I thought I might follow up the above chart and comments following the usual derogetory comments from non chartists and some positive comments from novices to try and give an insight to the thoughts of a chartist.
I use a scanner with parameters desided by me to bring to my attention,any company that I am interested in, giving me advanced warning of a possible change in direction ie reversal. ie from a day to a week or so.
Hopefully I can show that trying to pick bottoms dosnt need to give you a smelly finger.
The above chart is typical of the chart I get.
A follow up to a comment from
@trader66 post #66191642
Aparently I wasnt suposed to respond on that thread.
"
The closest targets I have to here are 1.10 and 1.03.It looked fairly solid at 1.20 but it has obviously gone down another legWe need to watch the indicators as we get closer."
On a couple of posts down I noted that I had omitted to point out the obvious support down at the low from Sept 27th at $1.00The resposnse to this on that thread was that I had the chart up side down......we will see, and hopefully you will see where the comments like yeh I know its going up if its not going down etc come from....
To the current chart.
From the above chart where I sugested that this might be worth a look (meaning keep an eye on this) we can see that the area of interest at around 1.20 although giving confidence did not hold. disclosure... i did get some at a 1.20 just in case. (i often get in a bit early.
AT the time there were three give aways as to why this was not ready to turn at the time.
1. the macd graph and line lines havnt crossed over as yet... 2. the dmi D- (red dotted) line hasnt turned down yet and 3. theRSI fast (red) and slow (blue moving lines have not crossed over yet.
From there the above predicted support levels at 1.10 and 1/03 panned out perfectly... ie the next low was 1.10 (on the 13th and then we hit the 1.03 today.
You will note that the macd line and graph are now closer to crossing over.
The DMI turned down but has turned back up again and
The RSI fast and slow lines havnt crossed over as yet.
Note that the RSI a re usually the first indicator to give a positive signal.
Ok so we are not there yet so we may go sideways a bit more or still move down a bit more yet. The higher finish on todays bar was encouraging as the vol has improved.
Note.. we dont need to know wheter this is going up or dow at this minute. All weneed to look foris the signal of a change in direction.
Once we do get a confirmation of change in drection, it is possible to use a calculation to predict the resistance or support points within that move.
I will post another chat below showing the expected points from on the way down to where we are now.
