To a very large extent they are self-fulfilling. When you have so many technical traders that use GAPS as one of their investing tools, you can see why it is so self-fulfilling. Same goes when a stock is in a trading channel...Check any stock that is in a channel and watch what happens to it when it breaks above or falls below the trading range (It either takes off or tanks), 1-2-3 Top and bottoms are other examples, following candle stick patterns, tea leaves <GRIN>. Hey if someone out their looks for these and buys and sells accordingly, then one starts to see how self-fulfilling they actually are. There is no one technical indicator that is 100% right, heck, most of them are in the 60%-70% range, but if you do your home work and like the fundamentals, and then look at the technicals and you see where support, resistance, break-out points, and maybe a few buy or sell signals, that may help in your entire trading/investing stragegy.
Bottom line, do your homework and invest if you feel comfortable.
Brian H. |
