Teach me how to chart

Hi,

So far I've been making investment decisions based on fundamentals but can never time my entries/exits right. I'm interested in learning charting to better play the game...can someone teach me how to chart? or refer me to information?

I currently use incredible charts software

Cheers

noneother said:

Hi,

So far I've been making investment decisions based on fundamentals but can never time my entries/exits right.

Click to expand...

what sort of analysis do you conduct when you say you invest "based on fundamentals".

noneother said:

So far I've been making investment decisions based on fundamentals but can never time my entries/exits right. I'm interested in learning charting to better play the game...can someone teach me how to chart? or refer me to information?

Click to expand...

Good place to start..."Ten Laws of Technical Trading" Link

I also use Incredible Charts,
I find it easy to use Moving Averages as a good Indicator for Buy / Sell Alerts.
50 Day MA for support / exit alerts.
10-13 Day MA for resistance / entry alerts.
If your stock is trading its 10-13 Day MA above its 50 Day MA, suggest a strong momentum, possible bull signal and can enhance a entry point.
If your stocks 10-13 Day MA has falling below it 50 Day MA, suggest a change in trend and can enhance a exit point.
Of course all this is based on MA's. As true as it may be, other indicators can assist you in you analysis to Co-Inside with your Stocks Fundamentals. Keeping your trade honest you might say;

Accumulation Distribution ( ESQ )]Relationship between Price and Volume. A good indicator of movement.
Community Channel Index Overbought / Oversold. Likely turning points.
Directional Movement ADX Identifies a change in trend.
Force Index Measures the strength of the Bulls and the Bears in the market.
Price and Volume Trend Measures the strength of a trend and warns of reversal.
Bollinger %b Apparently a good indicator of entry and exit points. Otherwise -
Bollinger Bands Confirms trading signals for momentum or trend.

Try these out see what works for you for you. Good Luck!

http://www.incrediblecharts.com/sitemap.php?cluster=13

Just been reading Market Wizards and since I like to use charts in my investing

I found the question asked to William O'Neill.."The art of Stock Selection" rather interesting......

Q...Aside from the subjects we have just discussed, is there anything else you would consider a major misconception?

Reply...

Most investors think that charts are hocus-pocus. Only about 5 to 10 percent of investors understand charts.

Even a lot of professionals are totally ignorant about charts.

Just as a doctor would be foolish not to use X-rays and EKGs, investors would be foolish not to use charts.

Charts provide valuable information about what is going on that cannot be obtained easily any other way.

They allow you to follow a huge number of different stocks in an organised manner....

Here here!

The main reason I started "Charts of interest"
Is to showcase charting.

In particular simplicity in charting
You won't find a mass of indicators cluttering
My charts.

Charts should be black or white
The analysis proven correct or wrong
The trading should be high in RR and low in R

Chartists should be expert decision makers
Without emotion.