As a starting point, run an AIO and use the buy and sell signals generated by the BBI indicator.
For more info on how to set up the parameters for an AIO, see the section entitled ===== GETTING STARTED WITH BEST CHARTS ===== in my post http://www.stock-anal.com/ubb/Forum1/HTML/000684.html The market travels in cycles, i.e. uptrend, downtrend, uptrend, downtrend, etc. A buy signal is generated following a downtrend, when BC (or whatever TA system you are using) calculates that sufficient reversal has occurred that the downtrend has ended, and the price is now rising, thereby starting a new uptrend. A sell signal is the result of the reverse, i.e. that an uptrend has ended and the price is now starting to fall, starting a new downtrend. Whether you make a profit or not depends HOW FAR the price rises during the uptrend, and how quickly you sell after the uptrend is over (i.e. if you wait too long your profit will be eroded by the subsequent downtrend). In its simplest form, Technical Analysis can realistically only tell you when a change in trend has occurred � it does not attempt to forecast how long the trend will last, or how far the prices will move during the trend. If the price does not rise far enough during the trend to cover your costs (note: BC does not take transaction costs into account), and/or you fail to exit before any profit has been consumed by the subsequent reversal, you will make a loss on the trade. Professional traders use `stop losses' to exit trades that have clearly failed. This means that if the price falls to a certain point, they will exit before the situation worsens, which could well occur before the sell signal occurs. The maxim of cutting losses short, but letting profits run, is a sound one. If the trends are lasting only a short time, i.e. buy signal is followed quickly by a sell signal, then there is nothing you can do about it. Even the most experienced traders struggle to make money in a `choppy' market. In this situation, try trading other shares, or markets, where the prices are `trending' more strongly. You can also increase the probability of success by buying and selling where the weight of shares/indices in the same, or other sectors (industries), are also behaving similarly. In other words, check that you have the backing of the rest of the market. BC's portfolio facility can help. For details, see the paragraph starting `BC's portfolio facility can be very useful...' in the same link listed above. Good luck David --- In [EMAIL PROTECTED], "midemmy" <[EMAIL PROTECTED]> wrote: > > Hello > > > I have been using B-Charts now for some days. Pls I dont know how to > follow the buy and sell signals. Even when those were followed as > indicated on the chart , it is not working to produce any profit. I am > paper trading now , I am making loss. > Pls is there any way to really understand how to interpret the Buy and > Sell signals given on B-Charts? > Which of the Indicators should give me a signal strong enough to make > a profit? > > Thanks. > > DEmmy ------------------------ Yahoo! Groups Sponsor --------------------~--> $9.95 domain names from Yahoo!. Register anything. http://us.click.yahoo.com/J8kdrA/y20IAA/yQLSAA/GHeqlB/TM --------------------------------------------------------------------~-> Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/bestcharts/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
