back---eventually.


----------



## Monkeyzu

tech/a said:


> Wont be posting a great deal up.
> Much more important things on the agenda.
> Ill be back---eventually.




That's a pity! Was looking like the thread alot of us newbies had been waiting for! 

Maybe you answer another question? The 'master the markets' type VSA is all about 'smart money'. When you say 'look at what the price is trying to do' is 'price' interchangeable with 'smart money'? Or do you have a different interpretation of VSA altogether? How does this fit in with small caps where MTM VSA would suggest big trading houses would not operate due to overall low volumes being traded?


----------



## pavilion103

Does anyone know what is happening with this thread? Is Tech/a away? Is it not continuing?
I haven't really been on here for a few weeks.


----------



## joea

pavilion103 said:


> Does anyone know what is happening with this thread? Is Tech/a away? Is it not continuing?
> I haven't really been on here for a few weeks.




Just be a little patient please!
Tech/a is looking after some family issues at present.
joea


----------



## tech/a

Thanks Joea---apreciated.

All good on the home front tests for (Princess) came back benign and when it comes to liver thats a good thing.Economic downturn has meant I have downsized my Company and as such im much busier.Im also starting to develope low density apartments once again with one on the drawing board.---well a few builders are beating their brains out for the work!

Ive had a few mails from people who look at the site rather than post.
Many of those I know just visit to have a gander---they dont need to be educated.
without exception they cant understand why I would bother with this exercise.

I am tending to agree with them.
It takes ages attracts some very genuine people but more leaches who "dont and never will get it!" so why would I.

I have already (a few weeks ago) mentioned to Joe that I may put out a course or so in various modules---very much an idea and Im not certain I will be bothered. Most are aware Im working on some stuff with Kris which would Im sure have a captive audience.

 I think there is a demand for something like this and if I do it will look at putting it through here.

It appears to me people place a higher value on something that is not given away.
Anyway if I do it it will turn up here and will be reasonably costed in module form.

Dont hold your breath though!


----------



## Monkeyzu

For everyone waiting for this thread to return to life, can i suggest you pass some of the time by watching this BRILLIANT 2hour presentation by Nick Radge I've just stumbed on. Sorry if it's been posted elsewhere
Back to Basics of Trading
http://www.vimeo.com/19621172


----------



## tech/a

Monkeyzu said:


> For everyone waiting for this thread to return to life, can i suggest you pass some of the time by watching this BRILLIANT 2hour presentation by Nick Radge I've just stumbed on. Sorry if it's been posted elsewhere
> Back to Basics of Trading
> http://www.vimeo.com/19621172




May I suggest you take it in 30 min blocks and take notes.

*Hint*
Then you can digest and recap on the important pieces.
I make a time stamp note when I take a note so its easily referenced in the future.

Plenty of other good Vids to the right of the main screen.


----------



## Des P

How,s it going Tech/A i have been following your thread on learning Tech analysis, and i am enjoying immensely,
i have been trading only for the last twelve months, Fundamentally
And have decided to take the next step Technical analysis
Would it be possible to let me know the Tech analysis program you you use 
This would make it easier to follow you course (for me any way)
Or do you have any other  better option,s for a green hand hand
Cheers
Des


----------



## tech/a

Des P said:


> How,s it going Tech/A i have been following your thread on learning Tech analysis, and i am enjoying immensely,
> i have been trading only for the last twelve months, Fundamentally
> And have decided to take the next step Technical analysis
> Would it be possible to let me know the Tech analysis program you you use
> This would make it easier to follow you course (for me any way)
> Or do you have any other  better option,s for a green hand hand
> Cheers
> Des




DES
You'll find me posting various charts from various software.
Metastock
Tradeguider 
Advanced Get

You don't need any of these to at least follow the principals I discuss here.
Any software will do.
Amibroker is a great software--- I have that as well but am yet to get right into using it
Such little time.


----------



## joea

tech/a said:


> DES
> You'll find me posting various charts from various software.
> Metastock
> Tradeguider
> Advanced Get
> 
> You don't need any of these to at least follow the principals I discuss here.
> Any software will do.
> Amibroker is a great software--- I have that as well but am yet to get right into using it
> Such little time.



 Tech/a
I have assumed with your collection of software you have found that each specific software has a specialist area, or are you just curious?
Is it possible for you to equate the strengths of each software package please?
i.e. compare popular software with best features and list relative price.
If not price just the best features.
This may help new traders in their decision analysis. Or people interesting in upgrading to new software.

