Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : HAL2 Buys and Sells -- Ignore unavailable to you. Want to Upgrade?

To: TREND1 who wrote (26)	6/29/2000 12:01:00 AM
From: D GALL	Read Replies (2) \| Respond to of 105

Larry, TJK, I was taught that TA is a method of predicting the future price of a security (i.e. stock) based on its past price performance (i.e. the chart). The basic assumption is that the price past performance- the chart, reflect the sum total of ALL the variables affecting the security's price in the market. In contrast, FA does not study the price of the security, but the economic value of the commodity itself (i.e. the company). It assumes that the supply and demand for the commodity will determine its economic value, and its security's price will be a direct function of that value. As Zeev allay reminds us "If the TA and FA do not agree- trust the TA". I think he is right because I see the FA as only one component of the many variables that cause the stock price movement. (To enter a trade we really should look for the TA and FA to agree that there is a trend, and let a trailing stop exit the trade) As to the method of analyzing the chart- Statistics is as good as any other TA method as long as you keep your sample size big enough (not for a buy and hold approach). BTW Larry, I'm observing HALL1 and was wondering what are it's past results, in win/loss % and max drawdown. DG