Forum Archive Index - October 2003

[Phaedrus <Phaedrus@techemail.com>]

Shayne,
       The charts I post use MetaStock software. There are plenty of other ways 
of achieving essentially the same result though. There are many on-line 
charting facilities that you can access and use free. Go to 
http://www.sharechat.co.nz/education/lti.php and scroll down to "Online 
Charting" for more info on one of them.

Seawindpilot,
             Here is a chart of CAH for you. As you can see, for years this 
stock has gone nowhere. It is trendless, in an extended trading range. The 
picture is essentially the same regardless of the timeframe you choose. Some 
"Investors" would be prepared to hold this stock purely for its 7.5% yield. The 
downside risk would appear to be limited, ditto the upside potential. 
 Stocks like this can be range-traded. Backtesting tells us that one of the 
most profitable indicators here is the Relative Strength Index. This gives Buy 
signals when it rises above the OverSold level and Sell signals when it falls 
below the Overbought level. The RSI(18) is plotted at the top of the chart. You 
can judge for yourself how profitable this has been and decide whether this 
sort of trading is of interest to you or not.

            Phaedrus.

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