You can only know for sure via "hindsight", anyone that tells you differently...
You're right, of course.
I believe that TA is fundamentally a bunch of baseless hooey, but this is confused by the undeniable fact that when enough people believe in any form of analysis, that analysis becomes valid, if only for a while. So when enough market players believe that a stock is about to go up, or down, for some voodoolicious TA reason, the upward or downward pressure from holders of that belief is enough to make it happen. So in other words, while baseless, TA works. It works, that is, until one day the opposing forces of valuation and sensible analysis of fundamentals becomes great enough to counter the TA pressure, and the TA folks get caught with their pants down.
Dave |
