Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Analysis Class for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (681)	12/31/1997 5:57:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

T/A revisited. Found most people fascinated by the complexity in T/A, but lacking understanding. T/A is trending. You draw a line based on two points above the curve. Then you draw a line connecting two points below the curve. This establishes the trend going up or pulling back or just flat. The gap between is the trading range; the two lines are "resistance" for the line on top; and "support" for the line on the bottom. If the price goes above the resistance line later, it is a "breakout". You will have a change from pulling back to flat, or from flat to moving up. If the price pulled back down below the support, then the trend is going from moving up to flat or from flat to moving down. Nothing mysterious. This is enough to guide you in your investments. Moving average in so many days, just tells you the cost of the stock that people have bought. No one likes to lose money. So the cost has some bearing on the future of the stock movements. Price gets below cost by a great deal, people might average down, giving the price support. Price gets way above cost, people who fell in love with the stock will buy more, creates some time a momentum, "a nice move". Nothing myterious except what is way above and what is way below cost. You have to make that judgement. So, it is useless, if you make the wrong judgement. Stock business is, if you love the stock you buy them. If the price goes down you love them even more. This statement is an important qualification to Moving average judgement. All other indicators are to fit special conditions in the market, most people can not fit them in any situation once. No repeatability means you are going to lose money if you do those indicators. Paper investing by charting is a bad practice because it gives you false confidence. Your own buy and sell will change the curve, making the assumptions inaccurate.