Australian (ASX) Stock Market Forum

DrBourse TA Help for Beginners

Another Example for Beginners....
The following Chart of BHP on Last Night’s NYSE…
BHP Cht NYSE 20240502.png

Note the following…
2/5/24 was a RED Candle, so Sellers were still in Control at the End of The Day…

The CCI 10 BLUE Line has just crossed up through its WMA 10, so that’s My 1st Entry Point,… BUT that needs Confirmation of some sort, A Green Candle would be Great…

The DMI 7 (as per the RULES), shows that the GREEN Line is UP, and the RED Line is DOWN, that combo suggests a ST Uptrend… BUT that needs Confirmation of some sort, The RED Line going DOWN through the BLUE, and the GREEN Line continuing UP would also be Great….
The last Entry is SUGGESTED if/when both the BLUE & GREEN Lines go above the RED Line….

The MFI 30 is just below its Centreline, so it is still just “Under Water”… That needs to cross UP through “to ABOVE it’s Centreline”…


Now, look back to 13/11/23 (the Blue Dotted Vertical Line) – on that day the CCI gave its Entry Signal – the DMI GREEN Line was UP, and the RED Line was DOWN – the next day, 14/11/23 the GREEN & BLUE Lines are above the RED… The MFI was already ABOVE it’s Centreline…

Look at where the SP went after that combination of CCI, DMI & MFI Signals were given.

Admitedly, Those of you with the God Given Ability to correctly call a ST Trend Bottom MAY have been able to enter on 8/11/23 - Personally, I don't like Falling Knives...

Once again - Good Luck with all that - AND REMEMBER that TA is a DAILY Event... So DYOR....

Cheers...
DrB.
 

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Another Example for Beginners....
The following Chart of BHP on Last Night’s NYSE…
View attachment 176168

Note the following…
2/5/24 was a RED Candle, so Sellers were still in Control at the End of The Day…

The CCI 10 BLUE Line has just crossed up through its WMA 10, so that’s My 1st Entry Point,… BUT that needs Confirmation of some sort, A Green Candle would be Great…

The DMI 7 (as per the RULES), shows that the GREEN Line is UP, and the RED Line is DOWN, that combo suggests a ST Uptrend… BUT that needs Confirmation of some sort, The RED Line going DOWN through the BLUE, and the GREEN Line continuing UP would also be Great….
The last Entry is SUGGESTED if/when both the BLUE & GREEN Lines go above the RED Line….

The MFI 30 is just below its Centreline, so it is still just “Under Water”… That needs to cross UP through “to ABOVE it’s Centreline”…


Now, look back to 13/11/23 (the Blue Dotted Vertical Line) – on that day the CCI gave its Entry Signal – the DMI GREEN Line was UP, and the RED Line was DOWN – the next day, 14/11/23 the GREEN & BLUE Lines are above the RED… The MFI was already ABOVE it’s Centreline…

Look at where the SP went after that combination of CCI, DMI & MFI Signals were given.

Admitedly, Those of you with the God Given Ability to correctly call a ST Trend Bottom MAY have been able to enter on 8/11/23 - Personally, I don't like Falling Knives...

Once again - Good Luck with all that - AND REMEMBER that TA is a DAILY Event... So DYOR....

Cheers...
DrB.
Refer to my Post #261 dated 3/5/24, where I looked at BHP on the NYSE for the overnight signals….
1715557650439.png

Now, as a follow-up, I show the chart for BHP on our ASX as at Friday Close 10/5/24…
BHP Cht 20240513 0950hrs.png

Although we were given a CCI 10 Entry Signal on the BHP NYSE Chart, on our ASX Chart for the next week after 2/5/24, the DMI 7 & MFI 30 failed to give me any guidance or confirmation that BHP MAY be heading for a ST Uptrend..

So that shows the benefit of waiting for some form of confirmation after receiving the original CCI 10 Entry signal….

Now the MFI 30 & the DMI 7 both suggest a ST sideways move…

Need to watch the DMI & MFI over the next week, as this may still be a viable trade should these 2 Indicators move in the right directions…

Cheers..
DrB
 
For those of you that follow my posts, you will realise that I use the CCI 10 (pages 108 & 109) as my "Early Warning Indicator"... BUT I Never BUY on that Indicator Alone - sometimes it is just a bit too early with it's signals....

I often use it in my Scanner, My parameters would be. "any Rise Up From Below -100", and Secondly "where the CCI 10 Crosses UP Through it's WMA 10".....

Then after that initial "early warning", I would watch the DMI 7 (pages 105, 106 & 107) & MFI 30 ( page 95) & Candlesticks & Other TA Tools of Trade, for confirmation signals....

As the 'MeerKats say' - SIMPLE...

Just follow the Rules....

1715559265336.png
Cheers,,
DrB.
 
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