Here is another kind of chart.
Its one that I refer to every day to get a quick overview.
I'm sure many have seen it before.
This post isn't for you, obviously.
I do think that strict TA often gets it wrong with Galaxy. Its driven more my FA.
Just look at aussiebulls. 7 out of the last 10 sell recommendations have been wrong.
However - this ichimoku one has the helpful inclusion of the kumo (the cloud) gives you an idea of how positive the rise in the stock and at what points a falling price indicates a possible period of stagnation.
It projects into the future too by charting an average of past prices - and gives a good indication of when the stock enters a stale period.
Once a stock descends into the cloud (or below it as one of our friendliest of competitors has now fallen) - there is a great deal more weight placed on its negative movements and likelihood of the stock becoming range bound, or tanking quickly.
Conversely, positive moves above the cloud are weighted more strongly, and negative movements are considered less important whilst they remain above the kumo.
The red and dark red lines are price vs a weighted average carried forward. If you're above the dark red line then the trajectory is positive.
You can see Galaxy hasn't so much as touched the cloud for the last 7 months or so.
I think of it as a flight over a range of mountains - those mountains being loosely indicative of the hopes of the share holders in the stock. Once you descend into the mountains you need to be very careful...
Once you're below them - things are looking very tough.
Galaxy's flight has been soaring.
It has been reading an unrelenting BULL indicator for virtually the whole period.
It was invented centuries ago by japanese rice traders.
Thought some newbies might not have come across it before and find it a quick handy charting tool, as I do.
www.ichimokutrader.com - change the exchange to Sydney and type in GXY etc.
Its time delayed - so the day's action doesn't pop up for a couple of hours after trading has finished.
Requires flash so won't work on your iphones etc.
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