Stock Charts Say Watch Out

Day Trading Using Stock Charts - Video Tips

You can never have too much knowledge about stock charts and technical analysis if you are interested in learning about day or swing trading stocks. Oscar Carboni is an interesting guy who has 30 years' experience trading stocks, he doesn't always get it right, but as far as I have seen he does get it right more often than not. But at least he is always willing to step up to the cameras and tell people where he thinks the markets are headed, before the event, then you can judge for yourselves if you think he is worth following.

Today (Thursday 31 May) he says the charts are bearish and the market should head down (futures at the moment are indicating a move up at the opening) - mainly because of the bear flags all over the charts. His short-term target is is 1274 on the SnP about 40 points lower from where we are now, which is where the 200 day moving average is. Long-term (in a few months time) he says the markets will start heading back up as crude oil prices are falling which is a great stimulus for the worldwide economy. But he is a day trader (he closes all his trades before the markets close) so today he is shorting the market.

Here is his video for today - you can fast-forward the first 9 minutes !



For more details on using stock charts to make stock trading decisions see - swing trading tips

Basic Tips on Trading Stock Charts

The Basics of Stock Charts for Dummies

Take a look at this excellent video on stock charts by the Old School Chartist. It is aimed at the very beginners amongst us, so if this is not you  then you may wish to skip it. In the video he gives a very good and easily understood explanation of the wedge pattern and the difference between logarithmic charts and arithmetic charts and why it is very important to use logarithmic charts when looking at stocks. Any charting package (whether free or paid for) will allow you to switch between the two diferent charting methods just by clicking on a button.
In the video he mentions a book about charting which he recommends by Robert Edwards and John Magee Technical Analysis of Stock Trends
it costs around $60 but is well worth it, alternatively there is a cheaper charting book on the right-hand side of this page.



If you are more of a long-term investor rather than a short-term  trader then you might want to take a look at what stocks Warren Buffett has been buying - Warren Buffett's Latest Stock Buys

For more about charting see - How to Trade Stocks Online

Technical Analysis of Stock Trends

Stock Market for Beginners - Charts

Stock Market for Dummies - Stock Chart Analysis Video

Check out this video on the SnP market charts from the Old School Chartist


Basically OSC has been saying for a while now that if the SnP breaks down below a certain line around 1245 then it will be heading down another 75 - 80 points. Well, that support of around 1245 was broker yesterday (Wednesday) and it loks like we are heading for another down day today (the FTSE is down around 100 points so far today and the DOW futures are also pointing down).

For beginners to stock trading and stock charts it is very useful to see how traders with more experience interpret stock charts. Stock charts are not infallible of course, and neither are the interpretations of them, but there is a widely held belief that the news comes out in the charts first. Primarily because people in the know - generally institutional traders - place their positions before everyone else gets to join in.

This institutional trading can be seen in the charts and when the rest of the traders join in this merely accentuates a trend that was already there.

For a slightly more detailed look at charts and why professional stock and forex traders use them, check out - stock charts for beginners

For a VERY detailed explanation of charting for traders of all levels then you can download this 272-page ebook from Amazon Getting Started in Candlestick Charting

Charting for Beginners? Support-Resistance

How to Trade Stocks using Charts - Support and Resistance

Actually, support and resistance levels are not just for beginners to stock trading. Many professional stock traders time their shares buying and selling on nothing more complicated than support and resistance levels.

Take a look at this excellent video by 'old school chartist' for a detailed explanation on what support and resistance levels and why they work.



Basically stock charts are not just random lines on a screen, they work as a trading strategy because they reflect the behavior of crowds. When traders expect something to happen, they make it happen by behaving in a certain way and so the charts become self-fulfilling prophecies.

For more information on support and resistance check out this earlier post - how to trade stocks - one easy strategy

How to Trade Inverted Hammer Candlestick

How to Trade Stocks for Dummies - Trading the Inverted Hammer and the Shooting Star Candlesticks

NB : For the basics on stock trading - click here for the no-nonsense info. --- how to trade stocks online

If you are just starting out trading stocks, this video gives a very good description of how to trade both the inverted hammer and the shooting star candlesticks



For more detailed information on the inverted hammer pattern see - inverted hammer candlestick for the shooting star pattern see - shooting star candlestick - for the basics of stock trading online for beginners see - how to trade stocks

Shares Magazine and Newspaper Tips

Online Investing - Newspaper Stocks and Shares Tips

SHARES MAGAZINE

Plays - Share Tips
Buy Brooks Macdonald at 307p
Buy Hargreaves Services at 178.5p.

Update

Hold Central African Gold.

Ten sizzlers for the summer

ASOS, Craneware, China Shoto, Healthcare Locums, Eros International, Mears, Hilton Food, NCC, Melorio, and Penna Consulting.

FINANCIAL TIMES

Lex

Apple's results defy belief almost as rivals struggle to sell cheaper machines.

Flu - the world's misfortune is good news for GlaxoSmithKline's

Comment

Revival of bid rumours help SThree

Morse up on takeover talk

THE TIMES

Tempus - Share Tips

Hold BHP Billiton
Euromoney: avoid for now
Buy Carr's Milling for income.

Business editor

Flu could give GSK another blockbuster
Going gets tough in Africa for Rio Tinto

Comment

Bet of the day: Vodafone.

Tiddler to watch - Dwyka Resources

DAILY TELEGRAPH

Questor - Stock Picks

Avoid GlaxoSmithKline
Buy Galiform.

Comment

Road to recovery appears bumpy but in place

Comment

Microsoft: a lot is riding on Windows 7 after the flop that was Vista

Entertainment One stock overhang cleared

THE INDEPENDENT

Investment - Share Tips

Sell Sportingbet
Buy Galiform
Sinclair Pharma - cautious hold.

DAILY MAIL

Yell's bosses' bonuses cause investor rebellion.

Investors bet on deal for Caledon Resources.
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Stock charts for beginners