Fib Charts.

[peedee]

Excuse my ignorance but how well do they work for swing trading?

 

[ChartMan]

If you use them as a confirmation tool, they can be very useful. The trick is in picking the highs and lows from which to take a reference. I know of others that use them as a primary indicator. You need to look back over time and see how they fit a particular stock, so that you get a feel for how they can/can't provide assistance in making trading decisions.

 

[peedee]

CM, can you apply fibs to indices ( iv'e never used them myself ), it's just that indices ( Nas100 ) would probably be my preferred vehicle? Personally i would have thought that you could apply any form of TA to any style of trading although some kinds of TA may be more efficient depending upon the time scales invovled. PeeDee.

 

[ChartMan]

As a rule of thumb, you can apply any TA to any instrument. whether it works or not is a matter of lots of homework. I do know that fibs work well on the NAS.

 

[peedee]

CM, what is it about QQQ? it seems as if it's quite a popular investment?

 

[FTSE Beater]

Hi Peedee

QQQ is the tracking stock for the Nas index
HTH

 

[osho67]

Dear FTSE Beater

Sorry about my ignorance? What is a tracking stock, Can one buy it as a stock and not as a future? Does it have options series as well? Thanks

 

[FTSE Beater]

Hi Osho

eek
I was afraid someone would ask that

The only thing I really know about it is that it follows the Nasdaq very closely, and you trade it in the normal share dealing way. The main advantage is that you can trade the equivalent of 1/8th per contract size. 800 shares in QQQ would return roughly the same as 1 futures contract, so you could buy 100 shares and only have the equivalent of 1/8th of a futures position - If that makes sense.

I'm not sure if there is an option attached to it.

I pretty sure that's how it works, but it would be great if someone could confirm it

 

[neil]

Here is a link to some threads on QQQ's:


http://www.elitetrader.com/vb/searc...by=lastpost&sortorder=descending&pagenumber=3

http://www.bettertrades.com/BTC/Tutorials/20030724_Darlene.asp
http://www.democraticunderground.com/forum_archive_html/DCForumID27/1244.html

http://www.nasdaq.com/indexshares/nasdaq100_intro.stm


http://quotes.nasdaq.com/asp/investmentproducts.asp


Hope this helps

 

[osho67]

Thanks Neil, you have given great links

 

[Naz]

Here is a fib chart that might be of interest for anyone looking at the Q's

 

[Naz]

Then of course we moved on to.........

 

[Naz]

If Intel called this latest move down by hitting this fib level then..............

 

[Naz]

.........Is it going to tell us something now?

 

[Bill G]

Chartman & Naz
I take your point of finding a optimum high & low,
to the extent of going back a couple of years, to compare with
a more recent fib hi & low.

 

[Naz]

Here are the QQQ's today.Just bounced off the 50%fib retracement.

 

[chump]

Interestingly it did push through the 50% and as we 'speak' is banging on 61.8% and that is where buying came in on the 23rd Feb. forming resistance today.