Why TA is NOT bunk.
Haim, if you look at the volume on 12/2 and 12/3, when ERICY lost 10% of its value in two days, it was twice the normal volume on each of these days. This was followed by a rally, on less volume. Smart money had left. I agree that it was in an uptrend, but the volume had been slowing down since early November, while the price continued to rise. I realize that this is hindsight, and certainly wasn't a perfect reason to go short, but it was there nonetheless. And you can still use t/a for support, and decide what to do with your position based on that support.
Given time, I came come up with a handful of stocks that have come way down from their highs, and can still show a great revenue growth when compared to those blue chips, (let's not even talk about the internuts) so where's the sense in that?
We all play with our own toys, and nothing fulfills all needs.
I will never say FA is bunk, but I will never trade based on FA either. But that is me.
Respectfully, Debra |
