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Service
Charts provided as
needed and ON DEMAND for investors, traders and analysts who need a
reliable, grounded source for technical interpretation of stocks and
markets relevant to their areas of interest. Here are actual
examples of the service you will receive.
Easy
as 1-2-3
1)
Determine your objectives
2)
Detail your instructions in PayPal's handy notes box
3)
Order the chart(s) that best fulfill your objectives
Overview
At the suggestion of
readers of the Biiwii.com Technical Analysis
blog, we are pleased to
present a new service for our visitors. Technical Analysis ON
DEMAND is an efficient way for you to receive only the annotated
charts you want, when you want them. In
our view technical analysis is more art than science and should be used as
a back up to fundamental analysis of macroeconomics, individual
markets and/or stocks. Of particular importance to us is
whether a particular stock or market is trending and if so, how
strongly. Additionally, we are always on the look out for
divergence that can give hints of oncoming trend changes.
Another aspect of our TA style is that we look for confluence in our
indicators; we are always happy to see several different indicators
pointing to a common potential conclusion. It
is important to consider different time frames when charting.
This gives the analyst a wider canvas on which to paint
a picture of the prospects for a given stock or market. For
our own purposes we generally use daily (near term view), weekly
(medium term) and monthly (big picture) charts but 60, 30 and on
down to 1 minute charts are available as well. As a stockcharts.com
subscriber, we have full access to what many believe to be the
premier charting service in the world. Please keep in mind
that requested symbols must be recognized by stockcharts.com.
You can use this box to test if you are in doubt:
A less definable aspect of our style
involves experience. After five years of intensive charting,
we have a feel for certain shapes and formations and often
get an intuition such as "hmmm, seen this
before". We realize that black magic is not everyone's
cup of tea, so this "tool" is only used as a back up to
everything else. But the truth is, there are certain patterns
and shapes that, when identified, give us a leg up. The viewer should know we are not unbiased when it comes to
charting. Readers of the TA
blog know that in practice we are bottom feeders and risk
managers. Hence our strength is not in momentum plays or in
trying to define how high something that is already strenuously over
bought will go. We want to find the NEXT break out play BEFORE the other
guy and we want to sell to take profits (or limit loss) at
appropriate times. TA is invaluable in this regard. Finally,
if you have followed the blog and website for a while you know we
are very sensitive to ratios between markets and indicators.
An example is the Dow-Gold ratio which would help define whether a
nominal rise in stocks is also of the 'real' variety and not simply
the result of currency devaluation. Gold-Silver, Gold-Oil and
the various yield curve ratios are other examples. There is literally a world of
possibilities out there in inter-market analysis. Examples
of Charts You May Order
Daily, weekly and/or monthly annotated stock charts
Nominal charts of individual markets
Ratio charts in support of your
macro-fundamental analysis
Bond market comparisons, short and/or
long term trends
Currency pairs or nominal
Commodity comparisons or nominal
analysis
Global stock market comparisons
(relative market trends)
Point & Figure charts are available,
but the analysis will be self-generated by the P&F chart
Etcetera!
Note that charts will include our 'editorial' comments/observations
as applicable unless otherwise specified. Also, please specify
any details upon which you would like us to focus (ex:
momentum divergence vs. trend, patterns such as wedges & triangles
and/or support & resistance). You may also wish to note
something to the effect of "Gary, I am
looking for an entry level on stock XYZ. What do you see on
the daily and also could you back me up with a weekly view for a
bigger picture? And while you're at it, I need a weekly on the
ABC sector index that XYZ is a component of." Note
that we are not
proficient nor particularly interested in candle stick (exceptions
being gaps and the odd hammer or engulfing) or Elliot Wave
analysis. While we know how to spot significant candles and
can count 1-2-3-4-5 and recite our A-B-C's, our home grown 'keep it
simple' approach to trends, support, resistance, momentum and
divergence works best for our needs. More tips on successfully
using the service are here. Who
is the Service Best Suited For?
Long term investors
Swing traders
Institutional and brokerage macro analysts/traders
Who
is the Service Not Well Suited For?
Day traders
Pure momentum traders
Real
World Case Studies: FTEK:
Ascending Triangle target hit - Short via Put Options While
we are not day traders and do not promote the use of this service
for day trading, a recent real world example of how charting can
guide a trader to short term gains occurred on the blog June
20th & 21st
2007 as our former undiscovered gem (originally purchased at
around $5 in 2004 upon ID of a nice rounded bottoming pattern), Fuel
Tech (FTEK) broke out of a classic ascending triangle, hit our
target and provided us with an 89% gain in 15 minutes of actual
holding (puts) during normal market hours. Was there luck
involved? Oh yes. Did the charts play a significant
role? Oh yes.
ZOLL: Bottoms
at Support w/ Bullish Divergence - Long in a Managed Account Here
is the chart with which we highlighted Zoll
Medical (ZOLL) in June '07 as it was bottoming amid bullish
divergence at a strong support zone. Three weeks later we find
ZOLL turning up and heading toward our noted
resistance areas. Charts alone may not get you where you
are going, but they sure do provide some nice sign posts along the
way. Frankly, we would not be without them. BRL:
Buy Inverted H&S at Neck Line, Sell Spike & Buy Again at
Support Follow
the links in this post
from the TA blog to see how a stock, in this case Barr Labs (BRL)
can be
used for efficient trading by buying at support, especially with
bullish divergence in place. The key is to be patient and let
the chart do the work. MGN:
Identify weekly falling wedge breakout and daily attempted breakout
of lateral resistance and buy at 3.86 for a gain of 15% for day
traders and 26% (thus far) for investors/swing traders. Buy
MGN based on weekly and daily views that got us 'excited'.
It turned out that the charts merely reflected (ahead of the news)
the footprints of silver producer SLW buying a stake in MGN. MGN
nears our target and finally hits
target, at which point traders have a great short term trade and
investors just may have picked off a nice silver/copper property on
the cheap.
© 2004-2008 Biiwii.com
Disclaimer:
Biiwii.com does not recommend that any trading or investment
positions be taken based on views expressed on this site. If you
speculate or invest it is suggested that you consult a financial
advisor qualified in your area of interest. For more detailed
information and full terms of service, see "About &
Terms" here. |