MailBag February 20, 2009 at 01:02 AM
Ed. Note - This mailbag article first appeared on StockCharts.com back in 2000. It is just as valuable now as it was then, so we've added them to our new Mailbag blog. Enjoy! Q: I appreciate Richard Rhodes' trading rules but I have a question. What rule do you use for taking profits on a winning trade? That is, you have entered a trade pursuant to your trading rules. You have been patient and the trade is profitable. Now the trade is going against you. When do you lock in your profits and get out? Also, when you enter a trade, do you set a stop loss? If so, at what level? Key Read More
MailBag February 13, 2009 at 04:06 PM
Ed. Note - This mailbag article first appeared on StockCharts.com back in 2000. It is just as valuable now as it was then, so we've added them to our new Mailbag blog. Enjoy! Q: I have been trying to learn how to develop and read charts, but am having problems. It seems to me charting is like programming, either you get it or you don't. I am hoping I am wrong and can begin to recognize patterns with in the charts. With all the various intangibles in charting, I am not sure what variables I should use. Can you recommend how to get started in charting and what variables I Read More
MailBag February 12, 2009 at 04:06 PM
Ed. Note - These mailbag articles first appeared on StockCharts.com back in 2000. They are just as valuable now as they were then, so we've added them to our new Mailbag blog. Enjoy! Q: What does the term "liquidity" mean? Is this the same as overbought/oversold? A: Liquidity refers to the number of trades (volume) that occur in a stock. The larger the volume, the more liquid a stock is. Liquid stocks are very easy to buy and/or sell. Large Caps are usually very liquid. Small Caps, on the other hand -- especially OTC (over the counter) and BB (bulletin board) stocks -- often Read More
MailBag February 11, 2009 at 03:35 PM
Ed. Note - These mailbag articles first appeared on StockCharts.com back in 2000. They are just as valuable now as they were then, so we've added them to our new Mailbag blog. Enjoy! Q: The Price Labels that appear on your charts seem to be one day late for buying signals. Can you move them up one day please? A: First off -- do NOT use Price Labels as trading signals. They are not intended for that purpose. The Price Labels are based on a calculation that looks "ahead" in time. They are similar to the Zig Zag indicator in that regard. While it looks like Read More
MailBag February 10, 2009 at 03:31 PM
Ed. Note - These mailbag articles first appeared on StockCharts.com back in 2000. They are just as valuable now as they were then, so we've added them to our new Mailbag blog. Enjoy! Q: It is my understanding that a TRIN above 1 is bullish and a TRIN below 1 is bearish. Is this correct? A: There are a number of analysis interpretations that have evolved over the years. Richard Arms, the originator, uses the TRIN to detect extreme conditions in the market. He considers the market to be overbought when the 10-day moving average of the TRIN declines below .8 and oversold when Read More
MailBag February 05, 2009 at 09:16 PM
Q: On February 5th, 2009 the S&P 500 index reversed down to 832.23 yet your P&F chart did not show the reversal. Why? A: The rules for updating P&F charts are very specific and they can frequently lead to confusion like this. When updating a chart, the first thing you do is you look to see if you can fill more boxes in the current column. If you can, you do - and then you stop. It doesn't matter where the stock actually ends up at the end of the day. You only reverse into a new column if you can't fill any more Read More
