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Cool stuff man!

sure.... what stock you have?

I can't remember the books from Larry Williams off hand now. But if you do a search on Amazon for him, you should be able to find his books.

 

Thanks singaporegal. Do you have the title of the book?

Can I also take the liberty of seeking your opinion on the TA for stock on my radar screen?

Thanks.

 

Buy a book.

I suscribe to Larry Williams methods!

I find MACD doesn't work every well.... try accumulation/distribution and RSI or Williams %R.

 

I am not much of a TA user and am not well versed in it. I tend to rely on FA for my investment decisions but try to use TA to assess the timing of entry or exit.

One tool I use quite often is MACD but I find it to be too lagging.....anyone care to comment?

Also, will appreciate if anyone can point me in the right direction where I can get a quick understanding of TA techniques....books, etc...or if any fellow members can give some tuition.

Thanks 

 

Unless I have a computer program doing the calculations, I couldn't be bothered with formulae.

What I do is to take the extreme case, say a stock's RSI reached a minimum of 15% over the last year before rebounding. When the RSI reaches 25%, I'll start monitoring. When the stock falls a few cents, I'll check the RSI again. From there, I estimate how much more it'll fall or reach what price before the RSI reaches 15%. I'll check whether this coincides with a support level.

I don't wait until the RSI turns or rebounds before buying. In this way, I'm trying to catch the bottom and the RSI becomes a leading indicator instead of a lagging indicator. This is a quick and easy method.

 

we're not related...... LOL...

 

heh..singaporegal..that was good info..btw so cute..u have a singaporeguy too..haha..:)

 

no problem! We're all learning about investing!

BTW, do NOT trade just based on overbought and oversold indicators. They are just another clue for you. What I do is this... I use Accumulation/Distribution to check for divergence and then W%R to see if its oversold.

I will buy if there is a divergence PLUS if the stock is oversold. NEVER rely on just ONE indicator to make a trading decision.

 

singaporegal

Thank you very much indeed for taking time off to reply.

I may not understand the whole concept. It is OK. I will try to have patience to wait until it is in oversold position to place a buy and overbought position to place a sell. Hope this simple thinking is right.

Thank you once again. I owe you a drink.

 

hello fchia and Sporeguy ,

I'm a long time user of RSI, Williams %R and Accumulation. I'll try to briefly mention what they're about and how they are calculated. I've extracted the formulaes from the Internet. (see - www.stockcharts.com and www.investopedia.com)

Accumulation/Distribution
The formula is this:


Its a cummulative function. Basically, if you study the formula, you'll notice that it is a measure of buying or selling interest of a stock. Because its cummulative, if the AD line rises, it can be interpreted that the buying interest of the stock is rising. The ideal buy setup would then be this - the AD line rises while the stock price remains constant or drops. This is refered to as divergence. The converse is true if you want to look for a sell setup.

RSI

The formulae is this -



U and D are moving averages of the gains and losses in the last 14 days (most common period of time used). RSI can be used for divergence like the AD line as I described above. It can also be used to determine if a stock is oversold or overbought. If oversold, the RSI is below 30. If overbought, the RSI is above 70.

Williams %R

Formula is -


The most common period for W%R is also 14 days. The %R is used mainly to check if a stock is overbought or oversold. If the stock is overbought, the W%R is above -20.0 . If the stock is oversold, the W%R is less than -80.0.  You notice its an inverse scale.

Conclusion
I have been using them a great deal and I feel that they complement one another very well. I use AD to look for divergences and RSI and W%R to look for overbought/oversold conditions. I find that W%R is more sensitive to price changes than RSI. So, it depends on your trading nature - if you are more speculative, rely on the W%R more. If you are more risk averse and want double confirmation that the stock is oversold, make sure that BOTH RSI and W%R are oversold.

I hope this helps! Took me 20mins to type this out! Haha!

 

tanglinboy

Yes, you are right. I was watching World Cup at 3.17 am.

I would like to learn more about 'oversold and overbought' indicators. Would you be able to explain how you look at the RSI and Williams %R indicators to determine when it is 'overbought' or 'oversold'? Perhaps you can give an example. Thanks in advance.

 

Hi tanglinboy, How is acc/dist calculated (or its idea or concepts)? Does it have same purpose as OBV (On balance Volume) ? Thanks in advance

 

Hi fchia8,

The oversold and overbought indicators provided by ShareJunction are RSI and Williams %R. They are different from Accumulation/Distribution.

Haha... I'm not that tanglinboy from SI. Someone else using my nick... hehehe... I wasn't an SI member - I didn't want to pay good $$ for using their forum.

You were from SI last time? There seem to be many people who jump ship from SI to SJ.

What the heck were you doing posting at 3.17am??? Watching world cup???  :) LOL..

 

tanglinboy

When you mentioned 'oversold and overbought' indicators, are you referring to Acc/Dist (Accumulation/Distribution) indicaters? Are these two indicators the same?

BTW, were you also participated in Shareinvestor's forum. I remember crossing path with 'tanglinboy' at Shareinvestor's forum sharing views on SPC. You must have made a bundle from this counter - SPC, am I right?

 

Wow! I like the new tools on ShareJunction!

I especially like the oversold and overbought indicators on each stock! Well done admin!