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Topic: Charting tips and tricks (Read 5197 times) previous topic - next topic

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  • ken
  • [*][*][*][*][*]
  • Global Moderator
Re: Charting tips and tricks
Reply #15
MA's
Blue is 50 day
  • Last Edit: October 01, 2019, 12:12:08 PM by ken

Re: Charting tips and tricks
Reply #16
Thank you very much :)
Did a short read on pivots on Investopedia to get some idea how they work.

It is showing me that it is trading below pivot and that it broke below 50ma.
Looking backwards, I found many examples of strong down movement all the way to the 200ma when breaking 50ma while trading
under pivot.
First support around 16.6, if broken could drop to 16.01-15.85.

Am I anywhere closer?


Re: Charting tips and tricks
Reply #17
I hope you guys can help giving me some pointers on how to expand on charting.
I tried locating support, resistance and targets and I also tried to see if the most recent action is
some kind of descending channel.
Indicators I'm using are telling me the price wants to either consolidate or go some more down.
Obviously, I dont have a clue of what I'm doing.


Main thing with charting is to understand what you are trying to get from it. In a nut shell, charting is looking at the collective historical actions of both traders and investors over a period of time and project what traders and investors (not necessarily the same ones) will do in the future. When using a tool, understanding how the tool works and changes with conditions helps understand the tools limitations and strengths. For example, both fast and slow stochastic charts are very short term oscillators reasonably good at a couple days projection but very often wrong for any longer time period. I like what Ken suggested WRT moving averages as a start point; they are simple and easy to understand.
It is also important to understand charting historically can be accurate, but projecting the future is an art, not science, even though math tools are used. I find that using the same chart templates over a period of time allows me to get a feel for their most useful features, reliability, and limitations. I have been playing around with charts for some time and still learning. Snoop is probably the most advanced and esoteric chartist on this forum; I really enjoy trying to understand all the nuances he puts forth, but frankly, he is way ahead of me.
Lastly I will say a fundamental announcement can throw a chart analysis out the window, particularly a short term projection. A classic example will come up this Friday with the employment report. Many times market participants do not understand a report initially and early knee jerk reactions are quickly reversed violently, something a short term chart will not project. I like charting and I like trying to understand other folks chart work. Enjoy!

  • ken
  • [*][*][*][*][*]
  • Global Moderator
Re: Charting tips and tricks
Reply #18
Thank you very much :)
Did a short read on pivots on Investopedia to get some idea how they work.

It is showing me that it is trading below pivot and that it broke below 50ma.
Looking backwards, I found many examples of strong down movement all the way to the 200ma when breaking 50ma while trading
under pivot.
First support around 16.6, if broken could drop to 16.01-15.85.

Am I anywhere closer?


I have seen the plunge to the 200dma also. To build a rule around that is folly.

Now RSI, relative strength is a great tool. Look how I chart using RSI. These lines where drawn some weeks ago, some over a month ago. I find them helpful as you can see.

Re: Charting tips and tricks
Reply #19
I hope you guys can help giving me some pointers on how to expand on charting.
I tried locating support, resistance and targets and I also tried to see if the most recent action is
some kind of descending channel.
Indicators I'm using are telling me the price wants to either consolidate or go some more down.
Obviously, I and the lower dont have a clue of what I'm doing.



The spot silver chart below is in a template I have posted several times recently; I am posting now as with this mornings trade data it is showing a buy signal, but this is a very short term indicator, possibly good for less than a full trading day and is useful for day trades. There is no confirmation of trend projection in this template.

Price action is moving away from the lower BB and though not necessary, another positive is the lower band is turned up. Incrementally the bands are fairly wide spread and narrowing suggesting the move up will not be with much amplitude over the short term. BB midpoint line (20 day moving average with Trading View defaults) is sloping down so the trend over the last 20 days is down, that is kind of a duh statement, but often over looked by me. The volume curve is not announcing anything as it is about normal. MACD curve spread is bear oriented but the spread is now closing, easily seen on Trading View default chart setting with the histogram turning pink. The curves are near the midline so the oscillator is suggesting the bounce back is not from a seriously emotional oversold position. The very short term Stochastic oscillator curves are both below 20 indicating over sold. They are crossing to bull orientation.


Re: Charting tips and tricks
Reply #20
I have seen the plunge to the 200dma also. To build a rule around that is folly.

Now RSI, relative strength is a great tool. Look how I chart using RSI. These lines where drawn some weeks ago, some over a month ago. I find them helpful as you can see.
[/quote]

I will not be making it a rule, it caught my eye so I wondered if it's worth to be mentioned.
More basic approach you suggested, at first seemed so naked that I couldn't see a thing.
Only after few hours of adjusting to it was I able to see something, than I was actually amazed:)
Thank you for introducing me to pivots!
I see your RSI but I can't say I fully understand how it works, reading about it now.

Re: Charting tips and tricks
Reply #21

The spot silver chart below is in a template I have posted several times recently; I am posting now as with this mornings trade data it is showing a buy signal, but this is a very short term indicator, possibly good for less than a full trading day and is useful for day trades. There is no confirmation of trend projection in this template.

Price action is moving away from the lower BB and though not necessary, another positive is the lower band is turned up. Incrementally the bands are fairly wide spread and narrowing suggesting the move up will not be with much amplitude over the short term. BB midpoint line (20 day moving average with Trading View defaults) is sloping down so the trend over the last 20 days is down, that is kind of a duh statement, but often over looked by me. The volume curve is not announcing anything as it is about normal. MACD curve spread is bear oriented but the spread is now closing, easily seen on Trading View default chart setting with the histogram turning pink. The curves are near the midline so the oscillator is suggesting the bounce back is not from a seriously emotional oversold position. The very short term Stochastic oscillator curves are both below 20 indicating over sold. They are crossing to bull orientation.


To respond to your first reply, in short, what I would like to get from charting, besides it's super interesting to explore, is better understanding of markets and with that, hopefully, improve my decision making. I understand that takes much more than charts as a simple tweet can mess them up.
My reading material has changed incredibly and also some of my long held views and beliefs too and I know I just barely scratched the surface.

As for your chart, I could almost say I see most of the things you mentioned but could not explain or connect it the way you did.
I can see indicators showing things you say but without understanding the connections or how they work, I am always left full of doubt.
Thanks for your input, it helps a lot!

Since I joined I've been getting micro a-ha moments, you guys are awesome.

Re: Charting tips and tricks
Reply #22
Stocks trading above 50DMA

For Entertainment Purposes Only.

Re: Charting tips and tricks
Reply #23
continuing claims unemployment
For Entertainment Purposes Only.