Without doubt, my road to learning and using technical analysis would be short lived without software to support my analysis. Fortunately, an associate gave me a video on Steve Achelis pitching his software Metastock. I bought the software from Equis and over the years have bought all the upgrades as well as several add-ons. I would like to thank Steve for firstly creating such great software and for Reuters to keep the ball rolling after they bought out the company from Steve. I know others who started learning about technical analysis or options and who lost their way because they used software that was not friendly to changes and produced poor signals. Combining technical analysis with a software capable of accepting your input is a key to being successful.
Where is the market going? Below is a daily chart of SPY with an expert trading system that I have developed using Metastock. It is the first chart I like to open up. All I can tell from the chart is that there are Up arrows, signaling the market is still UP. It can change any day next week or can stay in this trend longer. No one really knows how long; but it is reasonable to expect a correction and pullback down the road.. With technical analysis I accept the current state and stay in a long mindset till things change and I get an exit or down signal end-of-day. This type of information is very useful for the rest of the trading I will do with my 401K systems and dynamic hedge. The first step is always to know which way the tide is flowing. The SPY trading system has been signaling Up since September 2nd, 2010, end-of-day.
Hi Stuart, Thanks for your comment. Those are 9, 20, 50 and 200 day exp mov avgs, OBV on the bottom and proprietary ICE trading system on the chart. the system is quite good but is a little more biased towards poking its head and saying "buy" more often than "sell". I suppose that is Ok given the markets tend to go up over time more often than down. Actually I like the system; but don't want anyone to think it is pristine and perfect.
ReplyDeleteWhat are the red, blue, black and light blue curves?
ReplyDeleteIs there a SPY chart for India?