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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: profile_14 who wrote (2617)	3/5/2005 8:29:06 PM
From: chowder	Respond to of 13449

What is your time frame? The technicals can be interpreted any way we wish but we need to know what time frame we're trying to provide an analysis for. Are we trying to guess a top? Are we trying to guess a correction? Are we looking to buy? Are we looking to short? What time frame do we have in mind? I know some people are trying to catch the top and settling for one or two days of downside and then getting out. There's nothing wrong with that strategy but, the correct play would have been to go long on the dips and sell the rallies, not short the rallies and sell the dips. There was more profit to the upside with less risk by buying the dips and selling the rallies. That's why noting the trend is so vital. There is more profit to the upside in a Stage 2 stock as opposed to shorting strength and taking the small gain. There's nothing wrong with small gains, but wouldn't it be better to have larger potential? If we're not careful in our analysis, TA can predict 20 of the last 4 tops. I know the temptation with technical analysis is to predict future price movement. However, it isn't any more consistently correct than any other method of picking stocks. I can't prove it because nobody is willing to list every trade with entry and exit prices for us to track. Again, that's OK too but, the technical sites I have monitored, that tried to predict price movement, didn't do any better job of picking stocks than any other method out there. The value in technical analysis, in my opinion is in the confirmation that things have changed. Confirming that money flows are positive. Confirming that price is trending higher. Confirming levels or price resistance or levels of price support. Confirming if the stock is trending or range bound. Knowing these things and having them confirmed is what provides us with an edge, in my opinion. Then it's a matter of having the correct strategy in place for that particular condition of the market. dabum