Good evening. I have created this chat board for those on the Fitbug and Horse racing tips board who have shown an interest in using candlestick charts and the T line to assist in spotting potentially high probability trades. The candlesticks are used primarily to spot potential trades and the T line to confirm the entry and exit strategy. I strongly recommend that everyone should educate themselves and become familiar with candlesticks terminology and formations, which is an ancient Japanese system to visually illustrate investor sentiment in any particular time frame covering the whole spectrum from 1 minute to yearly charts. The longer the time frame the more reliable the chart. I do not propose to teach the art of candlestick charting as I am still a student. The T line is the exponental moving average set to 8. see below a link to my mentor's website Stephen Bigerlow. Don't pay for any education there is a wealth of it all free on the website itself if you navigate round it clicking on all the links. The T line can be used on AIM shares, will not predict a spike but can help make decisions after the INITIAL spike. The purpose of this thread is really for posters to spot AIM shares where the T line has just been crossed and report it here. Understanding and spotting candlestick formations would be a bonus. Not prepared to debate whether charting is relevant to AIM.Either one accepts it gives one an edge or not. If one accepts this thread is for you. If one does not accept then this thread is not for you. I am trying to load a link to an excellent webinar where Stephen explains how to use the Tlines set at 3 and 8 to enter and exit trades without revealing my identity. For now visit his website sign up for the FREE news letters and navigate round the website to get as much FREE info as possible.Regarding the T line for now just use LSE charts select exponental average 8 and any time frame to establish if a particular share price is below or above the T line. Basic rule if price is below T line don't buy if above T line maybe a buy.
http://www.candlestickforum.com/PPF/Parameters/16_20_/candlestick.asp Good luck everyone.
LEFKOSIA, Following thread well done.
will be looking at Fitbug fitb, CNEL, UKOG, MTV charts later today.
Morning Lefkosia, Thank you for your links, I do use basic candle sticks signals but this looks very interesting. I do use Ichimoku on a daily basis and find that it is an excellent trading tool. I look forward to hearing more.
Good morning NewForestLad. If you are happy with your trading style and strategy and it works for you carry on with it. This thread is for posters who do not appear to have any such thing and to open their eyes to using charts, even on AIM, instead of trading blind. However I welcome any positive comments suggestions and above all encourage all posters to draw attention to AIM shares that have spiked for whatever reason so that its chart may be reviewed to see if it is worth trading. I missed out on cnel's initial spike @ 1.5 as I was unaware of it until it was brought to my attention @ 3p but fundamentals and chart reaction make it look interesting.
I posted the following yesterday 'just noticed ukog is on the move again also cnel looks like it may be a goer. However may have missed the boat on both, BUT using my T line would have pin pointed a much earlier entry when price first started to take off. Everyone who spots a potential Aim riser when price closes above the Tline can post as I don't have time to monitor all aim shares. In any event I can't post so much anymore as I came close to divorce last week because I was spending too much time posting and on the gee gees and neglecting work and trading forex which pays the bills.'
I won't post again until this evening but in the meantime LSE's charting facility is poor to say the least. Moneyam's is much better but does not have the lower time frames of 1 min up to daily. I suggest everyone who does not have good charting facilities registers with IG for a spread betting account. Be warned after 2 weeks the demo platform loses all the shares. To have access to shares one needs to open a live account. One does not need to spread bet but it will give one access to a far superior charting facility and the 5 and 10 minute charts for use with the 3 exponental moving average.
Will post again after 18.30 hopefully if I have shifted my accountancy work.
good stuff lefko - will follow with interest.....thx for setting up
FITBUG chart update. Sad to say still not a buy or top up. Price is still closing below both the 3 and 8 EMA and trading sideways with indecision candles at the end of a downtrend which could mean a reversal might happen. One needs a bullish candle to close above the T line before considering to buy. Could breakout going south but that would mean the previous support of 1.5 had been broken and we could be looking at 1p and beyond. Don't forget it was 0.38p last year but then lot of things have happened since then. A lot depends on full year results and the market's reaction to them.
MTV chart update.Sad to say still not a buy or top up. Price is still closing below both the 3 and 8 EMA and trading sideways with indecision candles at the end of a downtrend which could mean a reversal might happen. One needs a bullish candle to close above the T line before considering to buy.
CNEL chart update. This is looking good. Price closed today above the previous high and above both the 3 ema and the Tline. Fundas if one accepts the rampers view of them if good news this week could push price higher but word of caution. Is it already in the price? I don't know. Never like buying at the top. One to watch as train may have left the station. Chart shows the best time to buy was 23 November @ 1.80ish if not already invested.
