Further report on Elder--
It's kind of good to read, even if you knew some of this stuff, it's good to remind yourself. Such as:
Look to the close of the day for institutional message, and the opening for "amateur hour." Take amateur hour as contrary indicator. Combine the messages of charts (daily, weekly, monthly). Most of the time, stocks trade in a trading range. Try to buy/sell on shorter bursts (or candlesticks) not when the frenzy, or longer bursts, is high. A professional always cuts his losses--amateur gets emotional and wants revenge, or to be made whole again, so they hold their positions too long. Why do resistance/support levels work? In part because we remember our "pain" (hey he's a shrink,b ut I think there's some truth)--i.e. where we had to buy or sell. I.E. they're psychological not fundmanetal. In fact, almost all the t.a. reflects pyschology--but use it. Etc. I'm finding this pretty useful just to clarify a basic approach.
Rok, I did not know you had an evil twin! Will you introduce me to him LOL. |
