please share your thought process when you are looking at charts
- Thread starter mute9003
- Start date
#2 Whatever the fund is doing will show up on the chart.
If I know it so does everybody else. EMT. What price does will tell me how the rest of the market perceives the value of the holdings they are liquidating.
Well no. I'll be out when the last share is liquidated and you'll be out when the price runs against you...and that's probably the difference between losing and winning in this scenario
I guess that depends on what the price is doing when the last share is liquidated. My guess is it might increase as there isn't the supply. When there is nothing for sale buyers have to bid up the price to find sellers.
I can look at a chart and see what has happened.
All you know is that someone has to liquidate a large block of stock. If I own the stock I'm out when it starts to drop. Sure I can get caught with a gap down but unless you are the only one who has the information I'm not sure you can unload your position any faster than I can.
It also depends on who else is in the market for the stock. I've seen large blocks of stock traded without the price moving. I can't possibly know why other traders are making moves. All I can do is react to what they are doing.
Stocks increase in price because there are more people wanting to buy than there are willing to sell. If a stock is increasing in price the likelihood is it will continue to do so. What els do I have to know?
the chartist: Imma sell the gap down below resistance, old gap closed, stop above gap, yada, yada.
wise guy: short float 30% and someone bought a metric fuckton of calls today. (these are the additional puzzle pieces btw...)
everything is in the price...even the 29ct ramen noodles the chartist will eat for the rest of his life.
I hope you get my point. There will be a couple of big winners tomorrow, but I'm sure they didn't rely on charts alone.
Focus on one favorite pattern and train pattern identification on historical charts or live demo first. Hope this helps.
List of patterns and their probabilities can be found in Bulkowski book on chart patterns.
Burnout, man. That's why I try to keep it simple. AHahahahahah! hahahhh...hahaaa....ahhhh
I don't worry about the trades I'm not in. I didn't have CAR either.
Did your research put you in either of those trades?
All I'm saying is that it is quite feasible to trade only with the information on a chart. Possibly with all the extra info you have access to, you have a superior strategy that will put more money in your pocket. If I'm to believe you you are doing triple digits per year. Like I said I do 20% consistently.
I think this is an assumption that's not necessarily correct. Is selling gaps down and buying gaps up the standard method of the chartist?
I'm not a pure chartist so it might not matter, but I'm generally looking to buy gaps down, but it depends on other factors of course.
Interesting example for sure. However, to repeat something you said yourself earlier. Everything you showed here is openly available information. Of course, you took the trouble to put it together in a system and may have analyzed it smarter than other players.
I think the same holds true for chart reading. Just because everyone can chart price does not mean everyone can read it efficiently. And with all the various timeframes and charting types that can be utilized - there's a lot of possibillities.
If I watch a chess board - I have a hard time predicting the next move while a chess grandmaster can walk through multiple scenarios all the way to the end game.
Curious, though. Would you simply buy that gap down (or any other example where non-chart information gives you an edge) or would you use price confirmation from the chart in any way?
can i? i did not know that.....there are more than 100 posts that were personal rascist or outright insulting that qualified.
where do i find the administrator?