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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (62709)	11/17/2000 12:42:20 PM
From: el paradisio	Respond to of 99985

Well,watch INDU...a break and closing below 10,600 will be very negative. In my balancing analysis, Nasdaq is too weak to make any further gains by itself...it must be supported by INDU consolidation at 10,600-10,800 area. Thanks for advice...I am thinking... Regards, el

To: HairBall who wrote (62709)	11/17/2000 7:37:26 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 99985

Remember to "think like a criminal"! LG I've always liked that statement ;). I frequently use the phrase - "look for the diabolical". More examples a long while ago one could feel fairly sure that a break of a low of a 'shooting star' at the end of an uptrend was a reliable topping signal. Now shooting stars and their converse, hammers, are so frequently spotted that they are of little use - all on their own. The market dynamics that produce them are probably still genuine, but frequently a retest of highs or lows will plow through these areas that might once upon a time have been deemed 'safe trades'. No matter, the trader observes this and develops new trading strategies. Does it mean that TA no longer works? No, of course not. The measurement is still accurate - we spotted the pattern. But what is done with the information, the trading rules, can determine loss or profit. I know I'm replying to the choir here, but I do think that some readers may not have considered separating the TA from Trading in their minds. cheers mw