Forum Archive Index - August 2002

["Morgy" <morgy40@xtra.co.nz>]

Kiwi

Trendlines are lagging indicators, hence the reason why they look so
accurate, they show price action smoothed over a preset time frame. The
issue here is what type of investor are you, if you want to be in the main
part of an uptrend movement then fit a moving average that suits your style
& go with it, you will then just need a shorter moving average to give you
an indicator that the trend is possibly over i.e 14/30 day moving average
crossover or whatever suits your style. Moving averages wont help you too
much in a trading range market. Other indicators help in this

The main concept behind some of the other indicators is "Timing" of entry &
exit points and confirming indicators that the market is trending or
trading, looking for the best time to enter & exit or even to pattern or
channel trade.

The other chart patterns that you describe I consider are a part of the
overall process particularly when they identify longterm events unfolding,
though of course one needs to develop his or her own style & use what works
for them.

I am a bit of a fan of Fib retracement lines particularly in this market
where I have been looking at possible support levels for good stocks that
may then show a reversal pattern in the future, though I am finding more and
more a trading range is developing at the moment for many stocks because of
the overall market direction.
The monthly trend is still down on the ASX xao index though the weekly has
shown a slight upturn. I think it is important to remember the chart that
Phaedrus posted showing the ASX compared to the DJI & how the asx forms
almost identical patterns & movements, eyes should therefore be focused on
the US market as when that finally bottooms it is fairly predictable that
the ASX will have. The aussie economy is still very strong though.



 Regards

Morgy
----- Original Message -----
From: "Kiwi" <Kiwi@Pitstock.com>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, August 14, 2002 10:49 PM
Subject: Re: [sharechat] Incrediblecharts registration hangs


> Tony, In my opinion most technical indicators are worthless as they dont
> adapt to the speed of the market. The only indicator I see that has value
is
> the "trend line". I have backtested many standard indicators e.g. moving
> averages, MACD, stochastics, on balance volume and more. They do work
while
> they are in phase with the speed of the market but this is only temporary.
> Trend lines have NO preset period hence they will adapt as the market
speeds
> up and down. You may notice that Phaedrus (someone I pay attention to
here)
> for example posts charts with trend lines on them.
>
> Trend lines make "Chart Patterns". Chart partterns are the most reliable
> form of technical analysis in my opinion. What I am really saying is that
> all you need is a basic chart program that lets you draw trend lines and a
> good understanding of chart patterns which include channels, flags,
> triangles etc.
>
> My 2 cents for what its worth.
> Keith
>
> Oh yeah, some google searches on these.....
>
>
http://www.google.com/search?hl=en&lr=&ie=UTF-8&oe=UTF8&q=stock+chart+patter
> n&btnG=Google+Search
>
>
http://www.google.com/search?hl=en&lr=&ie=UTF-8&oe=UTF8&q=triangle+stock+cha
> rt+pattern&btnG=Google+Search
>
>
http://www.google.com/search?hl=en&lr=&ie=UTF-8&oe=UTF8&q=bear+flag+chart+pa
> ttern&btnG=Google+Search
>
>
> ----- Original Message -----
> From: "Tony" <tony@ltdrisk.com>
> To: <sharechat@sharechat.co.nz>
> Sent: Wednesday, August 14, 2002 6:08 AM
> Subject: [sharechat] Incrediblecharts registration hangs
>
>
> > I'm trying to learn about TA by following the TA conversations here and
> > following links.
> >
> > I went to the incrediblecharts site and saw the offer of a free download
> but
> > after installing it the registration process has a problem and times out
> > every time.
> >
> > Has anyone got this system working for them?
> > If so, I'd like to chat and see where I'm going wrong.
> >
> > The site has a huge amount of TA stuff that I'd like to try out.
> >
> > tony
> > new zealand
> > tony@ltdrisk.com
> >
> >     mailto:tony@ltdrisk.com
> >
> > Tauranga
> > New Zealand
> >
> >
> >
>
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> >
> >
>
>
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