Stock Chart Smarts: Technical investing know-how

Posted April 4, 2008

“I still have a nagging paranoia that the guys who see meaning in head and shoulders tops or Elliot Waves are laughing at me for believing their guff. Even though I know it’s not a hoax. I think.” — Lynn Carpenter

Blogger’s note: Lynn Carpenter has been writing a series on technicals and chart reading called Chart Smarts for the free email newsletter Investor’s Daily Edge. And I thought you’d appreciate her expertise. Below you’ll find the third article in the series. You may want to check out articles one and two right now or read on for more.

by Lynn Carpenter

Baltimore – (TFN): You’re in the wine store looking at shelf tickets, hoping for a clue. The tag says this fine wine that is chewy with a long finish and notes of fig, vanilla and tobacco. Huh?

Back in my Gallo Hearty Burgundy days, I swore they made that stuff up.

As a widow and single mom, I wasn’t buying any $30 bottles of wine back then. Actually, that was so long ago that a bottle of Mateuse was still considered a nice hostess gift. Anyway, the Gallo was my good stuff. And my bad stuff. I like reds. You didn’t need a wine knife to open it. It was priced right.

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Stock Market Shocker: How a Bunch of 5th Graders Made Fools of the Trading Elite…!

Wall Street wants you to believe that you have to entrust your money with the professionals and all their skills, resources and systems, if you want to make money in the markets. It’s what these guys do for a living! How could you possibly beat them?!

Nothing could be further from the truth. In fact, I have used an embarrassingly simple secret to make $15,048 in just 30 days… and boost my overall account balance 152% in less than a year.

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Well, along came Andy, a man who knows his grape and was willing to share a bottle and what he knew. Ignorant as I was about wine, it turned out that I have my sharp taste buds and sniffer. (Wine snots call that a palate.) I just needed a little practice on the wines from the shelves at the back of the store. These days, if you tell me a wine has notes of licorice or cedar it makes perfect sense to me. I can easily detect the flint in a Graves and the barnyard in a Pinot. Though I still can’t remember vintages.

Chart reading is like that. Some of the features that experts find in them sound like pure baloney if you’re not an initiate. I’ve worked at it, and I still have a nagging paranoia that the guys who see meaning in head and shoulders tops or Elliot Waves are laughing at me for believing their guff. Even though I know it’s not a hoax. I think.

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On the other hand, I can interpret Bollinger bands six ways. I even do Bollinger-box point and figure charts—which is incredibly arcane of me.

There are hundreds of chart-reading tools, and you don’t need most of them. Some of them will make no sense to you now or ever. We’re all like that, some chart tools will speak to us, some won’t. But that’s why I started this chart reading for investors’ series with the simplest of visual tools—trend lines. Read on to learn more and find other articles in Lynn’s chart technicals series.

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Bottom tested: Buy, buy, buy - October 24, 2008

Posted by TFN-Investment Strategies · Filed Under Investment Strategies

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John Egan 6 months ago 1 point
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I've been following her articles. They are extremly clear and well written. I've read an awful lot of ...well, 'awful' articles... and several rather arcane books.... I'd like to see her write a book.. (Just checked - Nothing on Amazon.com... Too bad... ), so I'll have to keep compliling her articles. Highly recommended.

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