Technical analysis, in general, is based on the belief that stock prices move in predictable patterns – an assumption that is debatable but provides enough empirical evidence to inspire many investors to trade solely on technical indicators, says The Globe and Mail’ Skot Kortje. The most important indicators employed in technical analysis, including long-term parameters (average prices for periods of 13 weeks and 40 weeks), price momentum and volume measurements over a three-month period, will be covered in great detail at Golden Networking’s Advanced Market Timing Experts Workshop 2011, "Master Market Timing with the Leading Technical Analyst" (http://www.AdvancedMarketTiming.com), March 21 & 22, Singapore, and March 24 & 25, Hong Kong.
As a result of how indicators are calculated, these trading signals lag market movements. Some investors may find buying a stock that has already risen, say 30 per cent, to be a late call. However, technical analysis can still point to opportunities because the price momentum and trend characteristics of a stock – even a stock that has already advanced 30 per cent – often support a rally to even higher levels. Last year was a good year for technical trend traders, and it shows in the results of some of the trades featured by Kortje in his Stock Trends’ column. There were 46 stocks profiled in his column in 2010, although 17 trades were closed out by unfavorable midyear moves.
Many of the stocks profiled by Kortje in the second half of the year were chosen because of technical signs that price resistance levels would give way to the sector trends identified in the column. Generally, the objective of these trades was a modest 10- to 15-per-cent upside. However, some trades were expected to deliver more. And they did. There are still 27 “buy” stocks profiled in 2010 that remain as open trades. Most have been profitable. The average return on these trades is about 18 per cent after transaction costs.
Advanced Market Timing Experts Workshop 2011 is produced by Golden Networking (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs, investors and diplomats, founded by former McKinsey consultant and Columbia Business School MBA Edgar Perez. Upcoming Golden Networking's Forums and Business Receptions include:
· Modern Derivatives Trading Experts Workshop 2011 Hong Kong, "Trading and Hedging with Interest Rate and Currency Derivatives" (http://www.ModernDerivativesTrading.com), March 31 & April 1, Hong Kong
· High-Frequency Trading Leaders Forum 2011 New York, "How Speed Traders Leverage Cutting-Edge Strategies in the Post-Flash Crash World" (http://www.HFTLeadersForum.com), May 16, 17 & 18, New York City
Golden Networking has compiled the insights of top experts and industry practitioners and produced DVD Video Packages for its Leaders and Experts Forums, including:
Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to email@example.com. Golden Networking has been frequently featured in the press, including recent articles in The Wall Street Journal, "Happy Hour for High-Frequency Trading", The New York Times, "Golden Networking Helps Job Seekers Make Overseas Connections", Los Angeles Times, "Speed-addicted traders dominate today's stock market", Reuters, "Revamp looms as trading experts huddle at SEC" and Columbia Business School's Hermes Alumni Magazine, "10 Under 10".
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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