Hi Lefkosia thanks for this - will be more usefull to me next year when I am officially made redundant and have to earn another living and thinking of doing some day trading.
UKOG Another one where the train has left the station. After a very good bullish run, today saw an engulfing bearish candle, not totally unexpected as price had rushed ahead far above the T line on the daily chart INDICATING that some profit taking might occur. Price has also closed below the 3 ema. Taken together if price opens and goes lower tomorrow time to crystalise any profits into hard cash. Can always buy in again if price continues to go north again. If not sure what to do play the Tline video above again to refresh your mind and check what an engulfing candle could indicate.
Good evening Emblaze 1 . All the above based on daily charts. Don't forget to check lower time charts eg 4 hour 1 hour 10min and 5 min charts. They could get one in and out earlier than the daily chart. I take your point about day trading but one can still use the daily chart to plan longer time trades and with today's apps one can still check price during the day, even in a full time job and with stop losses and stop profit orders in place
CNEL Daily and 4 hour looking good. price above 3EMA and T line. 1 hour looking toppy @ just under 4p and both 10min and 5 min closed under the 3ema and Tline.Could be some profit taking tomorrow as today which took price back to 3.3.
FITB no change
UKOG Yesterday's engulfing bearish candle and price close below the T line suggested sentiment had changed and to take profits if one had not already done so if price opened lower. Price gaped down so hopefully profit was locked in. At close of business price was 1.2250 down from yesterday's close at 1.4.Recently 1.225 has acted as support and resistance and today's close has hit the 50ema on the 4 hour chart so price could bounce back north.
MTV No change still a depressed price.
OXS After recent rise to 4p + in the absence of 'very soon' news price is now closing below the 3 ema and T line in a bearish trend. Major support and resistance at 3p. This share is a pure gamble and one could lose the lot.
OXUS GOLD UPDATE. Weekly chart at present shows price retreating off the 50 ema @ 3.23.. Closing price today was 3.29. Major support at 3p. Has been in a downtrend since 20 nov with price closing below both 3 and 8 ema which under normal circumstances would not make it a buy. However, the ‘very soon’ news could break at anytime. Could lose all your investment or hit the jackpot.
Fitbug and MTV both not a buy price closed below both 3 and 8 ema
ukog SMALL bullish candle but closing price below yesterdays and below both 3 and 8 ema but bullish J hook could be forming . Next couple of days will be interesting
CNEL Still bullish despite profit taking today. Closing price is still above the 3 and 8 ema.
Just added HDD to watch list. Price spiked yesterday 48% I think. This AIM share is solvent with a nav and has got cash in the bank. The price roughly seems to rise from sept/oct each year and falls after Jan/feb so could be worth a 3 month punt. Profit taking today has brought price back so watching to see when to buy. Target price would seem to be in the 2.25 to 2.5 area . . Results due out this month. If price drops back to 1p could be worth a buy but watch 3 and 8 ema on lower time frames 1 hr 10 mins and 5 mins.DYOR
Hi Lefkosia - thanks for this thread. It's really interesting and if this method, to quote your mentor, takes the emotion out of trading it's just what I need!
Wondered what your thoughts on AIM share Starcom (STAR) are? It started and closed above the 8ema. Traded up to the 4.40 mark before closing just under 3.20. They've also had a good RNS today.
What do you reckon?
good evening Tommytink. Interesting share. Thanks for pointing it out. This is what this thread is all about. To get in at the bottom if possible. The share was 24p earlier this year and has been in free fall down to 2p. Current price 3.20 having been up to4p today. I always look at loss first then potential profit. There was a placing @ 4 p recently and price has retreated from 4p five times since August. Risk reward ratio is not to my liking but don't let me put you off. I will however keep an eye on it and may change my mind.i'VE LOOKED at monthly, weekly and daily charts.On the 4 hr chart price retreated off 50ema. If price drifted back under 3p nearer to 2p may be worth a punt.
fitbug new low for the year
MTV trading sideways is this the bottom?
CNEL is 4 ish the top?
oxs treading water
HDD some profit taking but not a lot
All based on daily charts
just another webinar link to a 1 hr talk by stephen bigalow on the T line for entry and exits with candlesticks, the graphical depiction of investor sentiment. Can be used on any share including AIM, forex, indice, on any time frame. It is not rocket science. I keep watching them to ensure I don't ever stray away onto something else or listen to all the rampers and derampers on the share boards who are imo the lowest of the low.