High Tolerance Plasticity Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : High Tolerance Plasticity

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: whitepine who wrote (22891)	3/12/2005 11:21:24 AM
From: chowder	Read Replies (2) of 23153

>>> TA is not an objective operation. My understanding is that people make reasoned applications/deductions about statistical patterns as they attempt to understand the future. <<< And those that do, underperform the market, just as 95% of retail investors do and 80% of fund managers. Trying to determine the future based on the past by using TA is not any more effective than those who use FA and don't have the correct numbers to come to an accurate conclusion. FA doesn't move prices anyway. Buying does. There has to be more buying than selling and that's TA. FA is something that we humans need to justify the reason for a trade. It doesn't impact price action. FA may cause some people to buy but it's the actual buying that drives prices and it doesn't matter what the reason is for buying. Does it matter if a 10% return is made because of a technical bounce or some news related item that a company is coming out with a new product? Why should I care what causes the 10% move as long as I define the buying patterns in advance? Successful trading is a matter of defining at what point will demand overcome supply. And, if you are wrong, at what point do you admit it and protect your capital. That can only be done through TA. Fibonacci retracements, moving averages, cup and saucers are merely tools to capture the imagination. People like to be sold. These tools help to sell TA. They aren't any more effective than FA but they capture the imagination. Capture the imagination and you make a sale. The product may not be worth a damn but the sale is made. No sir! Price action is defined by the "proper use" of TA and the proper use of TA isn't about patterns. It's about supply vs demand and how they relate to price support or price resistance levels. Support and resistance are based in the psychology of the market, and if one understands the psychological habits behind buying and selling, then one can anticipate future price action with a little more accuracy. That's TA! dabum

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next