Peter Ashton talked in one of the Trading Strategies sessions on Saturday His talk was called “An Event Driven Approach to Technical analysis.”. He is Vice-President, Product Management, Recognia (US) Inc. His site is here.
People have been using technical analysis for a long time, from 400 years ago in the Rice markets in Japan to current Dow Jones. You have a primary trend of 9 months to 2 years, an intermediate trend of 6 to 9 weeks and a secondary trend of 2 to 6 weeks.
The head and shoulder pattern shows a bottom in a market and is a bullish event. Also, if the stock price moves above its 21 day moving average it is bullish. He looks for first class short-term patterns. The hammer is a bullish good sign. Watch for a few days to see if a reversal takes place. This is where he used stop losses. He looks at indicators and oscillations. What is the tread? He looks at simple moving averages of 21, 50 and 200 days. He also looks for momentum. Classic patter is the symmetrical continuation triangle.
It is important to select quality. You will earn more, have less risk, and get passive income. Do not invest without knowledge. Learn from the best. He mentioned Geraldine Weiss, Charlie Munger, Bill Gates, Warren Buffett, John Templeton, and Peter Lynch. There are 2200 stocks on the TSX. Buy stocks when undervalued. Look at dividend and dividend yield. When yield goes up, share price goes down. For example, Enbridge is undervalued.
If yield is 5%, the stock is undervalued. Examples as BCE, Enbridge, and Encana.
On my other blog I wrote yesterday about Crescent Point Energy Corp. (TSX-CPG, NYSE-CPG) ... learn more. Next, I will write about Finning International Inc. (TSX-FTT, OTC-FINGF) ... learn more on Wednesday, November 28, 2018 around 5 pm.
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