Technical Analysis is very useful tool to find your Upward Trend Shares, however though while the definition of TA mentions 'prediction', that's not what I use it mainly for you. It can be used by many as a prediction tool but for myself, I use TA to analyse the state of the system as it is and weigh up the pros and cons of what may happen (positive and negative) and then assess a plan of action based on that, rather than based on 'the sp will be x pence in 7 days time' - which is prediction, which isn't what I do. This is why lots of PIs get all upset, they use it for prediction and get dismayed when prediction doesn't come true. TA is to be used to assess the current status and then make an educated guess based on that.
A pure TA thread has been done before, but most have failed as it got over complicated and most glance at the charts and feel baffled with the names of the indicators, let alone what they mean. If a company has good TA and good Fundamentals, then bring here for the rest of us to see. Most PIs on LSE live for Fundamentals shares and they may not understand the TA and but if they can sink their teeth into the Fundamentals, then they will be able to ask questions here about the TA of their shares but its worth remembering by all means that if Fundamentals are rubbish but Technical Analysis are good, then we should point out and the say Fundamentals aren't great. Stuff with good TA still goes up.
DEFINITION of 'Technical Analysis'
A method of evaluating securities by analysing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.
Ichimoku Kinko Hyo is a technical trend trading charting system that has been used by Japanese commodity and stock market traders for decades and is gaining increasing popularity amongst western stock market traders, being commonly referred to as Ichimoku Cloud charts.
Ichimoku Kinko Hyo, which translates to "equilibrium at a glance chart", was developed to allow a trader to quickly and easily appraise the trend, momentum, and support and resistance levels of an asset, from a single chart.
The system does include signals but these should never be considered in isolation. It is a visual technical analysis system and the charts are designed to be considered in their entirety to gain a perspective on the overall direction of the share or index and distinguish higher probability opportunities from lower probability ones.
Coppock Curve - crossing over the +ve line is called CCX.
Volume Oscillator - crossing over the +ve line is called VOX.
Kumo Break Out - the share price breaking out of a blue cloud normally.
The Tenkan line crossing over the Kijun line over is called a TKX.
All the above are indicators that I use on a regular basis, there are many more but they all help me understand the trend stages and give me a chance to chose an entry point.
Here is a share called CCE it started a new cycle about the end of September, the TKX and the Kumo B/O came first to highlight that something was happening, then the CCX and VOX. I normally get ready to enter when three of these indicators has been ticked off.
So what I am looking for is the TKX, CCX, VOX and Kumo b/o to all fall in place. Here is good old GKP, all the boxes are ticked though the trend is struggling a little. Though I`d have still possibly bought.
Here is another share (KIBO) trying to start a new exciting upward cycle http://uk.advfn.com/p.php?pid=chartscreenshotshow&u=yH9iMIYK9i1DsPjXxELSYhKBs5dMxuYcV5UvqOn3dqQ%3D&symbol=L^UKOG
This one is a slow mover (PNX) but showing real strength, the trend is getting established
Here is the goal we all want. The Upward Trend lasting long term. PHD is my example http://uk.advfn.com/p.php?pid=chartscreenshotshow&u=01UqaJlLXs7PjiqAhaUNxyXDDWEafLoV%2FUCyDQT6AF0%3D&symbol=L^UKOG
So bring a few of your shares here and we can analysis them and discuss what stage they are at. Strong fundamental share would be best but not totally necessary. If no one post examples, then I`ll just rattle on like i it did on Chapter 4, on my own. Though interaction would be great...
Hope ur well mate....been busy elsewhere so sorry for not posting more on ch4.
Excellent page here....will definitely make contribution.
Any thoughts on sph please?
Hi NFl - got the email re:SPH
Any thoughts on INTQ - good fundamentals and seems to be in uptrend starting?
Shan............I know you know your fundamental shares and often read your General Chat page, so I know this will be a strong share with good F`s. Your correct about here about an new upward trend, it started around Mid September and has taken a solid footings right up to 19th November. Now she is on her way well above the cloud, I see resistance at 332p. I`d also expect a natural drop back from the recent push as PI`s take quick profits.
Also for the Long Term View as very nice baby Golden Cross
Hi Johns88....I am sure your already painful aware PREM has fallen recently and in the last few weeks has been ranging up and down, on the bright side the share price seems to have found some support and is very oversold. I also noticed on the ADVFN chart that there is a Weak TKX, however they use the Mid Share Price and when I looked on Ichimoku Trader chart is showed a strong bearish TKX. I`ll add PREM to my watch list and will add future posts once the boxes start to get ticked but for the moment its a wait and see.
Cheers NFL much appreciated :-)
Very early days, but MAGP is on my watch list, mid January would be a good guess for some movement. http://uk.advfn.com/p.php?pid=chartscreenshotshow&u=svI6j5Biw4E5pcMc9rTzyzcNEl/eaoyBGazqD8+W6wU=&symbol=L^PREM
Everyone loves a Gold Miner play? Here`s one that is on my watch list, with crude falling. Is Gold going to be 2015`s darling? If so OMI is showing the signs that something is slowly building
Looks like KIBO trend mentioned on page 1 is going from strength to strength. A new 9 day high.
On to the watch list comes Media share MIRA, it has had Tenkan crossover (TKX) around November 17th (Tick 1). We know have 3 more boxes that need to be ticked off before we`re sure a trend is forming. You can see the share price is already nearly at the top of Kumo Blue Cloud that would be Tick 2 when it bursts through it. Also to confirm that is something new changing is the upward charge of Coppock Curve line and Volume Oscillator Line, they would be Tick 3 & 4.
Another good blog write up by Moosh.
MIRA Moved today to create a new 9 day high,
NFL - it's great to see your charts backing up a couple of my shares. Could you possibly have a look at AMA - an old friend of mine and a promising junior Gold player
Ea51on, I will have a look for you tonight.
Kibo smashed it!!!