What Really Works for Technical Traders

[What Really Works for Technical Traders]

 

 

Here we go again!

 

Let's take a look at this morning's natural gas market.

 

The bar at 6 am tests the high from yesterday afternoon and forms a hammer. The market then traverses the entire channel range in a single bar and closes near the low. The next bar tests the 20 period moving average. The bar signaled by the red arrow breaks above the test bar high and reverses all the way to the low, signifying PRICE REJECTION (my favorite two words), closing on the low. At 7 am sharp the market plummets...

 

Anyone else make any money on this breakout?

 

Start tracking some of these setups and at the very least paper trade them!

(Your bank account will love you for it).

 

 

Luv,

Phantom

 

Thanks for the info! I'm new to TA so this is great. If people would like a chart game there is chartgame.com which allows you to try to beat a "buy and hold" strategy.

[How valid is technical analysis?]

Some stocks I follow will drop about a certain amount and present a buy or get ahead of themselves and that's a sell, usually, sometimes etc. I look for leading indicators for the sector to help me decide. Then there is Buffet..... if I had his brains and intuition I could be an investor instead of a trader.

 

I'm new here (obviously), although I have a lot more experience as a value investor. I've (at best) dabbled in TA and that's what I'm here to learn. The thing with Buffett (yes, he's a genius and he he has great intuition) is that he has brass balls and he doesn't care what happens to the price. Somehow, he is able to turn off the part of his brain which most of us give into. That fear and emotion which occur when a stock price drops 50% prompting us to cut losses only to watch the price turn around in 10 minutes (or a year)

 

I can find good companies cheap (yay internet). I can even stomach losing money over the short haul in order to gain long term. (This isn't intended to be about me but that's where my diatribe is going.)

 

I think pure fundamental analysis is wasteful. I give away money when my "great company" loses 50% of its share price before turning around. :crap:How much more efficient would it be to find a great company and then use TA to find an appropriate entry point or exit point?This is where I hope TA will come in. I have no idea how mixing the 2 will work (hopefully better than beer and gin) but it'll be interesting to find out.

 

As I said, I'm at "dumbass" level in TA right now but this looks like a great place to learn.