- Joined
- 28 December 2013
- Posts
- 6,362
- Reactions
- 24,246
THE SIXTH COMMANDMENT
The Fifth Commandment may in fact help you stick to the Sixth Commandment: “Don’t get giddy at the top,” because that is usually the time to be selling. If Bill O’Neil were given a choice of being able to use only one type of chart interval, he would pick weekly charts. At least this is what he once told us, and there is good reason for this. First of all, O’Neil shuns reacting to news and other noise, including unusual intraday price swings. Intraday charts to O’Neil are virtually useless. O’Neil is on the hunt for “big stocks” that are heavily trafficked in by institutional investors, who buy and sell their stock positions over a period of many weeks, sometimes even months, so their activities are not likely to be picked up by an intraday chart, and in most cases probably not by a daily chart either. For this reason, weekly charts are the preferred “visual tool of choice.”
Skate.
The Fifth Commandment may in fact help you stick to the Sixth Commandment: “Don’t get giddy at the top,” because that is usually the time to be selling. If Bill O’Neil were given a choice of being able to use only one type of chart interval, he would pick weekly charts. At least this is what he once told us, and there is good reason for this. First of all, O’Neil shuns reacting to news and other noise, including unusual intraday price swings. Intraday charts to O’Neil are virtually useless. O’Neil is on the hunt for “big stocks” that are heavily trafficked in by institutional investors, who buy and sell their stock positions over a period of many weeks, sometimes even months, so their activities are not likely to be picked up by an intraday chart, and in most cases probably not by a daily chart either. For this reason, weekly charts are the preferred “visual tool of choice.”
Skate.