Forum Archive Index - August 2001

["Ben Dutton" <bendutton@sharechat.co.nz>]

Phaedrus,

I've always enjoyed and valued your comments even though I am not a follower
of technical analysis myself.  I would like to pose a question for you
however.

In a small and relatively illiquid market like New Zealand's is it not
possible for some of these technical indicators to become a self-fulfilling
prophecy?  For example, if even only a handful of chartists saw a "sell"
signal on a small and illiquid share that they held and proceeded to dump
them on the market, would this action not exacerbate the downwards trend
thus proving the chartists "right" even though the drop is only the result
of them selling at once?  And the same situation applies for "buy" signals.

I'd be interested to hear your comments on this issue.

Best Regards

Ben Dutton


----- Original Message -----
From: "Phaedrus" <Phaedrus@techemail.com>
To: <Sharechat@sharechat.co.nz>
Sent: Thursday, August 30, 2001 11:41 AM
Subject: [sharechat] CEN Chart


> Mat,
>      CEN is currently in a short and medium-term uptrend. Technically,
buying at current levels would be considered a high risk proposition. This
is because the Stochastic Oscillator (shown in the upper plot) is greater
than 80 and is thus in the OverBought zone. Low risk entry points are when
the Stochastic Oscillator is in the OverSold zone (less than 20), and has
just climbed above its moving average trigger line (red). The two buy points
on this plot meeting these criteria are marked with green arrows.
>   Right now, CEN is a Hold, not a Buy. Short-term traders would be getting
ready to sell.
>                  Regards,
>                           Phaedrus.
>
> _____________________________________________________________
> Are you a Techie? Get Your Free Tech Email Address Now! Visit
http://www.TechEmail.com
>


----------------------------------------------------------------------------
----






----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.