FTSE 100 January

[Hooya]

can you show me what it looks like without a signal line would be interesting to see...I assume you are talking about the macd??

 

[bonsai]

?

nothing particularly clever about it

overbought/sold is around 20
move probably triggered by a 1/2, 1/2 ?

 

[Hooya]

thanks , isnt it quite hard to interpret when the macd has turned with out a signal line??? Do you just your use experience or do have some rules assigned to it

 

[Hooya]

off to the airport be back after 1 ish

 

[bonsai]

I find signal lines to slow for intra day

1- I have an audible alarm
2- If you saw my comments last night, you may know I was
already expecting a bounce because of the channel line
3- The first pull back was a higher low when we moved above 34
4- A/D was rising in support

and yes , experience of using the indicator for several years is important.

 

[mully]

And to add my twp pennies, support at 4330 had held on 14/01/04 and 27/01/04. The open this morning held 4330, followed by two more tests, each slighty higher than the previous test. To humble me a low risk trade to at least close the gap.

Not as sophisticated as trying to fit triangles, EW etc.

But then horses for courses as they say.

 

[bonsai]

that's right mully

but I didn't want to write a book about it.
there are clues in lots of places.

mind you, I couldn't tell how strong it would be either.
just another low risk entry.
this time a goat as I had 427 at the open

 

[mully]

Don't want to get too excited, but Reuters is at its 2003 peak again. Probably get barjon excited.

 

[mully]

I wont clog up the board, but you can add BAY to RTR as another potential breakout candidate. Would appear to support Bonsai's comments that once correction is over onto news highs.

If you want I can post the BAY charts.

Hope you are all having as much fun as I am?

 

[Hooya]

thanks Bonsai Re: the macd

 

[Hooya]

Here's another chart pattern then but all a chart pattern is a
collection of support and resistance levels nothing more nothing less imo...just like a trendline.

 

[bonsai]

hooya
except for one thing ?

to enter now, is high risk .
There is only one place to put a stop of any market significance
and that is over 30pts below.

 

[Hooya]

but if it broke to the upside assuming other indictors are still pointing +ve
a stop at or just below the support line(7pts) would be right for that trade.???

 

[bonsai]

lol
but if it breaks to the upside, you dont need a stop !

it's the problem of getting in late

 

[Hooya]

late, early, or on time I always need a stop

edit:
but dont for get it could always be used as a stop
for people that are long already too.

 

[bonsai]

ok but it was you that talked about a break to the upside.
didn't see the relevance of it.

we could drop 10 pts find support and indicators go bullish again

you could have several losing trades all the way down on that basis to say 4440 and the market could still be in a rising trend.

the market doesnt know where you put your stop - or other traders for that matter, but sure as hell, the whole world can see where the bottom is ?

or are we at cross purposes ?

 

[Hooya]

no I was just trying to highlight that intraday patterns only represent support resistance levels thats all

 

[Hooya]

...Tony Blair has had two lucky escapes in the space of two days. We could have been looking at Gordon Brown Prime minister next week LOL

 

[bonsai]

you need luck as P.M ?

Maggie had it and Churchill also

But Harold Wilson had Tony Benn

lol

 

[Hooya]

oh dear they are turning the heat on to the BBC....