charts for dummies, page-8

pete, The Secret of Candlestick Charting by Louise Bedford was my beginners book. There are more books by her worth looking at too.

More recently, I've gained a lot more insight by reading Trading for a Living by Dr Alexander Elder. He provides excellent tips for understanding indicators such as RSI and MACD. Would have saved me a lot of money in IMI last year if I'd known how to read the signals properly.

Remember to read candlesticks at the close prices, ignore the tails.

Sure, there's no way of predicting unforeseen news, but the 2nd peak in CNP (whilst reaching an old high) in May 07 showed a weaker RSI (relative strength index) signalling the downward trend. Always easy to read in hindsight, but experience helps one to take these signals more seriously when they arise again.

Currently CNP is showing bullish signals, so I am happy sit this out.

I'd post a chart, but have just changed from Market Analyser to Incredible Charts and haven't quite worked out how to post them clearly. Can highly recommend I C @ $18/month. It's complicated, but lots of useful tools and tricks to using them

Cheers!