Ooi, you got to help me, what is hipoint looking at when he said base is forming? which indicator do i look at? Thanks for the help if you are willing.
According to Technical Analysis rule, we follow market trend to trade. We will not buy down trending stock even it is forming a base. We are only interested to buy only up trending stock.
Please note that any stock is trending uptrend or downtrend 30% of the time, 70% of time it is side way or no trend. We are only interested to catch either uptrend to long or downtrend to short.
To make it simple, I need 3 indicators to confirm either downtrend or uptrend of any stock. I like GMMA, 20 days EMA and RSI.
Uptrend, GMMA - Red color lines are above green color lines. 20 days EMA - The price must be higher than 20 days EMA. RSI - RSI must hook up and higher than 50%.
Downtrend, Just the opposite.
All aforesaid 3 indicators are displaying down trending signals, hence we cannot buy until all signals reversed to up trending signals.
Base forming means the price is consolidating. Sometimes, it can take 3 to 6 months before the price can move up again depending whether this stock is up trending stock or not. If it is a down trending stock, after consolidating, it still move downward. Hence it is very important to select up trending stock to buy.
This is my last request, I need a very clear picture as I am a beginner and believe in RC's counter like nicorp.... Is it the same with Nicorp if using your TA?
Ooi, I have always considered you a senior in this forum. If you were not, I would not have bothered to ask the questions I did.
Maybe you are still smarting from the wisecracked of some of the forumers here. But you should consider the stance of correcting any false offerings by fake experts. Afterall, I believe a senior is to guide the newer investors. Its up to them to believe you. Time is a teacher and enforcer of who is telling the truth.
Again, take your time to reflect on what i have said. I do know for a fact, many needs your experience, me included in TA :) and I know you can build your karma here! Until my next questions hehe, please take care of yourself. Have a good weekend!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
transformer123
201 posts
Posted by transformer123 > 2012-08-04 12:16 | Report Abuse
Anymore hope on this counter?