Technical Analysis

Why TA is so important in trading? Anyone like to discuss it here?
Wysiwyg i tried to PM you but seem u blocked me is it?

Here is 2 charts of CTS. I dabble with candles and shapes but prolly 60/40 fundy.I can`t see a bludy thing with these charts but it`s prolly my untrained eye.Take it away e.c.

Wysiwyg said:

Here is 2 charts of CTS. I dabble with candles and shapes but prolly 60/40 fundy.I can`t see a bludy thing with these charts but it`s prolly my untrained eye.Take it away e.c.

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Hi Wysiwyg,

This stock is in uptrend form. Good potential to go another level. I will not say more here and i don really know wat is the limit for my words cause admin will kick me afterward. But above is my view & please see the PM i sent u, thanks.

ecfutures said:

Hi Wysiwyg,

This stock is in uptrend form.

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Eh???

wayneL said:

Eh???

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Well put Wayne.

I'm not sure how this is in a confirmed uptrend. Looks like it may have hit a bottom, of sorts, and is tracking short term sideways now. There is a hint that it might be pushing up on the indicators here, but up trend? Let's see some EOD higher lows and highs for a start. Breaking 40 EOD is the first step.

Would like to know the rational for this to be in an uptrend other than ownership perhaps...

Maybe I'm being too conservative with the last few days action and the indicators...

Seems to me to be an obvious set up for conjecture.
"Why is T/A so important"
Followed by total ineptitude.

Time wasting there are already 100s of threads on the T/A topic.

tech/a said:

Seems to me to be an obvious set up for conjecture.
"Why is T/A so important"
Followed by total ineptitude.

Time wasting there are already 100s of threads on the T/A topic.

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This is the beginners lounge Tech!

Return to where others have the same experience and brain capacity as you.

Obviously it's not here. In your opinion.

kennas said:

Well put Wayne.

I'm not sure how this is in a confirmed uptrend. Looks like it may have hit a bottom, of sorts, and is tracking short term sideways now. There is a hint that it might be pushing up on the indicators here, but up trend? Let's see some EOD higher lows and highs for a start. Breaking 40 EOD is the first step.

Would like to know the rational for this to be in an uptrend other than ownership perhaps...

Maybe I'm being too conservative with the last few days action and the indicators...

Click to expand...

Well, for me, I just like to make trading simple & easy, so same to my life. In whatever stocks software, we normally see arrow up & down, do we see arrow pointing side (for sideway)??? Perhaps there are but very few only.

In my trading system, I only recognize 2 trends; uptrend, downtrend. For my trading as well, I only hoping for 2 scenarios to get profits; either up or down (except options trading). There is no doubt that side way is just a beginning of a downtrend or uptrend, the stock price will not forever stagnant & going sideway. That is the reason I defined CTS is in uptrend now.

If say it really breaks the recent low in near term then only we define it as downtrend. My system may seem a bit aggressive because it is useful for short & medium term. In TA, we normally go for short & medium term compare to fundamental which may ask us to hold a share for years.

tech/a said:

Seems to me to be an obvious set up for conjecture.
"Why is T/A so important"
Followed by total ineptitude.

Time wasting there are already 100s of threads on the T/A topic.

Click to expand...

Hi friend,

No doubt that TA is important for markets analyse & decision making when entering a market. As we know, there are 2 types of market analysis method: fundamental and technical analysis. Fundamental analysis is to provide a foundation of a certain company by examining the company's assets, debts, management, financials and operations, sales, profits, growth potential and competition. These information's enable fundamental analysts to gain insight on a company's future performance. For commodities markets, with no doubt that demand and supply still the main fundamental issue to be analyzed in defining the price of products.

Different from fundamental analysis, technical analysis (TA) ignores the company fundamentals performance and instead tries to forecast the changes of price by studying the market base on historical data generated by the process of trading. Charting interpretation is the most important part in TA where probabilty will be applied into various kinds of indicators such as Moving Averages, MACD, RSI, Momentum Index and etc. to predict the market's trend.

Why TA is consider better than FA? This is because collecting and analyze financial information's for a company is very time consuming. Besides, we cannot really see the company's management and internal problem by merely study its financial information. Can you see the subprime crisis which hit giant investment banks before it happens? What happen to the investors who buy their stocks at all time high base on their fundamentals analysis on these banks now? Obviously they have to wait for another cycle time where when these banks staritng to clear up their mess & make the profits into green then only the price will(OR MAYB WILL) back to their buy price (not yet profit frm there).

My objective is to make trading easy and profitable. TA is base on probability and most of the trading decisions are made by our own self. Definately there will be a sell signal occured on their stock price when subprime hit these bank. If we able to short sell the stocks at that time & follow the trend to buy back again at low when buy signal shown, this would be better than u sitting there & waiting for the rebound for no end. No offence on what I talk above, just for sharing.