G
gpegler
Hello
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
Gary
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
Gary