GREY:ENGFF - Post by User
Comment by
zetaon May 06, 2008 9:00am
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Post# 15041351
RE: TA AND CHART FOR TUESDAY
RE: TA AND CHART FOR TUESDAYHi K2 -- Very good points you make on all these indicators. I try to work with both the candles and some of the western indicators . I happen to trust the candle patterns, but they can also be very short term - I think we have a very strong double bottom in place now and the other indicators should catch up as the momentum builds - yes, if you want to be absolutely sure of a reversal -- wait for all those indicators to turn positive before taking a position - could it be a false turn around ? -- You bet it could - this is the stock market and anything is possible - I would be expecting a run over 2.50 now, with 2-3 days of upside before some sort of pullback sets in - might even just be a sideways consolidation - always depends on the amount of stock hitting the market. Strong confirmation of the new trend will be a breakout over the 20 EMA and the 20 EMA turning up - these are pretty good indicators -- the MACD is also looking to crossover today - if we have a white candle - the daily MACD is a good indicator for sure - if you just waited for a bullish MACD on the daily for every trade, you would avoid most of the false starts and whiplash action. The weekly MACD is very slow and most of the time when it finally confirms the reversal, the stock has topped out again and is on the way back down - so, I do not even look at the weekly -- but the daily is just fine -- in the case of ENG -- the MACD sure looks ready to cross today.
But, with all TA, it is really what you have confidence in -- I pretty well stick to the candles, 20 ema, stochastic and the DMI to confirm the trend . Good luck today !! Zeta