Your favourite TA indicators for identifying an entry into a stock?

[gamefisherman]

I thought it might be a good idea for people to post their favourite TA indicators for identifying an entry into a ASX stock....(NOT SHORTING please), and what conditions must be met for you to enter. Time frame to hold can be for as little as a week or medium term..........

Please add in a chart to show an example if you can.

Please post:
1. What indicator/s you use, please provide details of if it is daily, weekly, or monthly chart/s or a check of all of them
2. Why you use this particular TA combination?
3. Do you double check the entry with another set of indicator/s and if so which ones?
4.Why do you use this particular combination?
5. When would you get out of the trade and why, which indicators would you use to confirm an exit, or would you have a predetermined profit that you would be happy with......

I would be most grateful to those who share their favourite system.....if possible so others like me who are still refining TA, please keep it as simple as possible.....

I hope that this post will be one where many including those already using TA and those hoping to gain more knowledge can come and look at the different ideas used by people, then be able to practice putting them into action and then making some $$$$$$.........

Thank you and I hope many contribute and many read.........In anticipation......best wishes

 

[lukeaye]

Re: what are your favourite ta indicators for identifying an entry into a stock?

I would be most grateful to those who share their favourite system.....if possible so others like me who are still refining TA, please keep it as simple as possible.....

I hope that this post will be one where many including those already using TA and those hoping to gain more knowledge can come and look at the different ideas used by people, then be able to practice putting them into action and then making some $$$$$$.........

Thank you and I hope many contribute and many read.........In anticipation......best wishes

Im sure you would be thankful. The thing is that sort of information is the sort of information you either need to;

(a) Pay for
(b) find yourself

You cant expect people who have done the hard work to give away their techniques for free.

Any information you receive for free will mostly probably be wrong.

Not trying to be a smart ass just stating the truth

 

[gamefisherman]

Re: what are your favourite ta indicators for identifying an entry into a stock?

Hi lukeaye

Thank you for you post. Yes you are right, this is the sort of information that you need to discover yourself............100% correct, hence this post.

However in relation to your overall post, imho there are multiple truths so there just might be some good people out there whom are interested in knowledge sharing which is what this website is all about. Its all about your own beliefs and character. There will be those who wish to share and others whom wish to not participate. And I respect that. If only a couple of posts are made and I and others are able to learn something then I think the consensus would be great, and people would be grateful for the shared knowledge and exchange of ideas.

Best wishes

Im sure you would be thankful. The thing is that sort of information is the sort of information you either need to;

(a) Pay for
(b) find yourself

You cant expect people who have done the hard work to give away their techniques for free.

Any information you receive for free will mostly probably be wrong.

Not trying to be a smart ass just stating the truth

 

[lukeaye]

Re: what are your favourite ta indicators for identifying an entry into a stock?

Hi lukeaye

However in relation to your overall post, imho there are multiple truths so there just might be some good people out there whom are interested in knowledge sharing which is what this website is all about.
Best wishes

The other common misconception is that you can just throw a strategy at anything and it will work.

I can give you a strategy, but unless you apply it in the right context, ie timeframe, stock, sector, indicie, trend so on you will never make it work.

You need to adapt your own strategy to your own dynamics. Nothing i tell you, or anyone else tells you is likely to help you if you don't know how to apply it.

 

[Wysiwyg]

Re: what are your favourite ta indicators for identifying an entry into a stock?

Im sure you would be thankful. The thing is that sort of information is the sort of information you either need to;

(a) Pay for
(b) find yourself

You cant expect people who have done the hard work to give away their techniques for free.

Any information you receive for free will mostly probably be wrong.

Not trying to be a smart ass just stating the truth

I agree Lukey. After exhaustive trials and errors I wouldn't reveal what works best for me.

 

[gamefisherman]

Here is one example of a trading system that I have worked through and are currently looking more into.............please see chart attached........

Cheers

 

[sammy84]

Gamefisherman that last system seem to purely be curve fitting. Good luck anyway with it, I hope you prove me wrong.

 

[lukeaye]

Here is one example of a trading system that I have worked through and are currently looking more into.............please see chart attached........

Cheers

As a simple long term investment tool i can't say it doesnt work. But try using that as a short term tool, using CFD's or options and watch yourself come undone.

You have to think, you are trying to take other peoples money, effectively for you to make money somebody has to lose money. If that system works, why doesnt everyone else do it? Unfortuneatley it just isnt that simple.

Moving averages are a perfect hindsight tool. So how many times has that cross given you a positive expectancy over the last 40 years, and over how many stocks? Its great seeing it worked before, but will it work in the future?
maybe the dynamic will change to a 40 period, maybe it will change to an 80 period. You have to know what moving average is best optimised for that stock.

 

[skc]

I thought it might be a good idea for people to post their favourite TA indicators for identifying an entry into a ASX stock....(NOT SHORTING please), and what conditions must be met for you to enter. Time frame to hold can be for as little as a week or medium term..........

Please add in a chart to show an example if you can.

Please post:
1. What indicator/s you use, please provide details of if it is daily, weekly, or monthly chart/s or a check of all of them
2. Why you use this particular TA combination?
3. Do you double check the entry with another set of indicator/s and if so which ones?
4.Why do you use this particular combination?
5. When would you get out of the trade and why, which indicators would you use to confirm an exit, or would you have a predetermined profit that you would be happy with......

I would be most grateful to those who share their favourite system.....if possible so others like me who are still refining TA, please keep it as simple as possible.....

