tech/a
No Ordinary Duck
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- 14 October 2004
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Hi.
Technical analyisis is the study of price action.
There are many ways to study price action here are a few.
Bar charts,Candlesticks, Point and Figure,Steidelmayer,Renko,Kangi.
Oscillators(RSI,Williams,Stochastic,MACD etc),Indicators,Fibonacci,Time and Price analysis (Gann--Elliot)
Pattern recognition (Triangles,Flags,ledges,Rectangles(Including Darvas),Head and shoulders,diamonds,broadening tops and bottoms(Go on a diet!!)wedges and then simply the bars themselves(Open,High,Low,Close,Volume).
Initially Ill limit discussion and examples to the more common.
Indicators Oscillators and Bar Charts,pattern recognition and Bar analysis.
This will take sometime to work through and Ill be away again in early June till mid June.Ill also endeavour to give chart examples when explaining something.
The old picture says 1000 words.
Firstly Id like to have everyone understand the most common mistakes that occure using technical analysis.
(1) Incorrect use of an indicator---lack of understanding as to what it does.
(2) Using indicators and oscillators in the wrong context.The most common being looking for buy opportunities in a falling stock using OVERSOLD from an oscillator.(Oscillators are to be used WITH the prevailing trend---the only exception being Divergence with oscillator and price,Type A,B.or C).
(3) A signal from an oscillator means NOW----simply any oscillators signal means AROUND now unless proven otherwise.Think of it as a CIRCLE around a price area and not a DOT.
(4) Ocsillators and indicators are made up of PAST data and as such cannot be predictive.
(5) Signals remain valid for an infinite time.(There is a time when a signal is clearly wrong--- you must know when and take action).
(6) Analysis should start from monthly or weekly and move toward daily and then intraday.
(7) Over use of analysis.Many try to find Something,anything to justify their position---
(8)Price action DOESNT LIE.
For the purposes of education though I will start with Price bars and move out from there.
So things run smoothly Ill complete a topic and charts and post all at once this could take a while as time is scarce.My apologies.
Looking forward to discussion if there is anything specific please let me know and Ill answer it as we get to the relevant topic.You can private mail me if you wish.
TOPIC (1)
PRICE BARS---interpretation--reversals---gaps---volume
So if there are any specific questions to Price bars then lets hear them!
Im sure there will be some after the Price Bar module topic is posted.
Technical analyisis is the study of price action.
There are many ways to study price action here are a few.
Bar charts,Candlesticks, Point and Figure,Steidelmayer,Renko,Kangi.
Oscillators(RSI,Williams,Stochastic,MACD etc),Indicators,Fibonacci,Time and Price analysis (Gann--Elliot)
Pattern recognition (Triangles,Flags,ledges,Rectangles(Including Darvas),Head and shoulders,diamonds,broadening tops and bottoms(Go on a diet!!)wedges and then simply the bars themselves(Open,High,Low,Close,Volume).
Initially Ill limit discussion and examples to the more common.
Indicators Oscillators and Bar Charts,pattern recognition and Bar analysis.
This will take sometime to work through and Ill be away again in early June till mid June.Ill also endeavour to give chart examples when explaining something.
The old picture says 1000 words.
Firstly Id like to have everyone understand the most common mistakes that occure using technical analysis.
(1) Incorrect use of an indicator---lack of understanding as to what it does.
(2) Using indicators and oscillators in the wrong context.The most common being looking for buy opportunities in a falling stock using OVERSOLD from an oscillator.(Oscillators are to be used WITH the prevailing trend---the only exception being Divergence with oscillator and price,Type A,B.or C).
(3) A signal from an oscillator means NOW----simply any oscillators signal means AROUND now unless proven otherwise.Think of it as a CIRCLE around a price area and not a DOT.
(4) Ocsillators and indicators are made up of PAST data and as such cannot be predictive.
(5) Signals remain valid for an infinite time.(There is a time when a signal is clearly wrong--- you must know when and take action).
(6) Analysis should start from monthly or weekly and move toward daily and then intraday.
(7) Over use of analysis.Many try to find Something,anything to justify their position---
(8)Price action DOESNT LIE.
For the purposes of education though I will start with Price bars and move out from there.
So things run smoothly Ill complete a topic and charts and post all at once this could take a while as time is scarce.My apologies.
Looking forward to discussion if there is anything specific please let me know and Ill answer it as we get to the relevant topic.You can private mail me if you wish.
TOPIC (1)
PRICE BARS---interpretation--reversals---gaps---volume
So if there are any specific questions to Price bars then lets hear them!
Im sure there will be some after the Price Bar module topic is posted.
