To: chowder who wrote (22893 ) 3/12/2005 10:48:59 PM From: whitepine Respond to TA is not an objective operation. My understanding is that people make reasoned applications/deductions about statistical patterns as they attempt to understand the future. <<<Trying to determine the future based on the past by using TA is not any more effective than those who use FA and don't have the correct numbers to come to an accurate conclusion. FA doesn't move prices anyway. Buying does. There has to be more buying than selling and that's TA. FA is something that we humans need to justify the reason for a trade. It doesn't impact price action. FA may cause some people to buy but it's the actual buying that drives prices and it doesn't matter what the reason is for buying. Does it matter if a 10% return is made because of a technical bounce or some news related item that a company is coming out with a new product? Why should I care what causes the 10% move as long as I define the buying patterns in advance? Successful trading is a matter of defining at what point will demand overcome supply. And, if you are wrong, at what point do you admit it and protect your capital. That can only be done through TA. No sir! Price action is defined by the "proper use" of TA and the proper use of TA isn't about patterns. It's about supply vs demand and how they relate to price support or price resistance levels. Support and resistance are based in the psychology of the market, and if one understands the psychological habits behind buying and selling, then one can anticipate future price action with a little more accuracy. That's TA!
