Do you believe that Sentiment is already contained within the charts?
Yes and no. Is it in the charts? Probably. Can we always see it? Probably not.
Which carries more weight .. any or all microcosm sentiment polls which has a bias based on the participants view ..
or the charts?
Well, the correct answer is: It depends. We trade price and not sentiment, so ultimately, price is what matters most. That said, one can avoid a lot of whipsaws and false breaks with the use of sentiment. At the lows of 2003, sentiment trumped charts. Also at other turning points.
Personally, my approach is to always use both price and sentiment and I DO recognize that sentiment is reflect in (or predicted by, even) chart patterns. The problem is that it's not very scientific.
BTW, I do have a hand in some chart work. You can check it out at traders-talk.com
It may not interest longer-term stock traders, but it's pretty good chart work (I'm not responsible for all of it, I just contribute and edit). That board won't be open after the weekend, but for now, it has all performance and every issue published over the past few years.
Mark Young |
