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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Richard Estes who wrote (10615)	6/8/1999 3:46:00 PM
From: Richard Estes	Read Replies (2) \| Respond to of 12039

The other day on a list that I follow, a newbie to RT asked "how do you tell what is buys and what is sells?" The answer is you really can't, you can only guess. a stock can be bought at the bid to the ask and any point in between. The same with sales. Now if you can't tell it in RT, imagine how in the dark you are using daily info. Most indicators use the close for their price component and some rationalize its use by saying that was where it was at end of day. I suggest you look at (HLOC)/4 in place of using the close in your indicators. Those that watch RT charts can see many examples where a stock travels up and down the range during the day. The close is not reflective of where it traded the most, that price might reflect only a minute amount of volume. The average price may be the best representation of that days price. People use the term "smart money", who is "smart money"? How do you know what they are doing? You don't. People will say a block trade is smart money. Simply because someone trades 10,000 or more shares do not make them smart except in most cases they outsmarted other people and took their money. less than 10% of the money managers beat the S&P, they are using other people's money in 99% of cases. I have never seen smart money, we know it is there but we have no way to identfy it.

To: Richard Estes who wrote (10615)	6/9/1999 11:42:00 AM
From: big run	Read Replies (1) \| Respond to of 12039

Thanks Richard....but like always I have more questions if you wanna field them. In your ATR you use H, L, O & C....I guess I don't understand the logic of adding the O & C into the equation. Someone pointed out that the O & C could be very minor to the time spent there or the amount of volume there so it would seem that they would be skewing the actual range. Yes?? No??? Also, with the float turnover that you've talked about in the past and Andy recently talking about it could you share what you're looking at when you do your float analysis??? Thanks, Mike