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jm2552
09-14-2005, 10:35 AM
ChartGuru (or anyone else, but CG seems to really have a handle on candlesticks), may I ask a question?

I know that NWAC is a bad play right now (possible bankruptcy, and all) but looking at the 1 day and 5 day candlestick, as of today, wouldn't that indicate a rise, maybe to the 5.50 resistance?

I am studying candlesticks, thanks to the advice here, and this looks like a good oppurtunity to learn their intricacies. I don't intend on buying NWAC, just using it as a "case study". Thanks in advance.
TheChartGuru
09-14-2005, 04:27 PM
Technically speaking, NWAC was hit hard yesterday looking at that long red candle. It is now in no mans land. The price of NWAC has never been this low and I don't like to trade stocks without a good support and resistance level. Today NWAC got a "deadcat bounce" but it appears that it will go lower from here. Looking at a 10 day/hourly chart, you will see that NWAC has very strong RESISTANCE around $2.00. DO NOT trade this stock if you are not able to watch it every second. This is not a buy and hold!!!!!!!! One more thing, it is very dangerous to only use candlesticks for an entry or exit point. I use candles along with a stock's linear regression, support/resistance, RSI, bollinger bands and volume to pinpoint my buys and sells.

The Guru has spoken
jm2552
09-14-2005, 10:23 PM
And I thank you for my continuing education! I know support/resistance is VERY important, now I need to do some more studying of the other factors. Thanks for taking the time.
TheChartGuru
09-14-2005, 10:33 PM
NWAC got whacked in after hours trading. It's down 54%, down to .86! Ouch

The Guru has spoken
optimus25
09-15-2005, 12:59 AM
That's some major hurting going on in that stock. I can't even bear to look at the intraday charts. :(
optimus25
09-15-2005, 01:05 AM
Hey Chartguru are you familiar with MACD & Stochastic for buy signals in conjunction with volume?
TheChartGuru
09-15-2005, 08:17 AM
MACD and STOCHS are not my primary indicators. I have used STOCHS(5,3) and MACD(12,26,9) but I don't want to be overwhelmed with too many indicators. Sometimes indicators give conflicting signals. That's why I urge you to stick to just 3 or 4 and master them. Look at historical charts and see if your indicators were reliable for entry end exit points. You may need to modify the settings or perhaps find more reliable indicators. There is certainly no shortage of indicators in this technical world.

The Guru has spoken