Turning points in my opinion are best uncovered using price (and often volume) alone.
On the other hand, there's a *ton* of people that look at common indicators and if they think a MACD cross over, despite the current environment, is bullish, well, they may well act on it and buy like mad.
Good comments Michael:
Ultimately, it's where the price goes on what volume that determines profit and loss for all of us... : >
And yes, if many people act on a particular indicator's signal, it can move the market, for a while, at least... : >
I'm not married to any one signal... I try to see what worked in the past... Then I follow the holy grail (price direction relative to news events)... If they are in sync, I go with it, especially if the prevailing sentiment is going the other way...
We've had, bad for the market, ECI and MSFT news... Yet the market has shrugged it off... This is a classic contra move against seemingly bad news... We've seen it before, all the way up from Dow 4000... This doesn't mean that the market reverses as FED D-Day nears... But, in the meantime, enjoy... : >
stockcharts.com
Jim |
