Vodafone - Can you help a TA novice?




I am a keen newcomer to the world of Technical Analysis. It's obvious from reading the messages on here that the regulars are a very experienced and clever bunch so I'm hoping that I'm not going to look too foolish with my questions!

I have been taking a look at the Vodafone chart. I'm thinking that this looks like a good short mainly on the basis that Stochastics signal the shares are overbought.

I read that Stochastics are a good indicator as long as they point to a trade in the direction of the current trend - fine as the trend is downward. Also, I believe you should pick indicators that have worked for a particular stock in the past - also fine as the overbought Stochastics indicator has successfully predicted a fall in price for Vodafone on the last 6 occasions as far as I can see.

Any views on my ideas? I'm concerned that my reliance on the singal indicator maybe a little simplistic. Maybe somebody could suggest one or more other indicators which would work well with Stochastics.

I am using the free, interactive charts on www.downloadquotes.com

Many thanks in advance for any advice you can give.

Kind regards

I would recommend that you read the book by Steven Achelis - Technical Analysis from A-Z. You can find it online at www.equis.com and there is a link from this web site under "technical analysis".

This book will give you a summary of almost every indicator that is available in technical analysis software.
Gary..........Welcome to T2W. No your not going to look foolish by asking questions on this BB. As for indicators other than Stochastics, I use Bollinger Bands on the chart, and also Williams %R, Chande's Momentum Oscillator and the RSI as my permanent indicators, supplemented by others as I feel necessary to make decisions.

As for Vodafone, it appears to be in another of its downward dips, and does not appear to have much to offer for short term traders.

I feel sure other members will respond as necessary to your queries so keep them coming.

Best wishes


The indicators that I use are Stochastic, RSI Wilder and
TCI when selecting candidates for the purposes of shorting. I believe that Vod was ripe of shorting on 19th April but I am not so sure now. Furthermore the market is in a bullish mode and has been for the last few days. DYOR