Practising Charting Skills

[beamstas]

Keep watching it, and if the next dip finds good volume then I would be tempted to enter with that volume.

 

[bunyip]

Can we have a discription of a PPS triangle?
Doesn't seem to be in this thread.
Maybe a link somewhere?
Cheers.

Kennas

That pattern in BSL doesn't fit the true description of PPS triangles, which tend to form over a much shorter time, just a couple of weeks in most of the examples in the PPS book.
They're characterised by four separate points consisting of two highs and two lows.
The attached charts show a couple of examples.

Somewhere in this forum there's a thread called 'PPS Trading System by Curtis Arnold' - it's worth a look - some good examples of PPS triangles and other PPS patterns are included in that thread.

 

[nunthewiser]

Btw which stock is this?

could be any of 100,s even the xao/xjo.. one may notice that many currently have roughly the same pattern

 

[nunthewiser]

He's abusing me Aussie, not you, so no dramas! I really love new members abusing me.

sounds almost saucily naughty

Obviously you have no time for this.

 

[skc]

BSL?

This may all depend on the charting service. For posting here I use Big Charts.

I'm confounded how EW was made to fit this, but anyway.

Potential double bottom for a start. Good news. Looks like good support at $2.00 ish.

Clear downtrend line is looking to be attacked. Potential breakout.

I don't think this is going anywhere but down or sideways until the significant horizontal resistance at $3.00 is breached.

WTF! with the volume?

If I had to trade this chart (as of today) it would be long based on the very substantial volume in the past week. But I probably won't trade it given that there is no reasonable low risk point to set up stop loss, and substantial resistance at low $3ish.

If looking at the chart as it was originally posted, I would also not trade it although I would favour a break to the down side as suggested originally by Beamstas.

I guess what I am trying to say is reading chart is one part of trading, but the chart pattern also need to provide a decent set up from a risk reward point of view.

I don't feel the need, i like to know roughly what the company is about.

I agree with you here. I do it for 2 purpose:

1 - Not having too much exposure to a single sector. E.g. every coal share is looking good on the charts at the moment. But I won't want to have 50% of my open positions on that 1 commodity. You never know that the Chinese communist party might announce an Earth Month where they black out Beijing or something like that.

2 - To see stocks that can hold up fundamentally. I will increase my risk if I am more confident based on the fundamentals.

Of course, with scalping the SPI there is no point following any news. The only thing about news is to know when they will be released. Same with FX.

He's abusing me Aussie, not you, so no dramas! I really love new members abusing me.

10,000 post vs 600. Go easy on the hot blooded noob would you...

 

[beamstas]

10,000 post vs 600. Go easy on the hot blooded noob would you...

400

As you'd know. Posts don't mean everything.

 

[skc]

400

As you'd know. Posts don't mean everything.

Your post count is 590. I was rounding up.

 

[beamstas]

Your post count is 590. I was rounding up.

yours

 

[ceasar73]

I use Price, Volume and OBV to gauge the market. I'll look at support and resistance zones and see what the volume is doing. OBV tells me whether it's buying pressure or selling. Rising OBV tells me accumulation is taking place. Don't use any other indicators except a simple MA on the occassion.

I think your Bollinger Bands may definitely be of use. They're not a bad indicator.

Hi Kam

I read Stan Weinsteins book...he doesnt mention OBV. Where can i find more info on this indicator? I think I saw it mentioned in one of Larry Williams' books..does he use it?

thanks

ceasar73

 

[kam75]

Hi Kam

I read Stan Weinsteins book...he doesnt mention OBV. Where can i find more info on this indicator? I think I saw it mentioned in one of Larry Williams' books..does he use it?

thanks

ceasar73

Actually Larry Williams has developed his own indicator which he reckons is better than OBV. He discusses it in his "Long Term Secrets to Short Term Trading." I'd be interested to hear from anyone that has tested it.

Been a few years since I read Weinstein. OK but he talks about volume, volume expanding on a breakout etc. Similar thing except OBV helps you identify whether it was buying pressure or selling. Still think his is the best book on technical analysis out there. Actually he was asked to write another book but he said there's nothing else to write about because 'it's all there' in his book.

Don't know where else you could have a read about OBV but I think investorpedia would have plenty of info.
regards

 

[ceasar73]

Actually Larry Williams has developed his own indicator which he reckons is better than OBV. He discusses it in his "Long Term Secrets to Short Term Trading." I'd be interested to hear from anyone that has tested it.

Been a few years since I read Weinstein. OK but he talks about volume, volume expanding on a breakout etc. Similar thing except OBV helps you identify whether it was buying pressure or selling. Still think his is the best book on technical analysis out there. Actually he was asked to write another book but he said there's nothing else to write about because 'it's all there' in his book.

Don't know where else you could have a read about OBV but I think investorpedia would have plenty of info.
regards

Thanks Kam.

I agree , Weinsteins book is great - I like that he keeps it simple and that he didnt need to write another book.

cheers,

ceasar73