RE: My take on TA and ADV15 Jan 2022 08:42
Hi Si,
Unfortunately I have never been able to forecast (with any accuracy consistently enough) where a share is likely to go and when, when it hits new highs and I have no reference points.
My "skillset" (if you can call it that), works around what is most likely to happen when in a range.
What will happen (assuming all goes well), that new highs will occur and using the RSI indicator I might be able to see when the SP will look to retrace or come off the top. This will give me the opportunity to trade it by selling and then seeing a level to buy back in.
Whether or not I do this will be determined by the spread on the buy/sell price and the historical speed of the SP rise.
If the SP goes up strongly it may only retrace just enough to make space to fuel another good rise, making trading too risky.
The recent SP action has (as a good example) been pretty much ideal for this type of thing and although I have not gone mental on it, there have been 2 opportunities I took to sell some and then buy back in lower. What I did do more frequently was on dips, add to my core holding.
So although I was frustrated by the frequent delays last year (I don't know if that came across....) I managed to at least profit a bit from them.
For those that think this is all rubbish, if you have bothered and had the patience to read my posts, then you would note that I have for some time, wanted to see a break above 4.4p. Using the HL chart,guess where it closed last night.... 4.41p.... Coincidence?
Anyway, the RSI is in mid range at 59.8 allowing plenty of room to increase (80 being my level that warns me of likely falls), and coupled with the now broken, very stubborn resistance level, we should, more likely than not, see rises next week.
( Just my opinion DYOR etc etc)
Cheers