weekend charting feb 6/7, page-157

Hi Cham, thanks for your feedback. Ive inserted respones in caps to your post as it will be easier: (the sooner HC gets a quote button the better)

I don't mean to sound accusatory. I apologize if I'm coming across that way, Im more or less intrigued.

NO OFFENCE TAKEN, THANKS FOR THE FEEDBACK..

Channels aren't trends as such in isolation. They can form part of a broad trend or they can correct a trend, as is potentially the case now with other down-sloping channels that can be seen in the market atm.

YOU'RE RIGHT. I SHOULD BE CALLING MEDIUM TERM DOWN TRENDS "CORRECTIONS". THANKS FOR BRINGING THIS UP, IT WILL SAVE ME A LOT OF PAIN TRYING TO EXPLAIN WHAT IM TALIKING ABOUT.

A down trending channel doesn't mean that a market or instrument is in a broad down trend.

I DONT THINK SO EITHER. IT ALL DEPENDS ON THE BROADER PICTURE. WHAT PRECEEDED IT ETC.

The best channels on a chart print when the market is in a corrective phase.

I HADNT NOTICED THIS. THERE SURE ARE A LOT OF GREAT CHANNELS WHEN STOCKS ADVANCE.

In other words (and just reverse this for a broadly downtrending instrument. For example see the XAO on a daily chart start a trendline on 9/7/04 and draw it across the next high. Then put a parallel line underneath the low of 26/7/04 you can see the result.

A CHANNEL LIKE THIS ONE WOULD BE SEEN AS AN UPTREND BECAUSE IT DIDNT HAPPEN AFTER A DECLINE. IOW ITS NOT A PULLBACK TO A PRIOR TREND - ITS A CONTINUATION.

You can also have downtrending corrective channels etc, etc.

ABSOLUTELY. HAVNT YOU JUST CONTRADICTED YOURSELF THERE BY CALLING IT A CORRECTIVE DOWNTRENDING CHANNEL?

There is more to be said but Ill leave it at that.

PLEASE TELL ME MORE IF YOU HAVE THE TIME. I AM A SPONGE...LOL

With reference to targets I use a combination of many factors to arrive at targets.

SO DO I...I TAKE INTO ACCOUNT FAR MORE THAN WHAT I POST HERE ON THESE THREADS.

That said, a target is a price point at which I watch. "if x happens, then y is likely to happen after that. If it does then I will take z action". A level may also be referred to as support/resistance, or even as a target.

I also consider levels to be important for many different reasons. A level isn't necessarily a point/area at which a trader will take action. It is a point/area that a trader will pay close attention to, and then take action if action is required, see above . Knowing price structure and how price may react can also be looked at.

I AGREE TO ALL OF THE ABOVE.

Once again there is no holy grail .Different traders will arrive at different levels based on their method of analysis. Trading's a personal thing. More to the point, TA is a personal thing. I don't know of two people who use TA extensively in their charting analysis/trading decisions based on a chart who do things the same way, or even similarly to a large extent (particularly the actual trade itself).

I THINK ITS A REAL ART AND EVEN A FORM OF SELF EXPRESSION. EVERYONE WILL SEE THINGS DIFFERENTLY IN A CHART, BUT ITS UNCANNY HOW MOST OF THE TIME WE COME TO SIMILAR CONCLUSIONS.

It's all about throwing hings on a chart and seeing what works for you, your style of trading and your risk mentality. Put things on there, strip it back and see what works.


Anyone who has been in the market long enough knows that definitive predictions are absolutely impossible and it's all about the balance of probability and risk management.

I HAVE DEFINATIVE TARGETS BUT DEFINATIVE PREDICTIONS ARE IMPOSSIBLE. I AGREE.

That said fundamental analysis should never be overlooked depending on your time frames and investment risk profile.

I TOO COMBINE FA AND TA. I THINK IT PUTS THE ODDS WELL IN YOUR FAVOUR.

There is much more to be said about indicators such as MAs and the like perhaps this is not the time and place.

ITS ALWAYS THE TIME ON THE WEEKEND THREAD! PLEASE, I WOULD LIKE TO HEAR WHAT YOU HAVE TO SAY ABOUT THEM. YOU SOUND LIKE YOU HAVE A LOT OF EXPERIENCE.

Cheers

THANKS FOR YOUR FEEDBACK.