Trading Techniques   

Charting

Hello ravi00, my apologies if u had been waiting for a quick reply. I will try to post every Saturday if I am in town. I use a SMA to look at trends and price levels. For signals, I use both the MA crossover and MACD. For textbook answers on interpreting indicators, visit 'Chart' on this website. They have a basic guide and it is a good start to understanding TA. If you are new to TA, note that TA are more than just indicators. An indicator on its own is pretty much next to useless. Begin by looking at the raw data - price, volume, time - determine the trend, support and resistance, study the price patterns, then you look at your selected indicator. For better trading decisions, use another 2 uncorelated indicators (MAs, MAXO, MACD are all derived from moving averages. It is like looking at the same object from different angles - common mistake in TA) to confirm your initial analysis. You are a FA investor. That is good. Using TA properly will increase profitability in your trades. Try it and if you need help, I will be happy to give you my 2 cents worth.

 

thanks xantho and singaporegal! I'm still a newbie when it comes to investing. i'll check out MAs first and see if it works for me.

 

Hi all, I'm basically a FA investor and am not familiar with TA. Xantho, u mentioned 'moving average'. So how does this indicator work? Hope u cld help me out.

 

Yah. I agree with xantho. FA basically tells you what shares are good to have. But TA lets you time your buys and sells. Both are important.

 

Sorry Scotty. Have been away but what a difference 1 month makes! It is really good to see this forum coming alive. And some good contributions too! Back to your question - if you are new to TA - suggests that you start with moving averages (MA) and after that perhaps RSI. I use simple MAs often. Some prefer EMAs but I think SMAs work well enough for me (at least for the counters that I am tracking). There are literally hundred of indicators available (u can also create some of your own) but it is better to be really familiar with a few select ones and learn how to interpret and apply them properly. But indicators are just that - indicators. Just like a car that is signalling left and suddenly turn right - a stock may swing south when all technical indicators are pointing north. Thus for me, unless you are a day trader, FA must precedes TA.

 

Xantho - So what sort of TA indicators do you use? Share with us your technique on when to enter and exit.

 

MAs, MACD etc are just 2 of the many indicators in TA. FA tells you what to buy or avoid while TA indicates when to enter or exit. Knowing some TA basics will help you to make better trading decisions. There are so much free info available. Just go to any such websites to learn a bit more. It is worth your while.

 

Siao. MAs don't work lah. Try using MACD. Does this website have MACD charts? Lemme see...

 

Anyone uses charting make their trading decisions?? I personally use the Moving Averages compared against Stock Price. Sometimes it works, sometimes doesn't.