With Incredible Charts they have just upgraded to intraday charting.
The price is $220 for Premium I think.(cannot back test)
Where as some software have 20 minutes delayed and want another $1300 a year for intraday. Obviously in this situation two monitors would be helpful.

Basically one could assume you need at least two software packages.
If you do not have the time , do not bother.
joea


----------



## Des P

Thanks for the Info Tech/a
Understand, such little time
In the same boat
Cheers


----------



## Sir Osisofliver

Hi Tech,

Just wanted to say you are doing a great job in here. I feel your pain with the task at hand and I encourage you to keep it up...it was something that I was planning on doing with the newbie thread but ran out of time and motivation at the daunting task it presented.

There was something that I wanted to add to your material in relation to pivot points... something that took me a while to learn when I was starting out that I only learned because of my habit of reviewing successful and unsuccessful trades; no one every told me...but this is your show. Are you happy for me to post it here or would you like me to PM the commentary across to you so you can decide whether to include it or not?

Cheers

Sir O


----------



## tech/a

Sir Osisofliver said:


> Hi Tech,
> 
> Just wanted to say you are doing a great job in here. I feel your pain with the task at hand and I encourage you to keep it up...it was something that I was planning on doing with the newbie thread but ran out of time and motivation at the daunting task it presented.
> 
> There was something that I wanted to add to your material in relation to pivot points... something that took me a while to learn when I was starting out that I only learned because of my habit of reviewing successful and unsuccessful trades; no one every told me...but this is your show. Are you happy for me to post it here or would you like me to PM the commentary across to you so you can decide whether to include it or not?
> 
> Cheers
> 
> Sir O




Sir O
Anything you wish to add just go ahead.It maybe worth PMing
Me the info so I can have it put in the locked section--- that way it won't get lost.
If anyone has anything technical they think worth getting posted and locked just pm it to me and I'll get it organised

I've decided to simply to answer questions as they come up on the boards from posts by myself or questions from others.Or if I feel there is something that people should really be aware of.
It is by no means exhaustive. I'll only put up that which I feel is important
In the analysis. Many would want to add more--- personally I want to add less!


----------



## Lone Wolf

Sir Osisofliver said:


> *What is a soft pivot point? *This is where the *closing price* in the bar to the right of the pivot closes within the high low range of the pivot bar. This is normally accompanied by a volume indication and is indicative of a consolidation pattern (the stock moves sideways instead of retracing). The stock merely "rests" before continuing the established upward trend and is frequently accompanied by outside and inside bars. I frequently see a lot of traders exiting at this point, depriving themselves of valuable upside potential.
> 
> *What is a hard pivot?* This is where the*closing price* in the  bar to the right of the pivot closes *outside* the high low range of the pivot bar. These kinds of bars give a higher quality reference point for a retracement pattern as opposed to a consolidation pattern. I use a bollinger band with only a two day sample size to determine the size of the deviation from the pivot bar. Simply put, the higher the deviation from the pivot bar, the more likely the retracement pattern will emerge.




Sir O,

Did you update that correctly? The bar represents price movement, with the close of the bar representing the closing price. I don't believe your addition in red adds any more info compared to the original. 

I don't mean to tell you how to write, just want to make sure it's really what you meant to say. Thanks for your efforts by the way.


----------



## tech/a

Lone Wolf said:


> Sir O,
> 
> Did you update that correctly? The bar represents price movement, with the close of the bar representing the closing price. I don't believe your addition in red adds any more info compared to the original.
> 
> I don't mean to tell you how to write, just want to make sure it's really what you meant to say. Thanks for your efforts by the way.




Yes it does.

Defines Soft and Hard Pivots from the Pivot description.



> What's a pivot point? A pivot is a minimum three bar structure where the middle bar (the pivot bar) has a higher high and higher low than the bar on either side. (For a high turning pivot - the reverse is true for a low turning pivot).




Sir "O" 
Didnt take long eh!


----------



## Sir Osisofliver

@ Tech I was busy and distracted. Perhaps I should change my sign off to Sir "Doh"

@ Lone  OHLC (Open High Low Close) It's the *close* which is arguably the most critical of the four data points, and this is the determinant I use to distinguish hard and soft pivot points. Closes within the HIGH LOW range of the pivot bar = SOFT. Closes outside the HIGH LOW range of the pivot = HARD. The larger the differential between the pivot range and the closing price of the confirming bar = the harder the pivot and the greater the certainty.  

