Ask Colin

Do US stocks lend themselves better to technical analysis than Australian Stocks?

In general terms, I don't think so, at least when both are liquid stocks. However, Australia has a fair proportion of rather illiquid stocks compared to the major US markets. For that sort of stock you need to go to the minor US markets and then I doubt such stocks are any better than Australian stocks to analyse.

I have often seen Alex Elder and others throw up Australian stocks and analyse them without missing a beat as though they were US stocks - at least so long as they were reasonably liquid.

I think the reason is that chart patterns are driven by people and they are remarkably similar anywhere in the world in the way they react to fear, greed, ego, hope etc.

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