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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Catman who wrote (13602)	8/16/2001 9:41:19 PM
From: ig	Read Replies (3) \| Respond to of 18137

Then I'll take the liberty of jogging your memory a bit. TA works because traders and investors have memories. Traders and investors are spurred into action not only by news and events, but also by their memories of prior price events. For instance, I know some people who bought INTC near 47, on the first "dip" the day after INTC's calamitous warning last September. Over the next few weeks, INTC fell farther and then returned to that price twice. Each time it returned to that price, buyers were met by heavy selling and the price could not exceed that ~47 level. Why? Because so many who had bought the "dip" near 47 were anxious to get out as even as possible. It had nothing to do with "news and events," it was strictly a matter of emotional "memory" associated with that price. Experts in TA would have looked at an INTC chart at that time and would have seen that collective "memory" of the dip-buyers writ large and clear on a chart, and would have used it to their advantage, adding their own selling to the selling of the memory-driven get-out-even crowd. TA works because traders and investors have memories. It predicts price levels where buyers' and sellers' memories will generate supply and demand. And don't you forget it! :-) ig