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ABASRAI
Technical Charts - Experience
posted Feb 21 '12 by abasrai
My experience with technical charts on S2O has been to do the opposite. I bought shares when the technincal analysis suggested to buy and sold them when a sell signal was indicated. Every time I incurred a loss. I then did the opposite, i.e. bought shares when it said sell and sold it when it said buy. I ended with a profit. In a way I followed the sell high and buy low strategy.
Wanted to know if others have had the same experience?

CLETE
Re: TA Experience
posted Feb 21 '12 by clete
This would only normally a happen when you are buying on technical signals while the stock is in a bearish market trend (i.e. when it is trading below it's 40 week (200 day) moving average.
If you only buy when the stock is in a bull trend, the technical indicators will work very much more consistantly in the way they are intended.
If you let you recent experience teach you to do the opposite of what the technicals tell you to do, you'll eventually lose your assets, if you know what I mean.
There is a reason why Phil Town made millions and millions of dollars trading the way he does and it isn't because they typically work in reverse.
Clete

Joseph
Re: opposite behavior
posted Feb 21 '12 by joseph
I could also see this working if the market is swinging up and down a lot. Basically, it's up for a day or 3, then swings the other, and so on. This being the case, you wouldn't want to buy at the high or sell at a low. The behavior you described might work.

GOODSTEWARD
TA Experience
posted Feb 22 '12 by goodsteward
Clete: I read your comments with interest and I have a question. Is it your personal preference to consider the price versus 40 week (200 day) moving average to determine market trend? I believe S2O uses the 150 day moving average.

ABASRAI
TA Experience
posted Feb 22 '12 by abasrai
Clete: My experience has been in the bullish market and not bearish. Take the example of Bidu. Just a few days ago it was Bullish market and Buy. Today it has changed to Bearish market with Almost Sell. A friend of mine entered the trade last week based on this signal (despite my advise not to buy !!). Today he is very much regretting the decision.

ABASRAI
TA Experience
posted Feb 22 '12 by abasrai
Clete: My experience has been in the bullish market and not bearish. Take the example of Bidu. Just a few days ago it was Bullish market and Buy. Today it has changed to Bearish market with Almost Sell. A friend of mine entered the trade last week based on this signal (despite my advise not to buy !!). Today he is very much regretting the decision.

ABASRAI
TA Experience
posted Feb 22 '12 by abasrai
Clete: My experience has been in the bullish market and not bearish. Take the example of Bidu. Just a few days ago it was Bullish market and Buy. Today it has changed to Bearish market with Almost Sell. A friend of mine entered the trade last week based on this signal (despite my advise not to buy !!). Today he is very much regretting the decision.

ABASRAI
TA Experience
posted Feb 22 '12 by abasrai
Clete: My experience has been in the bullish market and not bearish. Take the example of Bidu. Just a few days ago it was Bullish market and Buy. Today it has changed to Bearish market with Almost Sell. A friend of mine entered the trade last week based on this signal (despite my advise not to buy !!). Today he is very much regretting the decision.

ABASRAI
TA Experience
posted Feb 22 '12 by abasrai
Clete: My experience has been in the bullish market and not bearish. Take the example of Bidu. Just a few days ago it was Bullish market and Buy. Today it has changed to Bearish market with Almost Sell. A friend of mine entered the trade last week based on this signal (despite my advise not to buy !!). Today he is very much regretting the decision.

ABASRAI
TA Experience
posted Feb 22 '12 by abasrai
Clete: My experience has been in the bullish market and not bearish. Take the example of Bidu. Just a few days ago it was Bullish market and Buy. Today it has changed to Bearish market with Almost Sell. A friend of mine entered the trade last week based on this signal (despite my advise not to buy !!). Today he is very much regretting the decision.

DARRELL
Re: TA Experience
posted Feb 22 '12 by darrell
I'm no expert by any means, so if my analysis is wrong, PLEASE correct me. I'm here to learn too. =)
Abasrai, I just checked the charts and I don't see where it said to "buy" last week. I see where it said to "buy" somewhere around Jan 25th, and to "sell" somewhere around Feb 20th. That should have given you a profit of approximately $10 per share.
Also, my personal preference is to have the 10/30 day MA be above the 150/200 day MA. Looks like BIDU's stock price has been trading below the 150/200 day MA for quite a while. I'm not sure if that makes a difference or not, but I like it to trade above that.

DARRELL
BIDU
posted Feb 22 '12 by darrell
One other thing, BIDU has been a tricky stock for me also. I traded it 4 times. I've profited twice and lost money twice (lost about $100 overall). So I have just decided to leave this stock alone!

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