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ADJ - i been using techs for 7 years now and i'm still tweaking things as i go! each share has its own technical 'fingerprint' because each company has different numbers of shares and different audiences - then add to that the various sentiments (technical and fundamental) alongside newsflow and general world economic environment, then you have A LOT OF VARIABLES to deal with, so it's no wonder that people on bulletin boards are often indecisive or change their mind every other day. find one technical indicator which bounces sensibly from oversold points - easy to find. ideally you want it in a company with good fundamentals. for example, if the price usually bounces from an RSI oversold point then it means the audience for that company waits for the dirt cheap RSI entry before buying - obviously always checking fundamentals as you go. if price doesn't RSI bounce and keeps dropping them either the fundamentals aren't currently strong enough, or if the fundamentals are obviously undervalued then it means there is no audience who understand to buy when RSI (or whatever) is oversold and no audience who can see an obviously undervalued company. and by undervalued, i don't mean 'if you convince yourself hard enough then it could be undervalued' - i probably refer to continually profitable companies with undervalue PE ratios (less than 10). there are a lot of variables to consider - might be worth just practice trading through 2016 to find a method you're comfortable with?
don't forget...once RSI daily goes oversold then take a look at the fundamentals and recent newsflow. don't go asking around for anyone else's opinion on fundamentals. if a company is blatantly off radar and factually undervalued, there doesn't have to be any conspiracy as to why the price is undervalued - stuff becomes undervalued in a downtrend. why does stuff downtrend? because dumb herd mentality wet themselves when price drops. if the herd knew how to play the market they would've sold when it was overbought prior to the downtrend getting into full flow. duh. anyway, how does the downtrend stop? well, obviously it requires people to buy AND HOLD when stuff is oversold. but look, if everyone is too scared to buy when stuff is dropping then how will anything ever actually go up again?
Lefkosia - that technique looks a bit complicated to me. my head hurts. ADJ - you just have to figure out your preferred entry point. RSI oversold can either continue falling or be momentarily - it all depends on how the wider audience both understands the fundamentals of the company and also if there are lots who prefer to wait till RSI goes oversold. if you prefer to wait for the tide to turn, then RSI will not be oversold at that point and then you have the uncertainty, in a rising price, of whether there is new blood willing to pay a higher price than you once the price has started to move. the more people who start to understand oversold/overbought concept means that in time fewer will get sucked in buying when stuff is overbought. so people can get into the situation where they may not buy something when price is continuing to fall, but then once price does start to move, they then say that they want to pay what everyone else was paying before the price started to move. PEOPLE CAN'T HAVE IT BOTH WAYS. these people should just not bother really. consider this question before buying anything: how easy is it to make a profit on this trade? it's easy to make a profit if the fundamentals are reasonable and when stuff is oversold on which ever daily indicator you like. it's easy to make a profit if fundamentals are rubbish but the sentiment is positive and volume is strong with a good news-driven rise. at the very least, find one share with good fundamentals then just work each oversold/overbought swing. or find 5 'solid' shares which go up and down at different times then you can jump in and out in the shares easily enough - consider a 10% profit good in the current climate.
fantasy p/f update http://www.lse.co.uk/blogs/member/moosh-blog/6p49cu/
ADJ... bottom fishing can be dangerous - which is why i wait for ground zero to start when daily RSI goes oversold then assume that the price can then drop from between that price and zero. so with that in mind, i split my capital into 10 chunks and then divide the ground zero price into 10. so if RSI initially goes oversold at 5p, then if i like fundamentals, i'd get a chunk at 5p then consider another buy at 0.5p drops down - but never buying more than once a week AND the RSI has to be oversold on any drops down too. by having these criteria it means i don't overtrade and means i'm taking into account dimensions of both price AND time, not just price. time is money and given that techs are based on the time factor, it MUST be considered.
...i don't really know what i'm doing re:buying once the price starts running away (lol). hence why i don't buy a rising price. it depends if you like to buy on weakness or buy into strength. as long as people aren't selling into weakness...that's just deviant.
camkite! i personally won't buy into a rising price - but there are plenty who will! once the price does start to rise you can gauge how risky it is according to techs - if price is going whoosh when overbought, then it's high risk - people at least need to know how high the level of risk is and accept it before they buy when stuff is overbought. what is NOT appropriate or right is when investors buy high risk overbought stuff (knowingly or unknowingly) and then spend weeks on bulletin boards trashing companies and BoDs for not sustaining a high price if they ended up buying high and getting locked in. BoDs/companies have no control over price - and they have no responsibility on when investors press buy. so it's really pointless blaming companies. unfortunately because this type of rubbish is spewed out across bulletin boards, and cos' most investors read them, they believe this rubbish and what it does is create an environment where companies are considered the bad guys all the time. this kind of behaviour needs to change and it has to change in order for the economy and stock markets to turn around again on the long term. we have a choice - the more who begin to focus on the cycles properly and get in close to the start and out close to the end - should theoretically result in not just more people making profit, but then more people with capital available to plug in when stuff is oversold in companies they like. this is just common sense.