I hope that this post will be one where many including those already using TA and those hoping to gain more knowledge can come and look at the different ideas used by people, then be able to practice putting them into action and then making some $$$$$$.........

Thank you and I hope many contribute and many read.........In anticipation......best wishes

The favourite TA is the retracement swing trade when they coincide with Fib retracement levels. There is a whole thread (not started by me) on this in the forum... see if you can find it.

Unfortunately it is not indicator based so not readily programmable.

 

[professor_frink]

I thought it might be a good idea for people to post their favourite TA indicators for identifying an entry into a ASX stock....(NOT SHORTING please), and what conditions must be met for you to enter. Time frame to hold can be for as little as a week or medium term..........

Please add in a chart to show an example if you can.

Please post:
1. What indicator/s you use, please provide details of if it is daily, weekly, or monthly chart/s or a check of all of them
2. Why you use this particular TA combination?
3. Do you double check the entry with another set of indicator/s and if so which ones?
4.Why do you use this particular combination?
5. When would you get out of the trade and why, which indicators would you use to confirm an exit, or would you have a predetermined profit that you would be happy with......

I would be most grateful to those who share their favourite system.....if possible so others like me who are still refining TA, please keep it as simple as possible.....

I hope that this post will be one where many including those already using TA and those hoping to gain more knowledge can come and look at the different ideas used by people, then be able to practice putting them into action and then making some $$$$$$.........

Thank you and I hope many contribute and many read.........In anticipation......best wishes

here's a freebie from the marketsci blog. IMO marketsci is one of the most interesting blogs on the net, and one of my personal favs. Well worth spending some time going through and reading as much of it as you can if you want some new ideas

Basic jist is to buy when the 4 period CCI dips below -100 and then exit when it closes above 0. Another way of putting that is it's buying short term dips away from the 4 period moving average and seling when it crosses back above it.

Below chart showing signals for the s&p500. 9 completed trades, 7 winners(kind hard to do any worse than that this year as pretty well every dip has been bought up big making everyone look like a genius!)

I haven't tested this on any ASX stocks so can't say what it would perform like, but would guess it won't quite work as well on the ASX as the US markets.

Not recommending this as a standalone system, just thought I'd throw it in here to see if it gets people thinking a little. That and I really like the marketsci blog and wanted to give it a free plug

 

[Sean K]

I buy when the EW thread says sell.

 

[brty]

My TA uses things like 'meandering', 'relatively slowly', 'good support', 'poor support', 'good resistance', 'poor resistance','volume support', 'volume resistance' and a number of other simple, but un-programable characteristics.

brty

 

[lukeaye]

I buy when the EW thread says sell.

Thats not so silly.

I find buying when bloomberg is very doom and gloom is a good indicator

 

[Boggo]

Please post:
1. What indicator/s you use, please provide details of if it is daily, weekly, or monthly chart/s or a check of all of them

You are not buying or selling an indicator, indicators are useless unless they are telling you something.
What pattern, trend or breakout etc are you looking for ?
Once you work out what you are looking for then you can modify the indicators provide a heads up to that situation on any stock.

I run two different Metastock scans based on indicators, I don't see the indicators, I just know that when the stock appears in the search results it has met my formula combination behind the scenes.
One indicator may provide a signal today and another may do the same tomorrow, seldom do they all cross together.

ASL appeared on the last two nights and I may get another tonight just by looking at the shape of another indicator.
In reality I never actually look at the indicators, just the pattern that I am hoping to find and a glance at the volume behaviour is all I need.
Unlike Elliott Wave there is no skill or study required, just scan and glance.

Example pic below is of the indicators all crossing fairly close together on HGO resulting in a signal on Tue night, note the volume if you look at the chart and note past crossovers in relation to price pattern.
My opinion, you must know what you are looking for and then modify the indicators to identify it.
.

 

[Boggo]

Example of what I see when I open a chart that has appeared in the scan results.

 

[gamefisherman]

Thank you to all those who have posted.........I have already learned alot from your comments.....Over the weekend I will go through each post and make notes and might have some questions.......

Much appreciated....

 

[cutz]

FWIW,

The best thing i've done is thrown TA out the home office window, most indicators are hindsight thingies and probably won't enhance your profitability.

IMO not bothering with fancy indicators is the way to go.

:hide:

 

[beerwm]

FWIW,

The best thing i've done is thrown TA out the home office window, most indicators are hindsight thingies and probably won't enhance your profitability.

IMO not bothering with fancy indicators is the way to go.

:hide:

^ well put


you really want to trade a 'concept' rather than a set of indicators.

for example,

Trend Following:

ive thrown out all the trend-like indicators [moving average/macd] and just coded a simple

- change in price/[over]/time period. adjusted by volatility

as Trends are defined by 'price action' and not by indicators

 

[Wysiwyg]

as Trends are defined by 'price action' and not by indicators

Yes the price action determines the trend but it is hard to deny that a rising MACD histogram is an indication of a rising price. I have drawn through the vertical lines from the bottom of the histogram to the price as an example.

 

[skc]

Yes the price action determines the trend but it is hard to deny that a rising MACD histogram is an indication of a rising price. I have drawn through the vertical lines from the bottom of the histogram to the price as an example.

That's what indicator means... they indicate. So no one can argue MACD histogram is an indication of a rising price. But you don't need the MACD histogram to judge it was a rising price chart. The higher highs and higher lows tell you that straight away.

And as we know it is not a predictive tool. So you don't know what will happen next. The current histogram will keep getting lower until the price turn back up. At that time the histogram will put in a low point to indicate the price change AFTER the event has taken place.

I just don't know of what use is that information.