This is easily visible in spike reversals or candlestick shooting stars, very high probability involved in those formations. I've got another example to the one I placed in Tech's thread. This is one that was more difficult to read and I took less out of it than I should have....but my rules still kept me in profit. It's and FLT Long - I'll chart it up later if I get time.

Cheers

Sir O


----------



## Sir Osisofliver

Here's how the AWE trade played out...




Held it since Late January, out in Late March, back on the watchlist it goes.

Cheers

Sir O


----------



## kid hustlr

Sir O,

Obviously I'm late to the party here so apologies for re-hashing.

With regards to the AWE trade, after your initial entry there were several 'high' hard pivots which occurred. I note that you used these to form your trendlines.

Why did these pivot points not generate sell signals? Why did you choose to enter the trade on a hard pivot low but these hard pivot highs did not cause you to sell?

Does the hard pivot low hold more weighting??!


----------



## Newt

More please?!

There were some great posts in both threads.  Really short term trades has always scared the heck out of me, but the price action posts in here ring true.  Loved the inside bar post for example.

Realise it take time to post.  Can anyone recommend good sites or books for VSA/Price action education?


----------



## tech/a

Newt said:


> More please?!
> 
> There were some great posts in both threads.  Really short term trades has always scared the heck out of me, but the price action posts in here ring true.  Loved the inside bar post for example.
> 
> Realise it take time to post.  Can anyone recommend good sites or books for VSA/Price action education?




http://www.tradeguider.com/mtm_251058.pdf

Plenty here
Worth finding a color printer and printing it off and binding it up.


----------



## Newt

tech/a said:


> http://www.tradeguider.com/mtm_251058.pdf
> 
> Plenty here
> Worth finding a color printer and printing it off and binding it up.




Thanks Tech - will check it out


----------



## Craton

Thank you tech/a and Sir O for both taking the time and having the want to enlighten and educate.

I've always been amused at the Fundamental v Technical argument and more so as to why one would follow/adhere to one over the other. Of greater interest to me is seeing the way that a stock with what appears to have decent fundamentals, how it can be so brutally punished by the market for no apparent reason. The T/A threads have proven invaluable in understanding the mechanics behind this move when logic would dictate otherwise.

That being so, I've come to appreciate even more so the work that tech/a and Sir O have done here within ASF. The posts, the links, the PDF's, the replies et al, have sparked a great interest in learning more about what the chart is telling me. Of course I understand that the chart, any chart on it's own isn't the be all, end all (thinking black swan events here) but gee, what a picture it paints!

Thanks again for the info, the chance to learn at my own pace and best of all, the free impartation of knowledge. Now that's brilliant!

Cheers.


----------



## BossMan.

tech/a said:


> I recieve a number of emails from people who are looking for guidence and specific information with regard to T/A.
> 
> Most are at entry level.
> Many seem to want to be able to use T/A but have no idea how to apply it.
> 
> The subject is infinately variable and not something I want to try and plough through over months if not years.
> 
> *BUT*
> My view is most people turn a very simple methodology into a more complex one under the guise that the more complex must be the more successful.
> 
> Thats plain wrong in my view. Very valuable and indeed profitable T/A can be applied very simply.
> 
> Im wondering if there is an intrest in some introductory level T/A being posted by myself based upon the *practical application* of T/A in a discretionary sence which could lead people into investigation of ideas in a Systematic type level.
> 
> I will obviously have a bent towards what I think is the most benificial and wont be wasting time on superfluous Oscillators/Indicators which Ill leave to the reader to investigate.
> I will touch on those I think are helpful in situations and happy to discuss and have input from others who use their favorites.
> 
> I would ask Joe for this to be a sticky thread much like Sir O's fundamental type thread.
> It would be something that I would launch as time allows.
> 
> *Interest??*
> 
> As I know it will take lots of time (Which I dont have spare).
> If there is enough interest then Ill take the time over a few sessions to knock it up and get started. If not then will just post snippets here and there as per usual.
> 
> I think Charts and notations are best for visualizing practical application.
> We could also run some test analysis live.
> 
> I will also touch on Position sizing and risk---if wanted.



Hey Tech, found your thread really interesting even though I came across it 10 years late. i am sure it is all still extremely relevant, I am wondering what software you tend to use for analysing charts? Do you use the web based trading tool most banks offer on your trading accounts? Or have you installed/purchased some software for analysing the charts?

Curious to know apologies if you mentioned this on your thread.


----------



## tech/a

Amibroker for Charts,Searches and basic stuff 
Interactive brokers for Realtime
Python  based proprietary software for system design.


----------

