Articles filed under 'Technical Analysis'
I’d like to invite you to look at a recent, not atypical, four day chart of a stock. In this particular case, it’s SiRF Technology Holdings (SIRF).
As you can see, the stock gapped down from the $25-$26 it had been trading at to the $19-$20 range. You see this kind of thing all the time when “bad” news comes out.
The question I’d like to raise today is: who set the price?
There are about as many variations on the moving average as there are investors using them. While it’s generally understood that no one configuration is going to be the holy grail of predicting stock prices, each investor has their own baselines or favorites that they come back to.
Below, I’ll talk a little bit about how I’ve been using MAs lately. Then I’ll look at some of the MA setups which seem popular online today and make some observations based on them.
We here at InvestorGeeks lean towards the side of “fundamental” “investing”, but as I’ve been reading up on technical analysis for my upcoming articles I’ve run into some interesting reading.
When we invest in a market, we want to know the players. We spend a lot of time trying to figure out what the institutional investors are doing because they control the largest chunk of fluid money in the market. Day traders work in the market as well. So even if we don’t want to join them, we should at least try to understand them. What can we learn from them?
StockTickr.com is quickly becoming a community for stock traders. They have a pretty good blog too, with occasional interviews with traders using their site. Here is their interview with Ugly from UglyChart.com.
Another good read is from Trader Mike, who posted an article yesterday on his tools of the trade.
Wednesday, Jun. 7, 2006
by Jason
Last week, we were watching Microsoft’s stock and hoping it could break through the resistance level at $24. If it did that, the stock was set for a nice break into the mid-to-high twenties. Instead, the stock dropped along with the general market and tech sectors. Closing price yesterday was around $22.50.
