Friday, February 15, 2008

Technically Speaking

I have found some technical indicators for stocks that have been
helping me considerably lately:

- Stochastics
- Relative Strength Index (RSI)
- Bollinger Bands
- Exponential Moving Average (use the 50 day average)

These indicators can be found on Yahoo! Finance's interactive charts.

These are playing a part in my quest to make a shift from being 100% investor to becoming 75% investor and 25% trader. It is just a simple matter of making an educated assessment of whether or not a stock is overbought/oversold, and having an idea as to what price to set my limit order(s) and my trailing stop limit orders at. It is an improvement on my buy/sell points.

I am still learning about analyzing share volume and the overall market. It is a matter of making it a point to persist in learning and improving as I go. In fact, my investigation of the OBV and CVI is still in progress.

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