DrBourse TA Help for Beginners

DrBourse said:

Don’t think anybody here in ASF is interested in the DMI..
Regardless of the ‘here and now’, who knows, in the future someone new may realise how valuable the DMI actually is.
In the original ‘Rules for the DMI Indicator’ (below) I decided to show only 5 of the old combinations/signals to watch out for.
When I published that Shortened Version I was unsure what the ASF Members response would be.
View attachment 195704

Recently a few posters have asked questions that have prompted me to release an ‘Expanded Set of Rules for the DMI Indicator’.
The following ‘Expanded Set of Rules for the DMI Indicator’ has 11 combinations/signals.
View attachment 195705
You will note that Rules 1 & 8 refer to the indicator moving ‘Up or Down’.
Whereas Rules 2, 3, 4, 5, AND Rules 7, 9, 10 & 11 refer to the indicator as ‘Above or Below’.
And for Rule #6 see the Other Rules below (2 & 3)

There are a few 'Other Rules', such as: –
1 consider applying Rule 1 or 8, to Rules 2, 3, 4, 5, AND Rules 7, 9, 10 & 11,
2 positioning of the colours carries weight, are they Top, Middle or Bottom,
3 which colours are Above or Below the 25 Centreline, yes the DMI has a Centreline.

There are more, but each one would take a very lengthy explanation – I may reveal more of these rules from many years ago (if I can remember them all).

However, if you can follow and fully understand the above ‘Expanded Set of Rules for the DMI Indicator’ you should have no trouble in identifying several other hidden signals.

Cheers.
DrB.

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DrBourse said:

Sorry folks - bit of an error in my last post.
FWB is NOT an ADR - FWB is an Overseas Exchange - CSJ is the ADR.

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DrBourse said:

Here is an example of another TA Anomaly.
Some stocks react differently when we look at identical Chart & Indicator Settings.
Following are the CSL Charts from 21/1/23 to 11/4/25.
Firstly our ASX:CSL as at COB 11/4/25.
It's a pretty Uninspiring Chart, BUT, There are numerous clues in this chart if you fully understand TA.
View attachment 197406

The Second CSL Chart is for the ADR, FWB:CSL, the same period 21/1/23 to 11/4/25, and it has the same Indicator Parameters.
Can you see the obvious signals ?
View attachment 197407

The RED "K" stands out as an obvious warning signal.
The explanation for the Kicking Indicator is shown in a few previous posts in this forum, but for ease of reference I have included it again below.
View attachment 197408

So, once I see the overnight FWB warning Signals for their CSL, I relate that information to the action the next day on our ASX version of CSL, it obviously adds Vital TA (that most Australians don't know about) to our Uninspiring Chart .

Newbies, if you don't know what the "FWB" refers to, then you need to find out for yourselves.
A clue - its an ADR, as mentioned in previous posts.

Cheers.
DrB.

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DrBourse said:

@eskys
Introduced to the financial markets in 1927, an American Depositary Receipt (ADR) is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or broker... ADR's were introduced as a result of the complexities involved in buying shares in foreign countries and the difficulties associated with trading at different prices and currency values. For this reason, U.S. banks simply purchase a bulk lot of shares from the company, bundle the shares into groups, and reissues them on either the New York Stock Exchange (NYSE), American Stock Exchange (AMEX) or the Nasdaq. In return, the foreign company must provide detailed financial information to the sponsor bank. The depositary bank sets the ratio of U.S. ADRs per home-country share. This ratio can be anything less than or greater than 1. This is done because the banks wish to price an ADR high enough to show substantial value, yet low enough to make it affordable for individual investors. Most investors try to avoid investing in penny stocks, and many would shy away from a company trading for 50 Russian roubles per share, which equates to US$1.50 per share. As a result, the majority of ADRs range between $10 and $100 per share. If, in the home country, the shares were worth considerably less, then each ADR would represent several real shares......


There are three different types of ADR issues:

• Level 1 - This is the most basic type of ADR where foreign companies either don't qualify or don't wish to have their ADR listed on an exchange. Level 1 ADRs are found on the over-the-counter market and are an easy and inexpensive way to gauge interest for its securities in North America. Level 1 ADRs also have the loosest requirements from the Securities and Exchange Commission (SEC).

• Level 2 - This type of ADR is listed on an exchange or quoted on Nasdaq. Level 2 ADRs have slightly more requirements from the SEC, but they also get higher visibility trading volume.

• Level 3 - The most prestigious of the three, this is when an issuer floats a public offering of ADRs on a U.S. exchange. Level 3 ADRs are able to raise capital and gain substantial visibility in the U.S. financial markets.



