I got the idea from an interview with John Murphy, when he was asked, if he could use only one indicator in addition to price action and volume which would it be. He said he would hate to have to do that, but if forced, he would use the moving average convergence/divergence on a weekly chart for the indexes.
So I decided to try it as a weekly chart scan for individual stocks, in a clearly bullish market.
Using that method, the Dow is still bullish, but I certainly would not bet the farm on it.
stockcharts.com[l,a]waclyiay[dd][pb50!b200!f][vc60][iLah12,26,9!Lg]&pref=G
For me, TA is simply a helpful method of increasing the odds in your favor. I trade full-time, for a living. I spend a lot of time on research and chart scans. In the end, money management still makes the difference.
Too many folks want a chart or a person to "tell them what to do." I believe those folks are much better off, in the long run, if they do some research then use mutual funds.. |
