Just a quick reminder that the Investor Think Tank supports Android, Windows Mobile and Iphone Technology... and it looks purdy as well!
Great for pinch zooming the charts for a better look while on the run.
You can access it via your Mobile Phones Browser.
Its a new year and I am looking to create something a little more up to date and current... Every week I will do an analysis on the market in a Risk On / Risk Off manner using some techniques I have learn't along the way... This does not constitute financial advice. Please contact your broker or financial advisor before engaging in a trade.
Sunday, February 26, 2012
26.02.2012 - Sydney Open (SPX500)
*Right Click Open in New Tab for A4 Full Resolution*
These Images can be saved onto your hard drive and enlarged with a zoom tool to see charts clearly
26.02.2012 - Sydney Open (EURUSD)
*Right Click Open in New Tab for A4 Full Resolution*
These Images can be saved onto your hard drive and enlarged with a zoom tool to see charts clearly
Sunday, February 19, 2012
No SPX 500 Analysis Tonight
Due to unforeseen time constraints I will not be posting a SPX500 analysis tonight along with the EURUSD that just went live...
I will however commit to doing one and possibly having a similar look at commodities in the week, so please do come back or become a follower and get the updates as they happen.
I will however commit to doing one and possibly having a similar look at commodities in the week, so please do come back or become a follower and get the updates as they happen.
20.02.2012 - Sydney Open (EURUSD)
*Right Click Open in New Tab for A4 Full Resolution*
These Images can be saved onto your hard drive and enlarged with a zoom tool to see charts clearly
Sunday, February 12, 2012
Fibonacci Waves as Lines in the Sand
*click on chart for full resolution*
Above we show Fibonacci drawn from the Open Top of a Wave to the Close Bottom of a Wave...
It is worth of note that one can get very creative in the assimilation of waves and drawing them from different areas will yield varied results... however the results seem to be very similar in terms of their location...
Thus Line in the Sand (LiS) Zones are created...
Drawing the Fibonacci from the highs to the lows of the waves...
*click on chart for full resolution*
If drawn from the Highest High to the Lowest Low of a Wave we get a similar result, albeit not as accurate as the previous example... still nonetheless a bunch of LiS zones have been created and it is up to the analyst's discretion...
What about something in between...?
*click on chart for full resolution*
Next we get a little technical and introduce the Neely Method of drawing Fibonacci, which is to take the Highest High Midpoint of a Wave and the Lowest Low Midpoint of the Wave in a specific time frame and use that as the grounds for drawing your Fibonacci.
What we find gets created is a much more accurate representation of LiS than by just taking the Fibonacci from the Highest High and Lowest Low of a Wave...
The above chart uses the 3CC to make an assumption which gets a very accurate supply confirmation at 75%
The same can and will be done using the TRO_MID (TheRumpledOne) indicator, which draws the Midpoint for every candle on the chart (this can get a little cluttered but makes for an easy to find extreme dot on the wave you wish to study).
Marking up a Chart with LiS
*click on chart for full resolution*
Above we see a lot of lines drawn on a chart...
These lines are just guesses of certain price levels where demand will over power supply or vice versa...
These Lines in the Sand were drawn using 3CC (3 Custom Candle) turn around points near or at extreme levels...
But what about the extremes themselves...?
*click on chart for full resolution*
Here we see the effect of plotting lines on extremes...
Extreme's are great because often price will cross a extreme LiS but will not close beyond it... If this happens then we can almost say that price has been supported or resisted...
Also if price doesn't breach an extreme we could also say that because it isn't making a lower low or higher high that it will continue to move in the trend direction...
These methods are largely due to the work and guidance from a trader by the name of MightyOne who can be found at www.kreslik.com as well www.insanityindustries.net
Saturday, February 11, 2012
Getting to grips with the Charts
*click on chart for full resolution*
Above we see a relatively Naked Chart of the S&P 500 Index...
Naked for the reason that there are no indicators on the chart, except for the 3CC indicator which is a candle drawing indicator...
The purpose of this is so that the analyst can focus on that which is important...
"PRICE"
Think about it... Price is the determining factor for all markets...
In a Bull Market, price goes up... But it can only go up as long at there is a Demand for higher prices...
Once that Demand has been exhausted, then we experience a excess in supply, as there are now no more people willing to pay premium prices for a stock or commodity... So then the with the drop in demand, so to is there a drop in price and we will see a correction towards a price where demand is high enough to drive prices higher again...
The inverse is true also for Supply...
If a company has a higher supply of a certain product then they are willing to sell those goods at a lower price, until the price gets so low that the excess supply gets eaten up by the consumer and then we have a return to equilibrium.
This is called the law of Demand...
What about if we just wanted to see Price on a chart...?
*click on chart for full resolution*
So this question can be answered by creating a Point and Figure Chart...
Traditionally a very difficult chart to plot as it requires a lot of work... But fortunately there is a indicator at www.insanityindustries.net that does it for you!
The PnF chart is great because it cuts out most of the useless ranging that can go on in any market, but more so the PnF chart is great for the simple reason that it makes spotting potential Support and Resistance levels a breeze...
BUT... Surely TIME is also important...!?
BUT... Surely TIME is also important...!?
*click on chart for full resolution*
Yes we can't discount the importance of TIME as a means to establish Supply and Demand... After all, when the department stores raise the prices back to original price once the 25% sale has passed, what happens to the amount of stock sold... It lessens greatly... so by that rationale the same can be said for the market...
The Open Price is where a lot of deals are made and it is for this reason that it is a formidable support or resistance line...
TheRumpledOne from www.kreslik.com knows this and uses this logic to create a awesome little indicator called TRO_OPENS and if you just have a look at the chart... it really does work...
Think about it... If you take something like the average range of the last 10 daily / weekly / monthly candles, you could pretty much be certain of a similar reward IF you waited that long AND were on the right side of the market...
Friday, February 10, 2012
Fresh Start
So I took a little sabbatical from the blog, but I believe in the interest of growing something meaningful to myself in terms of a record of happenings for the year 2012 and beyond... I thought I would throw out the old model and build on a new model...
A model that will require a certain amount of homework on the readers part...
Less is more, and the old blog felt cluttered...
So here it is... The launch of a new Investor Think Tank online
I hope that it may give some insight and value to those who are reading it.
A model that will require a certain amount of homework on the readers part...
Less is more, and the old blog felt cluttered...
So here it is... The launch of a new Investor Think Tank online
I hope that it may give some insight and value to those who are reading it.
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