The advantages of ADRs are twofold. For individuals, ADRs are an easy and cost-effective way to buy shares in a foreign company. They save money by reducing administration costs and avoiding foreign taxes on each transaction. Foreign entities like ADRs because they get more U.S. exposure, allowing them to tap into the wealthy North American equities markets.

======================================================

Each ADR's Ups or Downs, plus other factors, all added together gives me a direction for each individual stock and the industry each stock…

Personally, I refer to my ADR List every morning so I can see what happened to our Australian ADR's, getting that information helps my research into just what MIGHT happen with stocks on our ASX.....

I mainly look at the ADR Chart & Candles for Technical Signals at their COB, then relate that candle to what we may expect today - then I look at say the last week or two and compare that trend to our equivalent stock......

Then if needed I will conduct further analysis....

Let's use Westpac Bank as an example, their ADR (WBK) atm is Down $0.27USD, or 1.39%, so in theory our WBC, should reflect that % Drop, BUT then you need to add in our Domestic Economic Climate, and our relative Australian problems and Announcements that may occur between the DJIA Closing time, and the End of Our Trading Day, then obtain news of any of those factors that occurred in the "USA" during their Trading Day..... Not easy accessing all that info, but can be done with the help of some American contacts, in other words I try to get the American version/explanation of What Caused the 1.39% drop....

It's not an EXACT Science, but it usually works for me....

There are DOZENS of other Aussie Stocks listed on numerous other Exchanges, like NYSE, OTC, NASDAQ, Germany, NZ, Sth Africa, Canada, etc, etc....

You can find them all by going to the FREE Web Site - https://www.marketwatch.com

When you get to that site Select "Markets", Then hit the Search Symbol to the right, that gives you a Black Window, where it says "enter a symbol or keyword" you need to try 2 ways, first enter WBC, then WAIT, DO NOT HIT ENTER, as the search will appear automatically, if that does not produce results, enter "Westpac Banking Corp", that may give the results you are looking for....

Hope you can follow all that....


I would like to point out a minor anomalie - ADR's are usually quoted “in Aussie $$s - the rises and falls are usually against last evening's local USA or UK close" - I prefer to use Bloombergs "Actual Days Trade Figures", they relate to the Days Trade only - so in the USA O'nite BBL (BHP) traded down $1.80 (or 3.07%) during the day, HOWEVER it may have been down 0.57c compared to their yesterdays Close – make sure you understand the diff.


Note: An ADR on the OTC Exchange means that it is an “Over The Counter” Stock – it’s basically just another group of ADR’s.
Another example:
=========================================
Look at Page 109, post #325 on 12/4/25.

It’s an example using the ADR for CSL on the German Exchange (FWB), and our CVSL (ASX) by looking at the Kicking Indicator.
============================================
Here is part of my ADR & OTC List.
View attachment 199036

Good luck with all that eskys.

Cheers DrB.

Click to expand...

DrBourse said:

1@eskys
Introduced to the financial markets in 1927, an American Depositary Receipt (ADR) is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or broker... ADR's were introduced as a result of the complexities involved in buying shares in foreign countries and the difficulties associated with trading at different prices and currency values. For this reason, U.S. banks simply purchase a bulk lot of shares from the company, bundle the shares into groups, and reissues them on either the New York Stock Exchange (NYSE), American Stock Exchange (AMEX) or the Nasdaq. In return, the foreign company must provide detailed financial information to the sponsor bank. The depositary bank sets the ratio of U.S. ADRs per home-country share. This ratio can be anything less than or greater than 1. This is done because the banks wish to price an ADR high enough to show substantial value, yet low enough to make it affordable for individual investors. Most investors try to avoid investing in penny stocks, and many would shy away from a company trading for 50 Russian roubles per share, which equates to US$1.50 per share. As a result, the majority of ADRs range between $10 and $100 per share. If, in the home country, the shares were worth considerably less, then each ADR would represent several real shares......


There are three different types of ADR issues:

• Level 1 - This is the most basic type of ADR where foreign companies either don't qualify or don't wish to have their ADR listed on an exchange. Level 1 ADRs are found on the over-the-counter market and are an easy and inexpensive way to gauge interest for its securities in North America. Level 1 ADRs also have the loosest requirements from the Securities and Exchange Commission (SEC).

• Level 2 - This type of ADR is listed on an exchange or quoted on Nasdaq. Level 2 ADRs have slightly more requirements from the SEC, but they also get higher visibility trading volume.

