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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: oldirtybastard who wrote (34904)	11/6/2000 4:46:13 PM
From: SpecialK	Read Replies (1) \| Respond to of 42787

<.I mean logically charts patterns alone have to stop working or work less and less as more and more people follow them > I would disagree. A buy signal is given, everyone knows it is a buy signal, so everyone buys and it shoots higher, than a sell signal is given, everyone sells, and it shoots lower. I think this adds to the volatility and momentum aspect. You have to be faster. These swings can wipe people out and as they are wiped out, they may never return. As there is less of this "trading" money, the volatility and momentum will decrease. Just my opinion. During the September-October drop, there were many people that would jump in on a drop for a rally, which happened but only lasted a day or a few hours. Very painful.

To: oldirtybastard who wrote (34904)	11/6/2000 5:10:21 PM
From: donald sew	Read Replies (1) \| Respond to of 42787

oldirty... >>>> I wonder donald if these days trading against most common chart patterns would work better than using them as traditional indicators as so many people following them would already be buyers by the time the pattern is formed, and without further catalyst and resolution in the direction of the supposed move (since who is left to buy the chart?) <<<< You probably have a valid point. If that holds true, I would guess that the indicators that would lose reliability would be those like moving averages/major trendlines. The less known/less understood indicators would have a later/or lesser effect. Frankly, I have already noticed a less reliability, but not sure if I can attribute to more and more using TA or because of the extra variable of SECTOR ROTATION.