"...the Screen Painters .... these are organizations set up with a tremendous amount of capital in offshore venues who are designing and building program trading systems that manipulate price and volume that specifically triggers the buy or sell models of the people using TA"
That may well be, but the Screen Painters will still cause price and volume to dance across the tape, giving us evidence of their handiwork.
Most of the people that are supposedly "getting fooled into buying and selling stocks each day because they are using TA", in my opinion, use all the common TA techniques, ones that don't "work" in the market. For example, the breakout of the first hour's range. Or the breakout, period. The leave their stop orders in all the obvious places and this acts as a magnet as well.
I get so many questions from people wanting to trade breakouts, it's unbelievable, but how many people want to know about "traps", where traders are lured and then slaughtered?
Excellent example today: What about the tippy top of this big wedge that formed on the SP futures today? That little poke at the top, right at the announcement of the FOMC decision, was a great spot to get short. We were not fooled. We had been watching this build in real time all day, and I even went out for an hour before the announcement to get some air and eat lunch, knowing that this was the likely "program". We made 100 points on the corresponding NQ chart.
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Teresa |
