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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: george who wrote (3891)	11/11/1997 11:24:00 PM
From: Chris	Respond to of 42787

hi george, TA == Technical analysis.. study of price and volume.. ie: charts.. here is an informative site on the basics.. geocities.com basically, i use TA because I believe "everything is discounted" into the price.. FA might tell you longterm, but not at the current moment.. However, that does not mean FA is unimportant.. It's sensible to trade/buy stocks that are Undervalued and great earnings. FA will show you that.. Then use TA to TIME your buys. Without TA, how would you know when to buy ?? ======================== TA can also be applied to market direction. meaning the dow jones and nazdaq.. I know many people who predicted the crash 1-2 weeks BEFORE it happened... You asked everyone else, they will say the fundamentals of the economy did not change.. But you ask the TA people, the market DEFINTELY changed.. or else, what would have caused the crash.. ======================= TA is not about why or explaning why it occurs. FA does that.. FA says "earnigns are down or will miss expectation". TA, on the other hand, will just "measure" the result/effect!! not the cause. It will show you what will happen in terms of price. TA people could care less about the reasons behind the earnings downfall.. ======================== TA is more flexible. they can be used to jump between industry and industry, stock to stock.. In 30 min, i can look at 100 stock charts. FA takes more time and they are more focused on one sector (which is vulnerable/bad). What if the computer sector is weak for the next 6 months.. you gonna sit out b/c you're FA orientated only on that sector? So TA is more flexilble. ======================== TA is even more flexible because: 1) it can be used on currency, international indexes (asian mkts), commodities, etc. 2) it can be used for different time frames.. long term, short term, daytrader... all can use TA... just apply different time frames.. but the basics are the same.. ' hope it helps. all my opinions...

To: george who wrote (3891)	11/12/1997 10:19:00 AM
From: Robert Graham	Respond to of 42787

TA is technical analysis. It is the use of price and volume and their relationships in order to determine the probabilities of future action by the stock. The classical method is a chart based method that looks for price patterns, support and resistance levels, and perhaps calculates moving averages. The more modern form uses mathematically calculated indicators to suppliment what can be more explicitely read from the chart. This approach is more suitable for a computer based computation where the calssical technique, before the advent of the computer or even the calculator, worked by hand any calculations required in the calssical analysis approach. Other forms of TA also has been developed like Elliot Waves, Gann lines, and even atrological approaches. I for one do not adhere to the astrological approaches; heck I do not believe in horoscopes. But as you can see, TA has attracted many different followers who have brought thier own perspective to TA. Fundamental analysis involves utilizing the company's financial reports and other aspects of the business, like their products and how they are marketing their prodiucts in relation to their competitors, to determine the "value" of the company as an investment. The idea here is that the market will over time recognize the inherent or "true" value of the company and invest in its stock accordingly. This relates to the thinking represented by the Efficient Market Theory and its alternate forms (Strong and Weak). Next, there is the analysis of a stock's tape. Orthodox tape readers think nothing is important except the tape. The tape will tell the investor or speculator everything they need to know in order to make purchase and sale decision regarding a given stock because the tape reflects the action made by all of the participants in the stock which directly impacts the price of the stock. From this picture, the tape reader can determine the probabilities of the stock's next move in price. However, many tape readers combine their approach with TA, and even FA. There is another approach that looks at the fundamentals of the market, which personally is an area that I am not studied up on. From what I understand, the idea here is to examine the funamental forces in the market that impact stock prices. In other words, this approach is to determine where the money is moving to and how it is being used in the market. Tape reading and charting can help here. Also the periodic report that comes out which describes the short positions that the professionals have taken in stocks, for example.. Larry Williams is a technician that is following this approach which suppliments his technical analysis of stocks. I hope this helps. Bob Graham