Okay, I'm going long the stock indexes

[Monk]

Originally posted by wig@Oct 28 2004, 11:31 AM

What is in your tool box that you find useful? I assume you use technicals primarily??

Yup, technicals.

I try to keep it simple (KISS). When I look at a chart and see too many lines and diagrams... I know I have over-analyzed that stock.... this is just my trading style... I know others have their own preferences.

Mainly I use;

1) Trendlines (MAIN technique)... this includes;
- flat lines at prior resistance and support levels
- channels
- wedges (bearish and bullish)
- flags (bearish and bullish)
- various other formations

2) Volume... very important for seeing what is REALLY going on behind a stock's movement.

3) Divergences... positive and negative divergences with MACD/RSI and price movement.

4) Fibonacci retracements

5) Elliot Waves, sparingly... but sometimes

6) Moving averages... can usually tell when a stock is a slave to particular moving average based on past reactions..... use as applicable

7) Indicators like RSI and MACD moving into and out of oversold levels.


That's about it wig. Unfortunately, I don't get to spend as much time monitoring all this stuff as I'd wish...... got 'real' work to do.

Keep us all updated with your calls.... your record has been pretty stellar to date.