I follow this thread and DB's valuable commentaries. In some ways his detailed commentaries remind me of hearing diagnosis by the medical community. It is measured, wise and to the point, but not necessarily written in everyday language. I have been discussing stocks with DB for about 8 years now, and his language is not mysterious or coded, to me. However, when I read some of the comments here, I cannot fail to believe that it represents a code which is apparently hard to crack.
Let me review 2 charts in every day language. Here is TKLC:
stockcharts.com[h,a]daclyiay[pb20!b40!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
This is the very definition of a stock in a downtrend. Can you, with TA, or moonphases, or magic dust, predict the end of a downtrend with greater chances than simply rolling the dice? No. Always assume that Newtonian physics, although under attack by the Quantum guys, still applies in markets. A body in motion stays in motion; that is the way to play any stock,
index, or other financial instrument.
Here is an instrument in an uptrend, OIH:
stockcharts.com[h,a]daclyiay[pb20!b40!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Calling the top, or a topping pattern, in the OIH on this chart is, if not financial suicide, then financial gambling at the edge. Doing this is actually lining up the probabilities against you.
Kb |
