Yes, that's why I occasionally (not often) look at formations in the indicators. But the indicators themselves are intended to help you identify price action, and price is the most important issue. Indicators are second order, and formations in indicators are third order. Which is not to say they aren't useful, but you understand, I'm sure, because you look for confirmation in Price rather than depending on the indicator formation entirely.
My concept of securities investing:
The primary objective of securities investing is to make as
much money as quickly as possible in a manner that is consistent with one's resources and risk tolerance.
So price and time are important, as are reliability and drawdown (associated with risk tolerance and resources). Time, however, is the "event" that is relevant to our lives, and is a proxy for technical events that occur in the stock price action. PnF ignores time, which is a weakness in the system, but not a fatal flaw. But PnF captures some significant events. |