also, don't bother with predicting prices. load of rubbish. you can gauge where prices 'may' get to, but don't bother trusting anyone who throws out a price prediction on way up or down. simplify it: - when RSI daily goes oversold, see what price is - if you like price at this point then consider a buy. if you don't like it, don't. if you don't like it, the uncertainty you got is that there may be others waiting who do like that price and who will snap it up at the RSI oversold price. start to train yourself to be patient and wait. it's better for volume support to be inserted at the oversold position - they act like roots of a tree. throwing volume when price goes whoosh is like having a top heavy tree with no roots - what happens? the tree falls over.
camkite - if the daily RSI closes below 30. if a share is in weekly uptrend then the RSI will not go oversold. the RSI oversold position will happen a long time before stuff gets into a proper trend so you need to understand that and figure out whether you are happy to hold long enough (might take months!) for an uptrend to kick in properly. MAGP IAE closed RSI o/s last night http://uk.advfn.com/p.php?pid=chartscreenshot&u=06VrD%2Fl%2Bls7kC1a7GpoFVAkUQawcnYAu&kslash=s http://uk.advfn.com/p.php?pid=chartscreenshot&u=%2FtL0UKQ5rx5mrNH9WUqt%2FISqXaPH6M6x&kslash=s FLX dipped RSI o/s recently - unfortunately FLX was pumped above 10p few months ago causing lot of people to be trapped. they should've waited till it went oversold like it did, then they could've provided the volume support at the better time - when stuff is oversold. http://uk.advfn.com/p.php?pid=chartscreenshot&u=qQXqpsN0zS0G79qwIcuCnuPuxPZdSaFg&kslash=s
hello ADJshares. don't look too hard at the charts. assume your audience are sitting and waiting for a daily RSI oversold position. obviously once a share is in full swing then it will end once it gets toppy when weekly/monthly techs are hideously overbought and the price doesn't realistically justify the fundamentals. don't convince yourself otherwise. the 'real' price of a company is dictated by the price at which RSI goes oversold, in my opinion, since this is the price at which real investors will begin topping up at. only traders will buy a running away price.
hi L. NFL told me about you. ARS has t-line break. http://uk.advfn.com/p.php?pid=chartscreenshot&u=d%2BFl4ML94094P8PRgXVdb4%2BXV1oZLenT&kslash=s
the problem LSErs have is that the volume tends to be drummed up at the wrong times - when stuff is overbought. but by the time stuff goes oversold, everyone has no money left over to plug in at the bottom when it's oversold because they're locked in trying to catch a falling knife. THIS REALLY MUST STOP. and also those locked in at high sp and also locked in buying on the way down get disillusioned because the sp doesn't go up after they bought. well no, it doesn't always - if MMs have got background orders to kick out when the RSI is oversold then they will go there whether PIs try to stop it from falling or not. don't mess with the MMs. when they not ready to make a market, they'll have good reason not to. but when they ARE ready to make a market then you need to be ready to watch for the signs. if you've been caught out buying high and getting locked in, take the long weekend to find somewhere that gives you RSI indicator oversold/overbought positions, see when you bought and then figure out when you should have bought at the last cycle as per RSI position. ADVFN.com good charts. PIs here at LSE argue all the time about fundamentals - when PIs go on and on and on and on about fundamentals rehashing the same old blurb 10 times a day, it's a bit of a con really - just check the fundamentals (Fs) once RSI goes oversold (below 30) and if you like the Fs when this happens, then consider a buy. i'm not going to argue with anyone about the Fs when something is oversold because i understand how it works - if enough people think something is worth buying when it's oversold then they will buy. i'm not going encourage or deter these people. a trade is a trade and the easiest trade to make is the oversold-overbought swing on RSI. i'll hold your hand through some RSI swings. oh, and beware of derampers who trash shares when the RSI is oversold - they're not helpful to you. and they'll likely be the ones trying to convince you to buy stuff when it's overbought
CRX only needed the one RSI oversold position in May to kickstart its massive rise! when companies issues continual positive RNSs following a deeply oversold position, sometimes you never get a second chance!! http://uk.advfn.com/p.php?pid=chartscreenshot&u=Bz%2B84FktHSn%2FaeedCtKgtiEDtOwAcivn&kslash=s
VAL - was anyone lucky enough to catch the recent RSI oversold position here before the rise? i didn't lol http://uk.advfn.com/p.php?pid=chartscreenshot&u=qR29L1UCseIQUU2Rb3vkfNZdZjAqIWKG&kslash=s
interestingly CPX properly went RSI oversold only recently after the big rise. i have no interest in this, just saying http://uk.advfn.com/p.php?pid=chartscreenshot&u=SLSZHf5D%2F%2BA41NB1KSDpFAwq00mYuL6E&kslash=s
i'm not interested here but i know AFPO has been on radar. simply RSI not oversold yet. don't try to prop it up http://uk.advfn.com/p.php?pid=chartscreenshot&u=I1JQcmq5DN9ej%2B7Rp1vEs6tw0POZmAsM&kslash=s