Technical Analysis and Charting

Top 7. Feb 19, 1999 10:30 AM

» KirkL - 50 Day MA

Thanks Dan

What about This chart of the NASDAQ?

Isn't it significant that we have crossed the 50 day Moving Average? Time for an inflection point upward again? Wishfull thinking perhaps?

What about the A/D line? Could be an inflection point that would be significant also.
thanks

-- posted by KirkL

Top 8. Feb 19, 1999 6:13 PM

» TONYBRIG - Chart

I sort of initiated or prodded this discussion
site so I guess I gotta post something.
I've been reading up on charts in William Oneil's
book and gtrying to digest it.
Now you guys hit me with more technical stuff and
Jargon.
How the hell does it work this looking ahead stuff
and do you think it is really RELIABLE WITH THE
NASDAQ.
Maybe if enough of you chartists agree with it
then Ill go the other way!
Ha.
Best of Luck!
Tony

-- posted by TONYBRIG

Top 9. Feb 19, 1999 6:33 PM

» JenL_3 - "Head , Shoulders and Neckline" on the Naz

Dan - I appreciate the clear explanation of your take on the Nasdaq. I used This Chart to illustrate the activity of the Naz since the beginning of the year.

I do have a few questions:

- Since at today's close the Nasdaq gained 23.05 (+1.02%), but still closed at 2283.6, below the 2300 support level, what is your prediction for the coming week?

- What are the implications of the "Head and Shoulders" pattern, except to show upper resistance and lower support levels?

- You said: classical technical analysis would now call for at LEAST a 200 point decline from the 2300 area since that is the distance from the "head" (2500+) to the support area at around 2300 (known in charting parlance, as the "neckline". Please explain further. Do you mean that we should expect the Nasdaq to drop to 2100 or lower now that it has pierced the 2300 "neckline" or support level?

Thanks Dan.....Jen

-- posted by JenL_3

Top 10. Feb 19, 1999 8:59 PM

» DanG_6 - Lookahead charts, etc.

Tony, I tried the Lookahead charts once awhile back and they didn't work. So from my VERY limited experience they are 100% inaccurate! Use them at your own risk.
- Dan

-- posted by DanG_6

Top 11. Feb 19, 1999 9:04 PM

» DanG_6 - Nasdaq Revisited

Jen, first of all, I would not "predict" anything. A pure chartist (and I don't claim to be "pure") will follow the path of least resistance, which right now points down in the Nasdaq. Should it, on a rally back to the "neckline" at 2300, close substantially above that, then the downward momentum would be broken and we'd have to say the H&S "failed".
The classical view on H&S measurement (which I'm not sure I hold myself) is that the decline following a close substantially below the neckline should carry at least the same distance down as the distance from the neckline (2300 in this case) to the top of the head (2500+). That would be 200 points down from 2300, or 2100 in this case as a MINIMUM.
As a final note, Kirk mentioned the 50 day moving average that was penetrated. Coincidentally, it was penetrated simultaneously with the penetration of the 2300 support area.
So that's about it. Have got tax clients beating on me to "get 'em done", so I'll say night all.
- Dan

-- posted by DanG_6

Top 12. Feb 19, 1999 10:27 PM

» Mark_J - lookaway charts

Yeah, they did me no good.

-- posted by Mark_J

Top 13. Feb 20, 1999 4:52 AM

» TONYBRIG - Momentum

Does anyone have a technical deifinition for
momentum as it allplies to charts.
I believe that it may also have to do with
volume and not just direction of the stock.
I personally have very little exposure to
charts.
Also on the lookahead charts it shows for the
Nasdaq a low of 2200 for 2/26. Also a big spread
for that and other days.
Does it give a open and close?
Good Luck!
Tony

-- posted by TONYBRIG