kim:
TA works ESPECIALLY well for these situations because no one is watching the chart. I have TradeStation 4.0 real time and if one can resist the projection thing (which we did when we went pro) and just use trendlines, support and resistance, it works. I use only a handful of indicators, most importantly Japanese candlesticks, volume and 30 period weighted moving average. The bottom line about TA is not the fancy ewave labelling stuff, like everyone on the net is so in love with, trying to get THE TOP. Since the real cause of a stock's movement is simple supply and demand, the only thing we need to diagnose is which side is winning the battle of the buyers and the sellers. It is not possible to make projections, etc. except on patterns like H&S and triangles, but even then who cares, just join the winning side, and when they are no longer winning, switch sides. That is all.
Forgot: Money management is everything. Always have a stop loss. I enter mine along with my order. |
