Sle

[legion3pm]

SLE looks to be forming up and the MACD is looking good too.. am i lookin at the technicals right or am i way off??

[Goods]

3 yr chart shows an ugly downtrend. Might be good short term but I'd stay away. IMO

[legion3pm]

thanks GOODS. got a question for all that can help. i been reading books and i look at lots of charts every night and i just cant get a grasp on what a breakout looks like as far as technical analysis goes. i usually look at a one year chart with 50 and 9 day sma also look at the volume and MACD. SLE looked like it was shaping up for a good trade and MXWL looked like it was breaking out yesterday to me too. is there something i need to wait for or pay closer attention to when i look at the charts. i know experience will come with time but i feel like im completely lost and i dont trade much i watch a lot and try to figure out if it would have been a good trade so i dont just throw money out there.

[Goods]

You're on the right path. I know much more than I did in the summer, trying to daytrade. (And I learned to stop daytrading for one. I don't have enough skill yet.) But there are those, like Whodi for example, that know 50x what I do so I know there's more to learn, it's not that I just don't get it.

I personally think a better signal on a longer chart like a 1 yr is the 50 & 20 day MA. The 9 is too choppy. But it's a personal preference. Yearly charts, I'll look at the 200 MA. The EMA is more accurate than the SMA but that's personal preference too.
It helps me to look at the major trend's direction first. If the major trend is down like with SLE, it's likely to continue downward eventually, unless it breaks the trendline. And has the volume to make it a legit breakout.
You can look at the RSI direction and the MACD. Are they moving in the same direction as the price trend? As a rule for longer term trades, always go with the major trend and get in when it's pulls back to the trendline.
A good example is POT on a 1 yr chart. The company came out last year and upped their guidence and said demand will be strong for a long time. Everytime it pulled back to the 50 MA, you could load up. If it broke downward, you'd stop out and wait to see if it was legit or if it was a whipsaw, like in Aug 07 or Jan 08.
Btw, POT's tripled in a year. The RSI and MACD peaks at the highs are showing some bearish diverenge compared to the price highs. The uptrend is still intact so I'd stand aside unless I see the trend reverse.
That's some basic stuff.
As far as breakouts, could be a trendline break, maybe a stock's been going sideways in a channel for a while then breaks over or under with heavier than usual volume. Maybe a triangle pattern that's ready to pop, etc.

Mostly, it's good to figure out what works for you then stick with it. Try some books that specify how people trade and follow what works for you as you tweak it to your personal taste. Hope this helps.

[legion3pm]

Thanks GOODS you're the man. Ill just keep looking at charts and reading and learning as much as i can. I love to come in here and see what everyone is looking at but i dont like to get on board yet b/c i dont feel like ill learn anything if i just ride someone else's coat tails but i do love the posts b/c then i get to try and figure out what it was on the chart that you seen to make you like the stock. once again thanks GOODS and to everyone else that posts too.