InformedTrades
Register as a Member
    Why join? See our testimonials.

Register Front Page See Today's Posts Site
Map
Free Trading
Courses
Shop
Front Page > Forum Central > Traders' Discussion Forum

 
Thread Tools Search this Thread Display Modes
Old 08-12-2010, 09:47 AM   #1 (permalink)
NewToTA
 
Posts: n/a

Thanks Stats
Thanks (Given):
Thanks (Received):

Texas Instruments still good?


I was wondering if anyone can help me with my Chart reading of TXN.
From Jun 14 2010 to August 9th its making an ascending triangle.

The CMF indicator is showing strong accumilation from July to August.
Its currently at 0.280.

For today the price has dropped but I'm thinking TXN is still strong.

Am I right in beliving this? I believe it should go up right?

  Reply With Quote
Old 08-12-2010, 10:00 AM   #2 (permalink)
 
Join Date: Aug 2010
Posts: 8

Thanks Stats
Thanks (Given): 0
Thanks (Received): 0

NewToTa is offline   Reply With Quote
 
Old 08-12-2010, 01:12 PM   #3 (permalink)
InformedTrades Founder
 
Simit Patel's Avatar
 
Join Date: Mar 2008
Location: informedtrades
Posts: 5,779

Thanks Stats
Thanks (Given): 745
Thanks (Received): 578

hey newtota, welcome to IT!

yup, that definitely looks like an ascending triangle to me....but i pulled up some TXN charts and saw a different picture:

daily:


weekly:



so it looks a bit like a symmetrical triangle to me, especially the weekly. personally i'd wait a bit longer to see what the candles and moving averages look like as we get closer to the end of hte triangles.
Simit Patel is online now   Reply With Quote
 
Old 08-12-2010, 01:44 PM   #4 (permalink)
 
Join Date: Aug 2010
Posts: 8

Thanks Stats
Thanks (Given): 0
Thanks (Received): 0

Thanks for your response. So I'm just wondering. I always heard you should look left and from what I see from your charts you went way back in time.

So I guess my question is was my outlook very short term? I'm not sure how to explain it. Because it seems like you took a very wider view compared to my narrow view.
NewToTa is offline   Reply With Quote
 
Old 08-12-2010, 01:48 PM   #5 (permalink)
InformedTrades Founder
 
Simit Patel's Avatar
 
Join Date: Mar 2008
Location: informedtrades
Posts: 5,779

Thanks Stats
Thanks (Given): 745
Thanks (Received): 578

i think it really depends on your strategy; many people will not want to take as wide of an outlook as i did, particularly those who are tradign intraday. i personally like to look at multiple timeframes and see them all support the same view, and i would like for them to support my fundamental view as well.

how candlesticks react at certain levels is key, and many traders give more credence to horizontal support/resistance lines than diagonal ones.

what i think most traders will agree on is that the more evidence you can have behind your trade will give your trade a higher probability of success, which, coupled with the right risk/reward ratio, should lead to consistent, sustainable success.
Simit Patel is online now   Reply With Quote
 
Old 08-12-2010, 02:17 PM   #6 (permalink)
 
Join Date: Aug 2010
Posts: 8

Thanks Stats
Thanks (Given): 0
Thanks (Received): 0

Its great to finally get some feed back from someone. I've been sort of a self study so its great to hear other opinions.

So I have another question for you. I thought I had an ok grasp on trend and support lines. If I took your daily chart and made a support line at 22.50 would we now see a descending triangle?

It seems we can have multiple ways to interprete the chart depending on how you view it. How do you know which best to use?

And finally looking at my first chart and say I was intraday trading would the CMF support the short term gain? Also if I do a fibocanni from the lows in July 2010 to the high in Aug 9th 2010 I see the current price is heading towards the 50% line. I was thinking it might bounce back.

Thanks for your help getting a grasp on this stuff.
NewToTa is offline   Reply With Quote
 
Old 08-12-2010, 04:00 PM   #7 (permalink)
InformedTrades Founder
 
Simit Patel's Avatar
 
Join Date: Mar 2008
Location: informedtrades
Posts: 5,779

Thanks Stats
Thanks (Given): 745
Thanks (Received): 578

lol, yes i guess that could be a descending triangle! interesting to see that we can find all three triangle patterns here.

as for which one to use, looking for confirming evidence is the key i think, and multiple time frames. i have much of my view dictated by fundamentals -- i'm in the double dip camp, though i think US equities are especially hard to evaluate at this point, and i personally feel more comfortable with other markets. so, now that you mention it, i actually like the idea of seeing if we can break below the descending triangle, and entering on a pullback of the break.

i'm not much into indicators and haven't used CMF, so i don't know about that. i do like fibonacci, especially if i see it coinciding with other key data, like moving averages or trendlines. for me though, candlestick patterns are the most important piece of information in a chart; both actually chart patterns as well as long wick candles that can suggest where trends may reverse.
Simit Patel is online now   Reply With Quote
 
  




Tags
ascending triangle, descending triangle, triangles, txn

Help InformedTrades grow. Click +1 if you enjoyed this thread.

Register to Comment
Thread Tools Search this Thread
Search this Thread:

Advanced Site Search
Display Modes

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off



All times are GMT -5. The time now is 05:04 PM.


Creative Commons License

InformedTrades is dedicated to empowering traders with knowledge. Learn more about our mission statement, and our charity endeavors.

Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Search Engine Optimization by vBSEO 3.3.2
vBulletin Optimisation by vB Optimise (Reduced on this page: MySQL 6.38%).
vBCommerce I v2.0.0 Gold ©2010, PixelFX Studios
vBCredits v1.4 Copyright ©2007 - 2008, PixelFX Studios