• Level 3 - The most prestigious of the three, this is when an issuer floats a public offering of ADRs on a U.S. exchange. Level 3 ADRs are able to raise capital and gain substantial visibility in the U.S. financial markets.



The advantages of ADRs are twofold. For individuals, ADRs are an easy and cost-effective way to buy shares in a foreign company. They save money by reducing administration costs and avoiding foreign taxes on each transaction. Foreign entities like ADRs because they get more U.S. exposure, allowing them to tap into the wealthy North American equities markets.

======================================================

Each ADR's Ups or Downs, plus other factors, all added together gives me a direction for each individual stock and the industry each stock…

Personally, I refer to my ADR List every morning so I can see what happened to our Australian ADR's, getting that information helps my research into just what MIGHT happen with stocks on our ASX.....

I mainly look at the ADR Chart & Candles for Technical Signals at their COB, then relate that candle to what we may expect today - then I look at say the last week or two and compare that trend to our equivalent stock......

Then if needed I will conduct further analysis....

Let's use Westpac Bank as an example, their ADR (WBK) atm is Down $0.27USD, or 1.39%, so in theory our WBC, should reflect that % Drop, BUT then you need to add in our Domestic Economic Climate, and our relative Australian problems and Announcements that may occur between the DJIA Closing time, and the End of Our Trading Day, then obtain news of any of those factors that occurred in the "USA" during their Trading Day..... Not easy accessing all that info, but can be done with the help of some American contacts, in other words I try to get the American version/explanation of What Caused the 1.39% drop....

It's not an EXACT Science, but it usually works for me....

There are DOZENS of other Aussie Stocks listed on numerous other Exchanges, like NYSE, OTC, NASDAQ, Germany, NZ, Sth Africa, Canada, etc, etc....

You can find them all by going to the FREE Web Site - https://www.marketwatch.com

When you get to that site Select "Markets", Then hit the Search Symbol to the right, that gives you a Black Window, where it says "enter a symbol or keyword" you need to try 2 ways, first enter WBC, then WAIT, DO NOT HIT ENTER, as the search will appear automatically, if that does not produce results, enter "Westpac Banking Corp", that may give the results you are looking for....

Hope you can follow all that....


I would like to point out a minor anomalie - ADR's are usually quoted “in Aussie $$s - the rises and falls are usually against last evening's local USA or UK close" - I prefer to use Bloombergs "Actual Days Trade Figures", they relate to the Days Trade only - so in the USA O'nite BBL (BHP) traded down $1.80 (or 3.07%) during the day, HOWEVER it may have been down 0.57c compared to their yesterdays Close – make sure you understand the diff.


Note: An ADR on the OTC Exchange means that it is an “Over The Counter” Stock – it’s basically just another group of ADR’s.
Another example:
=========================================
Look at Page 109, post #325 on 12/4/25.

It’s an example using the ADR for CSL on the German Exchange (FWB), and our CVSL (ASX) by looking at the Kicking Indicator.
============================================
Here is part of my ADR & OTC List.
View attachment 199036

Good luck with all that eskys.

Cheers DrB.

Click to expand...

DrBourse said:

The pages nr 109 quoted above is wrong, the post nr 325 is on this pageI

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DrBourse said:

And here is another clue, look at what happened to the SP when the CCI gave its Entry Signal on 1/4/21, the CCI went on to a High of abt 186, (that's way above Rederobs CCI Min/Max 100) it then stayed high while the MFI rose to abt 66 then gave its first sell signal on 23/4/21.
Also note that the CCI on NCM hit well above approx 150 on abt 14 times in the last 12 mths (sorry to blow away your CCI 100 limit theory Rederob)

That’s a pretty reasonable trade IMO, that’s what can happen with the CCI SHH, it gets to that SHH then Stays Reasonably High, during that period is when the MFI comes into play.

View attachment 135084

Now have another look at the NCM Chart from 15/12/21 to 31/12/21, what do you all think NCM’s SP will do over the next week or so.

Now don’t you wish you had bought into NCM on say 17/12/21, in case you missed it Rederob that's getting pretty close to your Xmas New Year Danger Zone..

How are you doing Rederob, still with me, Huh.

Asking polite questions will get you a lot further than dropping snide remarks – perhaps you should try it sometime.

I just might drop another dozen or so clues into the workings of the CCI/MFI/LR/Gaps game, who knows.

Get off your butts and dig into TA yourselves, I will occasionally provide the entry level clues just to get you all started.

BUT, I will only post within the DrB Forums from here on, too many complaints abt me jamming up 'strictly Financially Based Forums', that way I won't ruffle too many precious feathers.

Cheers.

DrB

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