Technical Analysis Discussions

[GreatPig]

Since I'm trying to learn this, I'm wondering if anyone would be interested in discussions on the various aspects of it - ie. the mechanics of technical trading.

Rather than just a broad discussion of the whole kit and kaboodle, I was thinking more of a series of threads about individual elements: chart patterns, the different indicators, stop-loss and quantity selection, trading methodologies and record keeping, and so on. While all these things are covered in the various books on the topic, I'd be interested to know how people here approach these things, and what benefit or otherwise they see in the different methods and elements.

I'll start another thread for a first topic and see how we go.

Cheers,
GP

 

[JetDollars]

GP,

As I only a novice here, I am not too sure it will be any help for you. Anyway, I have been reading Louise Bedford books and several other books as well.

I currently using A4 notebook to keep track all my paper trading 2 pages for each company. I write down all my analysis and the strategies I will use from the analysis.

I also in the process of preparing my trading plan (half way through).

I just finished reading 'Trading Secrets' by Louise Bedford. I found it quite good for starter like myself. Now I am reading 'Charting Secrets' which at the moment covered very similar info comparing to 'Trading Secrets'. I believe if I can master the basic it will be much easier to trade in the future.

 

[GreatPig]

As I only a novice here, I am not too sure it will be any help for you.

That's okay. I'm sure us novices can fumble our way through a discussion and still learn something .

I have been reading Louise Bedford books and several other books as well.

I'll get on to hers after I've read the other ones I've got.

Cheers,
GP

 

[Joe Blow]

Since I'm trying to learn this, I'm wondering if anyone would be interested in discussions on the various aspects of it - ie. the mechanics of technical trading.

Rather than just a broad discussion of the whole kit and kaboodle, I was thinking more of a series of threads about individual elements: chart patterns, the different indicators, stop-loss and quantity selection, trading methodologies and record keeping, and so on. While all these things are covered in the various books on the topic, I'd be interested to know how people here approach these things, and what benefit or otherwise they see in the different methods and elements.

I'll start another thread for a first topic and see how we go.

Cheers,
GP

Sounds like a good idea GP!

I for one would be very interested.

One of the reasons I started this forum was so i could learn more about the different aspects of stockmarket investing and trading... from other posters of course!

Will try and contribute according to my own limited (but increasing) knowledge.

 

[GreatPig]

Joe,

Thanks for the interest!

I don't think it matters too much if there are no experts to contribute. Often I find just trying to explain something helps clarify in my own mind how it works, or at least highlights the bits I don't fully understand so that I know what I need to research further. When you just read through a book, it's easy to gloss over the details and not realise until later that you don't fully understand what it's about.

And if we all get stuck on some point, then it becomes a research assignment!

Cheers,
GP

 

[still_in_school]

definetly agree...

Louise Bedfords books are great, also the technical analysis modules on Etrade are great, its in flash but the narrator explains and describes different patterns, trends charts, but the great thing about the flash stuff is, they high light and circle the particular element of what the module and learning, that is being talked about... great for all levels...

Cheers,
sis

 

[Wysiwyg]

One of the reasons I started this forum was so i could learn more about the different aspects of stockmarket investing and trading... from other posters of course!

Will try and contribute according to my own limited (but increasing) knowledge.

Well we have seen the bull and bear cycle since this forum was opened and for me I have gone from monitoring share price movements in the local paper to presently venturing into cfd and currency pairs.

A few years ago I never even contemplated forex and had some interest in futures via the first book I read by Stuart Moore and Chris Jasch called "Trading Australian Futures".

Spent all of the bull run suffering from the `out to soon` phenomena.Hard to see another steep bull run like yesteryear again so maybe `out to soon` might be `out just right` next bull run.

There is soooo much to know and every day brings new information, ideas and strategies to a market place that is bigger than any individual or organisation.

Expert Advisor systems have my interest now too.

As big Waz Buffet said ... "We enjoy the process far more than the proceeds" ... that isn`t to say the proceeds are less important.

Hmmm the process.

TECH.

 

[kam75]

Another good book to read is Jack Schwager's "Getting Started in Technical Analysis."

 

[brty]

Hi,

Can I suggest "the encyclopedia of chart patterns" by Thomas Bulkowski. You get a picture of all his patterns on his web page here...

http://thepatternsite.com/chartpatterns.html

He has all manner of statistics regarding different patterns in different situations. However what needs to be remembered is that using a different period in time and a different data set can and will produce different results. But for learning what the patterns are it is a good place to start.

brty

PS I do not recommend following any 'trading advice' from that site, it should be education only.

 

[tech/a]

Great idea.
Get into it.

 

[howardbandy]

Hi,

Can I suggest "the encyclopedia of chart patterns" by Thomas Bulkowski. You get a picture of all his patterns on his web page here...

http://thepatternsite.com/chartpatterns.html

He has all manner of statistics regarding different patterns in different situations. However what needs to be remembered is that using a different period in time and a different data set can and will produce different results. But for learning what the patterns are it is a good place to start.

brty

Greetings all --

Chart patterns can be profitable. As you are studying them, and searching for patterns that have been profitable in the past, you are "data mining". Of course, you must data mine to identify profitable patterns. The danger is that chart patterns are very susceptible to being profitable during the in-sample period (the period being mined), then being unprofitable during the out-of-sample period (the period that was not used during the mining, including tomorrow). It is very important to retain a period of time, perhaps all of 2007 and 2008, to use as an out-of-sample test period.

One other characteristic of patterns is that they have a lower tendency to stop working when they are published than other technical analysis techniques. So, by all means, when a potentially profitable pattern has been discovered, post it for us all to try on our favorite tradables.

Thanks,
Howard