FFX_Chart Only Thread !, page-293

Outstanding TA here from quite a few informed posters, and I hope this info backs up what has already been posted..

Here’s Friday’s chart, I’ve set up my app for my trading and TA style as I analyse investor sentiment..

This is my interpretation of the numerical stats and transforming into a behavioural analysis using patterns I see.. ie I develop an understanding of what’s the most likely direction “the market” will take over the next few trading sessions..

When analysing sentiment its very much like an ocean swell, it starts small and if all the indicators line up, the momentum keeps it going and it grows, what this doesn’t do is analyse share price action/data to try and predict the future price of a stock, although I do get a relative ballpark and it’s on the money the majority of the time as my inner circle can attest too lol...

The share price always follows the sentiment, not the other way around..

So in the context of a preamble, this is solely my own musings, my own research, not financial advice, dyor, yadda yadda

I’ve applied this methodology to well over a hundred equities, cfds and index’s.. in my experience and research they all follow similar patterns...

White Triangle - Entry signals - you can see the pattern here previously, a number of entry signals before the last rebate/leg up/run.. if I go back in the histogram, I see the same patterns.. even in downtrend these are handy signals to observe..

White Circle - Uptrend strength - you can see the uptrend here is supported by the width of the divergence on the slingshot.. uptrends and downtrends always the follow sentiment, I look for an upcoming pattern change when the slingshot starts to level out..

White Cigar Shape - Investor Sentiment - The light green bars are incrementing upwards nicely, this is what you want to see on a stock that has very good price support, it means investors are keen on the stock and are willing to pay for it.. what I’m looking for on these charts is the plateau then the dark green bars appearing, which here on ffx, i don’t think we will see until mid next week.. that indicates a change in the pattern, buuutttt, it’s gotta line up with other indicators and what’s going on fundamentally, otherwise it could be a furphy... I can also tell the overbought/oversold condition using this indicator with other data..

Fundamental analysis always underpins technical analysis.. not the other way around.. although there are unicorns out there that defy some of these parameters .. but hard to pick by definition alone, although it can be done with a bit of luck

White Arrows- The squeeze - Don’t think of this as a short squeeze, think of it in Bollinger terms (narrow then wide bands squeezing and releasing), black crosses are on, white are off.. what I’ve come to realise is that when the squeeze is off, in a positive uptrend and a buy signal has occurred, the share price moves north legging up.. on a sell signal the share price tends to retrace with a volatile trading range of 10-15% of median for the pattern (interestingly the retrace mostly aligns to fibs retracement).. however when in a downtrend the opposite occurs but volatile range stays relatively consistent on the leg downs.. fundamentals are again the biggest driver here..

White star - Moving Average Convergance Divergence - Green is the MACD itself, Yellow the signal line (9/26 days ema respectively).. Green and Red dots are the buy and sells on the signal crosses, the bars I don’t pay much attention too... The relationship with these guys is similar to magnets, the macd moves the signal is drawn to it relative to time.. so here on ffx this pattern is very strong, the macd is running in a parallel pattern divergent north of the signal line which is a nice incremental increase reflecting the share price that’s fully supported by the uptrend.. I’m looking for a change in the current pattern when the macd starts to converge towards the signal line then ultimately crosses and diverges south...

The purple line I drew demonstrates the macd behaviour for a big increase in share price/volume/liquidity in a relatively short time frame, usually (there are exceptions) these indicate a higher potential for volatility, overbought conditions, pump n dumps, or they can turn into those unicorn events..

So in conclusion, although I’ve built a pyramid to get to the points here, it’s been for a reason.. maybe this will help others in weeding out those equities that have more potential than others.. this style of analysis works for me, but it may not work for others as data can be interpreted many ways..

There are many variables, and I always use multiple data information sources to confirm my analysis such as volume, bid/offer spread, course of sales, broker data etc etc..

Hope this helps and good luck holders