Interesting Charts for Technical Trades

[Dinerotrader 10]

I always enjoy looking at other people's chart analysis especially for stocks to see another perspective but also to get ideas on where a potential move is brewing. Stocks create such a vast list of potential trades that it is impossible to be watching most of what is happening. Many great traders mention that they simply wait for money to be lying around somewhere and just scoop it up with little effort. Brownsfan, would call that a "gimme" trade. My guess is that those types of setups happen quite often in the world of stocks but it can be very hard to be aware of them.

 

I thought a nice little thread of just annotated stock charts of setups you are watching or have come onto your radar would be not only interesting but also would spur some possible trades for those not watching what you are watching.

 

So here we go. I have made some great money on PMI in the past so I always am watching them as a way to play moves in housing. They are forming a nice little wedge around a reasonable S/R level I had marked even before the wedge began. I do think this could go either way but I will be watching this.

 

Edited November 13, 2009 by Dinerotrader

[DugDug 10]

Good idea, for all the reasons stated, there are usually a few standout charts.

(i hope) I have attached one that works well for me..

It is VBA an Australian stock. The reason being that it has a lot of potential upside (2-300%), showing signs of rallying on all indicators, and is actually getting upgrades from analysts. (though i am technically based, I stumbled across this news hence alerting me to it)

 

One point of a thread like this though - ideally it needs be be segregated into either countries, or sectors. Otherwise too many charts may come through. OR try and limit it to people submitting the best of the best - eg; one a week, or fortnight.

Even then I think it will lead to a lot of charts.

[Dinerotrader 10]

There aren't too many out there that trades stocks on TL from what I have seen so I am not yet worried about anyone posting too many charts.

 

I can't really see your chart at all because it is too small.

[DugDug 10]

sorry about the small picture - I'll work out the best way to send these things one day.

Its VBA-ASX on esignal feed. In this case as its a long term trade I use the weekly to confirm, but it also looks similar on a daily chart.

It uses the Donchian channels (I am not a big believer in optimising for the best values, and hence just use 25 day and 50 day)

I simply look for higher highs, and higher lows, while also looking for a lot of potential upside. Which means you have to be prepared to get on reasonably early. But using a weekly chart still gives plenty of time.

[Dinerotrader 10]

Right at a trend line as well as a support level. Seems like a pretty low risk area to go long with a stop just below trend and support.

 

[Dinerotrader 10]

Right at a trend line as well as a support level. Seems like a pretty low risk area to go long with a stop just below trend and support.

 

Got a nice move from that support level. I wonder if the combination of a horizontal and trendline support level give a higher probability of a reversal becoming profitable.

 

[Dinerotrader 10]

Got a nice hammer on this stock today right at a possible support level. We'll see if tomorrow brings "confirmation" PA to validate the reversal trend.

 

[brownsfan019 17]

Got a nice move from that support level. I wonder if the combination of a horizontal and trendline support level give a higher probability of a reversal becoming profitable.

 

I think you'll find dinero that the more confluence of reliable signals you get at once, the stronger the trade. The key finding the reliable ones.

 

Nice charts, keep it up.

[Dinerotrader 10]

I think you'll find dinero that the more confluence of reliable signals you get at once, the stronger the trade. The key finding the reliable ones.

 

Reliable signals....

Since I have never looked at indicators, all I have in my arsenal to consider is S/R levels, trendlines, candles, and price action, if you can call that a signal. Maybe I should look into moving averages a little since so many traders are using them to decide on trades also.

Edited November 30, 2009 by Dinerotrader

[brownsfan019 17]

Reliable signals....

Since I have never looked at indicators, all I have in my arsenal to consider is S/R levels, trendlines, candles, and price action, if you can call that a signal. Maybe I should look into moving averages a little since so many traders are using them to decide on trades also.

 

All you have is:

• S/R
  
• Trendlines
  
• Candles
  
• And price
  

You poor thing.

 

If you want to open that indicator pandora's box, do it already. In another thread I warned you what may happen but if that itch won't go away, then itch it. Just don't say you weren't forewarned.

 

And if you must do it, stick with the simple stuff that you can understand how it's even constructed. Moving averages are easy to grasp, volatility ranges (bollingers, keltners) or oscillators that show overbought/oversold areas.

 

Just be prepared to be massively let down. You will find what you think is the grail b/c one day bollingers nailed every single move and the next you'll get slaughtered.

 

I have one suggestion if you do this - post it here so others can learn from it. Seriously. Start your own 'indicator experimentation' thread and run w/ it.

[Dinerotrader 10]

All you have is:

• S/R
  
• Trendlines
  
• Candles
  
• And price
  

You poor thing.

 

If you want to open that indicator pandora's box, do it already. In another thread I warned you what may happen but if that itch won't go away, then itch it. Just don't say you weren't forewarned.

 

And if you must do it, stick with the simple stuff that you can understand how it's even constructed. Moving averages are easy to grasp, volatility ranges (bollingers, keltners) or oscillators that show overbought/oversold areas.

 

Just be prepared to be massively let down. You will find what you think is the grail b/c one day bollingers nailed every single move and the next you'll get slaughtered.

 

I have one suggestion if you do this - post it here so others can learn from it. Seriously. Start your own 'indicator experimentation' thread and run w/ it.

 

Yea, I probably shouldn't have posted that last post. It came across the wrong way. I won't be using indicators because I do trust you and others that have helped me so much thus far.

 

I might use an indicator if it clearly showed me some of the things I look for in price movement but I have so much more research and trade analysis to do before I can start that search.

