Good Morning LanaTaylor,
I just read your posts and the very first thing I did was change the time periods to 3 year weekly on both INDU and WMT. It's much easier to see the long term trend this way. This is why I added 3 year weekly charts for the N52WH list. Also I spent time researching the indicators as to type. One should keep 'trend following' indicators separate from 'oscillators'. You have trend following indicators on the INDU chart and a mix on the WMT chart. Look at the chart list I made and follow my lead as to grouping indicators, just a suggestion.
As to the above Elder writes,
Trend following indicators are coincident or lagging --they turn after trends reverse. These indicators work best when markets are moving but give bad and dangerous signals when the markets are flat.
Oscillators are leading or coincidental indicators and often turn ahead of prices. They catch turning points in flat markets but give premature and dangerous signals when the markets begin to trend.
Elder writes, 'The single best signal comes after ADX falls below both directional lines. The longer it stays there, the stronger the base for the next move.'
and 'When ADX falls below both directional lines, start getting ready, because major trends emerge from such lulls.'
We can easily see that in the above charts. The INDU is bullish and the WMT is bearish. Use the stockcharts.com and 'annoteate' the above charts with horizontal support and resistance lines and angular trend lines. Also use the PnF charts to help locate support and resistance points.
Now you can reduce the time period to 2 yr and 1 yr weekly and then 6 mo daily to get an idea of where to take a position.
Remember what Mr. Ted Burge has recently typed, 'For newer readers please understand. We buy at support and not at resistance and make sure there is room for the price to move. Wait for a pullback it happens all the time, just look at the charts. When there is a profit protect it with a stop. Do not confuse buying at support to mean the next highest target. We buy at the next level of support that is lower. There is an assumption that selling (stop) at resistance means you have a profit, and buying at support means a lower level than you sold.'
AI
