FTSE 100 January

[TheBramble]

I've always been in absolute awe of those who can 'see' the basic TA constructs on a chart. I'm a very visual person so expected to be able to easily interpret such things, but it completely passes me by.

The H&S you refer to I presume is the most recent data. Why couldn't it also be/have been a double-top?

There was also a post yesterday with Elliot Waves marked on it showing the 5-wave. With my complete lack of expertise I could have chosen at least half a dozen (I'm not kidding) other places where a 5-Elliot wave could have been plotted.

TA may be an art and a science. The indicators obviously tend to the latter, but clearly, these formations are very much in the former camp.

Anyone else (who is now proficient in reading charts) start off similarly hampered? If so, how did you train yourself to recognise the 'standards' of TA from these amorphous collections of points?

 

[Hooya]

by no means is it an ideal exmaple...just more indication of the strength of support

 

[Hooya]

Futs seem to have support at 410......expiry level. is that just a coincidence?

 

[bonsai]

bramble

I am very largely with you on that

Head & shoulders, triangles, double tops, adam and eve bottoms,
wedges,flags,pennants are examples of artistic licence ?

it's all ink blots ?

However, I wouldnt want to be on the wrong side of them when they occur !

Of course, when they fail to follow through that can be a very strong signal too !

How do you learn ? Study !

When they succeed print the chart and when they fail, print the chart ? (With Volume)

and then from experience try and distinguish the differences ?

but the important bit is - how do you trade them ?

 

[Hooya]

using my not so good example I guess a longer term trader would go short if we closed below the neckline etc with a stop just above. But think all the patterns you ahve to use as "bonus"
material

 

[mully]

I'm easily confused, so I try and keep it very, very simple. Therefore, for me the current focus is on watching how the market treats the current support levels at 4330 (ftse100) and 6028 (ftse250).

 

[Hooya]

grrrrrrrrrrrrr that 410 on futs again...come on FTSE I can feel your leg wobbling

 

[mully]

i thought head & shoulders was a shampoo used to get rid of flaky skin or was it flaky analysis?

 

[Hooya]

depneds what you believe in LOL

 

[mully]

So far the 4330 level has been tested three times and held. Constructive? Possibly. A break above todays trading range would be encouraging.

 

[bonsai]

mully
you watch support, I'll watch the £/$

lol

 

[Hooya]

you got to love a gap closure

 

[bonsai]

It's been a real money spinner for some considerable time.

one of my favourites

 

[hungrybear]

I've held through this gap - just had a feeling it could have some decent upside today - backed by analysis if course

 

[bonsai]

remember also that when a correction is over, we go to a new high - by definition -

may soon be time for a few futures ?
if the next pull back gives us a higher low (if it pulls back)


on the other hand ...........

 

[hungrybear]

Good points Bonsai. I've taken most of my long off the table now - just left a small bet running in case it just keeps going!

 

[Hooya]

strong bounce off support...us futs up, 1.83$ holding, rate day in the US...it's all to play for

 

[bonsai]

lol

what is more important is that the macd caught the move again

 

[Hooya]

you mean something like this....but my macd is a bit slower than yours

 

[bonsai]

quite similar.
I dont use a signal line

a/d went from -40 to + 50

lol