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

To: Boplicity who wrote (78449)	6/11/2001 5:44:14 PM
From: eichler	Read Replies (2) \| Respond to of 99985

B, <over whelming amount of people watching the market have no idea what a chart means> Well, ya got me there. ggg Never done a survey to see what % of traders read charts. I would suspect from the marvelous way that charts "work"(self-fulfilling prophesy), you may be underestimating traders by a long shot . Regardless, the "powers that be", the ones who run the show, are very chart savvy. They hire armies of chart technicians to keep them informed where key levels of price lay "hidden". I suspect if price of compx degenerates below the 2100 level I delineated by connecting the lows of 4/25, 5/16, 5/31, then 2000 (your nice round number) may do little to arrest the decline of price as traders run for the exit door. I would even imagine volume picking up nicely then as the "rumble" between bulls and bears escalates. By then, I think Zeev's figure of 1850 (62% retrace of recent bull run and 4/10 GAP) would be the main level of support but could be overshot in an attempt to retest the lows. I suppose there could be a bounce @2000, which would certainly support your statement. I don't see any special significance of that price level on the charts however (1960 or so is about the 50% retrace). Just curious....how do you arrive at the conclusion that most people involved in the market have no idea of charts. Not trying to start a row, just rather surprised by the statement! E