 

I'll try to keep posting some charts that look like reasonable setups based on the signals I noted above.

[thalestrader 14]

All you have is:

• S/R
  
• Trendlines
  
• Candles
  
• And price
  

You poor thing.

 

I

 

Right, Brownie. How could anyone possibly think they could trade with such a pathetically outfitted tool box?

 

I'm pulling for you, Dinero, but I'm not a warm weather person. So if you get yourself hooked on indicator crack, someone else will have to fly out there for the intervention.

 

Best for you never to try the stuff. Trust me. It took me years to kick the habit. You are not missing anything. Trust me.

 

Best Wishes,

 

Thales

[brownsfan019 17]

Best for you never to try the stuff. Trust me. It took me years to kick the habit. You are not missing anything. Trust me.

 

Thales and I are speaking from experience here dinero. Since we like you, we are only trying to save you headaches and heartbreaks.

[Dinerotrader 10]

Right, Brownie. How could anyone possibly think they could trade with such a pathetically outfitted tool box?

 

I'm pulling for you, Dinero, but I'm not a warm weather person. So if you get yourself hooked on indicator crack, someone else will have to fly out there for the intervention.

 

Best for you never to try the stuff. Trust me. It took me years to kick the habit. You are not missing anything. Trust me.

 

LOL. I bet you would really like the warm weather.

No intervention for me. I won't be going through the indicators.

 

I do trust you guys. That is why I hang around your threads and post my novice ideas so I can get set straight when I stray from the path to success.

[brownsfan019 17]

Getting this thread back on track - what's so wrong with having a trendline and S/R level tested simultaneously and then trade from it? Your chart looked pretty good to me and was fairly easy to see how you did it.

 

Here's part of the issues people have with S/R and/or trendlines - you can't just plug it into TradeStation and produce a p/l report. You actually have to see it and draw it yourself. It's an art, not a science.

 

So maybe you are onto something Dinero - confluence of the 'horizontal' S/R level + an obvious trendline. I say obvious b/c I've seen people using trendlines that have lines all over the place. Try to keep it clean.

[DugDug 10]

Hi,

while I dont want to knock indicators, if you are trying to avoid them I always use this thought when I need to remind myself. (As every now and again the "search" arises its head for me)

It may be a little silly but it works for me.

"imagine driving along on a motorbike and following a car that has its indicator on. It does not mean its going to turn. But its very dangerous to overtake just in case it does."

I have attached a corn trade (i know its not an equity - but i have not looked at any the last week) but the point is regards trend lines and something that works for me.

with a few simple guidelines

1 - dont get too fancy on where you draw them, just get the general direction, you will always find plenty of options.

2 - combine them with clear high low breaks. you want to see higher highs, higher lows (or opposite for downtrends)

3 - i always prefer to see a pullback toward the trendline. gives me patience to wait.

4 - you can either get on short term and trade the breaks, the pullback or wait for the longer term trends to change, and just go with them.

5 - they can be used on any time frame. any instrument.

 

It combines the idea of S-R but using more the donchian type channels. (I dont see these as an indicator)

The one issue with trend lines that might be raised is the fact that they are very subjective. hence by combining them as a guide with something else always helps.

[DugDug 10]

ignore last chart, this makes more sense.

[Dinerotrader 10]

RAIL

 

Quick fundamental info.

It is a railroad. Warren Buffet just bought a railroad recently citing that as the economy grows so will the transport business (not that everything he does is the right thing). This railroad and also the one he bought and both transport a lot of coal.

 

The support level was holding well and I liked the fundamentals for a long term hold. Stop loss would be below the support line. I bought this one with real IRA money.

 

[DugDug 10]

interesting Dinero - i like this sort of thing, but have learnt over the years (as it suits my style), to wait and buy into strength on such a chart. I would wait for it to start to rally and look to buy it back above $20 with strength with a similar stop. It stops me from picking bottoms and getting smelly fingers.

Also the big drop here would make me suspicious if i did not understand why - was it a dividend, share issue, profit warning. the gap up and gap down sends a few flags for me that i would like to know why first.

[Dinerotrader 10]

Here is another I am watching at what appears to be significant support. It had a quick peak below it in September.

 

[Dinerotrader 10]

NCS

I was scanning the Russel 2000 and found this interesting chart. I will be putting this on my watch list.

 

[Dinerotrader 10]

AGO

 

Price just arrived back at a significant level after a very short lived increase to its 2008 highs. We'll se how it reacts to that level this time.

 

[crabbydog 10]

Reliable signals....

Since I have never looked at indicators, all I have in my arsenal to consider is S/R levels, trendlines, candles, and price action, if you can call that a signal. Maybe I should look into moving averages a little since so many traders are using them to decide on trades also.[/quote

 

:helloooo:

 

Maybe use volume as well if you can figure it, but otherwise leave the rest alone. They deliver some quick even spectacular wins, but over the long term they are like most lovers and never call except to let you down.

[Dinerotrader 10]

Here is another I am watching at what appears to be significant support. It had a quick peak below it in September.

 

 

Quick update on DNN (Uranium miner). Nice little hammer at support. Most of this recent move down has been on lighter volume. I got interested in this stock a while back because uranium prices appeared over extended to the downside especially in light of the the green energy movement which will likely involve nulear power to a large degree. I might buy some of this tomorrow depending on morning price action.

 

[Dinerotrader 10]

GVA (granite construction)

This isn't as volatile as most of the stocks I try to trade. I wouldn't feel too bad going long on this once that 32 short term R is broken.