Moving averages and trade entries

[vk2cjc]

Hi all. I'm just starting out and would appreciate the benefit of your collective wisdom.

Firstly. When using a moving average to indicate a good buy point. Are you guys using a 20 day MA? That seems best to me, or at least to suit my level of risk.



In the above, the stock is turning up, and may be above the 20 day MA tomorrow. But its following the All Ords almost exactly. Does this mean it isnt worth trading, as its the market that rising, not the stock? Or is any profit good profit, regardless of reason?

I was wondering what your thoughts were.
Thanks.

 

[burglar]

Re: Beginner looking for adivse

Hi all. I'm just starting out and would appreciate the benefit of your collective wisdom.

There is much collective wisdom already posted.
Sir O has a wonderful thread for beginners:
https://www.aussiestockforums.com/forums/showthread.php?t=14370

The cliche you seek is: "All boats rise with the tide!" And yes you should try to pick the direction of the market, the sector and the company to get the percentage shot.

Best of luck!

 

[Gringotts Bank]

Re: Beginner looking for adivse

With ESG, I'd wait for the inverted head and shoulders pattern to pass it's neckline, which is in the low 70's approx. (depends when/if it's breached).

Have a look on bulkowski's pattern site and you'll see the pattern I'm talking about. I know you're just starting, but patterns are a good thing to learn early on. The 'shoulders' are at 2-12-10 and 17-5-11. Big pattern. Could pay off if you time it right.

Forget MA's altogether.

 

[vk2cjc]

Re: Beginner looking for adivse

I have been reading about head-and-shoulders patterns. But missed that one completely
I guess I was thrown by the 10% difference in shoulder hieght.

 

[Gringotts Bank]

It's inverted remember, not a straight H&S.

The different height of the shoulders is quite common and doesn't usually affect performance after breakout.

Draw a line between the peaks at 18-1-11 and 29-4-11, and that is your neckline (entry point).