Good Morning and Welcome to the XJO Monday Thread
News for Today (AEST)
The XJO moved sharply lower on Friday in response to the overseas selldown.
The spread was wide & close was low,
however, volume (value traded) was again a little below average, as it has been on most downbars recently.
The lower volume suggests that Serious Supply has not yet entered the market.
To slice through the potential support levels below, I expect an increase in volume (to the downside) will be needed.
All eye's will be closely watching for follow through supply now....
Just how the Index responds to this overseas weakness will give an indication of the resilience in our market (or not).
The uptrend line & 'mini' channel remain intact for now, and there are a number of potential supporting levels below, should they be required.
Next week should be interesting for sure.
I have not used indicators much on charts, and after a brief discussion with Wayward on Friday night,
I thought I would take the liberty re-posting a little of the discussion, so it gains a wider coverage, especially for the lurkers on the XJO thread, as I found it enlightening.
I hope Wayward does not mind....
......you know my opinion on indicators.
Doesn't matter what you use, I'll give you two rules that will put you miles in front.
1: Make the indicator fit the chart.
The philosophy that one parameter fits all is a stupid one, it assumes that all stocks move in identical cycles.
Find the right parameter for that chart and expect it to be different on the next chart.
2: Price doesn't give a rats what an indicator is doing.
Only use indicators to support/rebut a price structure, so you could apply a stoch to assist with entries/exits on a H&S for example or OBV to assist with trend strength.
Never take a signal from an indicator and expect price to comply with what the indicator says.
Wayward1
Good Trading and Investing
cheers
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