Hello Guys
I am new in stocks world and started online stock trading just a week back in Pakistan. Before starting trading, I read few books on technical analysis. One of them is Stan Weinstein - Secrets For Profiting In Bull And Bear Markets. I loved this book the most because as I completed the book and saw the charts of stocks in real life, they were all going through the stages defined by Stan, it was surprising for me because I studied finance but what I found is against what fundamental theories say. I realized what works in stocks is not fundamental but technical.
However I need a few clarification in order to apply perfectly what I learned from his book. I request experts here to answer the following question so that I can make use of Stan's method in better way.
1. Are Relative Strength Line in Stan's book and Relative Strength Index the same? I use Reuters.com for charting purpose and I do not find Relative Strength Line there but RSI. Here is the direct link of chart for example.
http://www.reuters.com/finance/stocks/chart?symbol=GATX.KA
if RSL is not RSI, please tell what indicator at Reuters I can use in replacement of RSL.
If Reuters is not enough for RSL, I have another charting service below that I can use for Pakistani stocks.
http://analytics.kse.com.pk/GraphicalAnalysis/trendanalysis.php
You can see all available indicators by clicking on the first button in second line.
2. Stan in the book shows graphs for more than a month in almost all examples. But I see stocks going through all stages in at most a month. Each stage takes few days to complete and stock moves to another stage immediately. Is it normal that fast or there is something I am missing to understand charts. I am attaching a list of Pakistani Stock, you can search any of them by symbol on Reuters and see the pattern.
4. As I just told the stages go so fast, should I still use 30 week MA for Stan's technical analysis? Please note that I am swing trader. I try to buy stocks at the breakout on stage 2 and sell them after 5 to 10 days, at the beginning for stage 3. I find something wrong with 30 week MA for such a fast Pakistani stock market because in almost all stock I check stock prices are much above 30 week MA. Can I use 50-days MA as an alternative or what?
3. Should I buy stock that have less free float shares? They seem to be less liquid. But those small number of sellers have greater control over price when buyers are there.
Please answer the question above. I will be very thankful to you. Waiting for response...
I am new in stocks world and started online stock trading just a week back in Pakistan. Before starting trading, I read few books on technical analysis. One of them is Stan Weinstein - Secrets For Profiting In Bull And Bear Markets. I loved this book the most because as I completed the book and saw the charts of stocks in real life, they were all going through the stages defined by Stan, it was surprising for me because I studied finance but what I found is against what fundamental theories say. I realized what works in stocks is not fundamental but technical.
However I need a few clarification in order to apply perfectly what I learned from his book. I request experts here to answer the following question so that I can make use of Stan's method in better way.
1. Are Relative Strength Line in Stan's book and Relative Strength Index the same? I use Reuters.com for charting purpose and I do not find Relative Strength Line there but RSI. Here is the direct link of chart for example.
http://www.reuters.com/finance/stocks/chart?symbol=GATX.KA
if RSL is not RSI, please tell what indicator at Reuters I can use in replacement of RSL.
If Reuters is not enough for RSL, I have another charting service below that I can use for Pakistani stocks.
http://analytics.kse.com.pk/GraphicalAnalysis/trendanalysis.php
You can see all available indicators by clicking on the first button in second line.
2. Stan in the book shows graphs for more than a month in almost all examples. But I see stocks going through all stages in at most a month. Each stage takes few days to complete and stock moves to another stage immediately. Is it normal that fast or there is something I am missing to understand charts. I am attaching a list of Pakistani Stock, you can search any of them by symbol on Reuters and see the pattern.
4. As I just told the stages go so fast, should I still use 30 week MA for Stan's technical analysis? Please note that I am swing trader. I try to buy stocks at the breakout on stage 2 and sell them after 5 to 10 days, at the beginning for stage 3. I find something wrong with 30 week MA for such a fast Pakistani stock market because in almost all stock I check stock prices are much above 30 week MA. Can I use 50-days MA as an alternative or what?
3. Should I buy stock that have less free float shares? They seem to be less liquid. But those small number of sellers have greater control over price when buyers are there.
Please answer the question above. I will be very thankful to you. Waiting for response...
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