that is a different topic. I will write about it after I study and digest the basics. There are many many other indicators.
My guess is that ultimately, the ability to apply multiple indicators to cross check with each other will significantly enhance effectiveness and make TA workable
Based on preliminary understanding of the subject, my intended use of TA will focus on detecting Breakout. It is unlikely that I will be actively trading based on Trend line. My observation so far is that those things are too subjective
another way to say it is that chart pattern tells you the story of how people buy and sell a particular asset in the past. Based on those legacy, TA tries to predict how those people will act in the future
Posted by stockmanmy > May 6, 2016 12:16 AM | Report Abuse
Certain chart patterns are very useful That is because chart pattern reflect the collective behavior of participants. Chart patterns tend to repeat
A fisherman knows that the sea is dangerous and the storm horrible, but these perils are not sufficient reasons for him to remain ashore.
An about-drowned boy would grip on anything that would keep him afloat even if what he embraces is only a rotten tree branch.
Needless to say, trading and investing in equity market is very risky.
To me TA is more than just a life buoy, a life-saving tool. It is good to learn some TA skills while looking for a lighthouse if you are at sea (In this context, if one still like to be involve in equity market).
Icon8888, a teacher would make further self-improvement (even though he may never realize it) in the process of teaching and sharing of his knowledge.
After the Global Financial Crisis of 2008-2009, Wall Street had this to say: Those who embrace TA skill for signals would be less hurt financially than those who just buy and keep the shares.
Although these were not the actual words of Wall Street Journal, but those were what I read from NST.
ckwan11d, recent survey I read said, rich were less hurt during financial crisis bcos they dare to cut lost, while the poor little fish kept holding hope the market would bounce back. nothing to do with TA, just mentality. partially bcos for the rich, lost few millions nothing much for them, they know they always can earn back the money, while the poor little fish, once get burnt, hard to come back.
I am one of the very small fish in Bursa. My own very basic rules of investing:
1) Buy low and sell high. - that only leave me to think about how low is low ...
There is another saying quite similar to this : You only have to take care of the bottom and let Mr Market take care of the top.
2) Button my profit soonest possible and cut loss when I could sense the first sign of danger. - I normally buy at very low transacted volume and would sell when there is a sudden surge in volume. I preferred MACD over RSI for this.
I never trade IFCAMSC Bhd. But if I had, I think I could avoid the heavy trading losses if I stick to my rule.
One of my best performance was Johore Tin Bhd - reaping handsome profit during the period March 2012 - Dec 2012 (ranging from 94 Sen to about RM1.95) when I sensed that she was following the foot-step of Canone Bhd venturing into dairy business. I totally ignored about her when OSK (now RHB IB) excluded her in the top small cap pick in subsequently year. No look back.
My bad luck for not following my own rules - making losses the very next day (both limit down) when I bought Solutions Bhd and Vis Dynamic Bhd (both Ace Market counters then).
Self discipline is vital. It wouldn't guarantee success but at least it may help to avoid heavy losses.
X knowing insufficient of TA skill can be as deadly as not knowing any. you either be an expert, or better don't waste time in it. it will take you easily 10yrs of experience to master it.
TA is not limited to just look at MACD RSI and all other fancy indicators. many indicators are rubbish. created just to sell you the software and license.
the Ultimate of TA reading is Chart pattern reading. it is as close to a Master Palm reader expect who can accurately tell you what your future is when you were only 5 yrs old.
TA indicators are like your daily/weekly horoscope. it changes with days and react to external factors.
Try using MACD for futures trading n you will lose yr pants. MACD is derived from moving averages. Moving averages are lagging indicators. I do not see ho MACD will give u any advantage in share trading.
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stockmanmy
6,977 posts
Posted by stockmanmy > 2016-05-05 23:48 | Report Abuse
Have never found any use for it.
A simple price volume chart and guts is the best.
No unnecessary noise......just the pure actions.