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Non-Tech : Technical Analysis a la Edwards and Magee -- Ignore unavailable to you. Want to Upgrade?

To: Jim Roof who wrote (2)	3/19/1998 1:38:00 PM
From: marketbrief.com	Read Replies (1) \| Respond to of 40

Jim: I use candlesticks on everything now because my fundamental belief is that stocks move because of supply and demand. Fundamentalists can argue about value, but no matter how you cut it, even determination of multiples are determined by outlook, and a fundamental factor in determining outlook is psychology. The best thing about candlesticks is that they are real time. Almost every single popular technical indicator I know of is a variation of a moving average and as such, is always lagging. Candles can tell you who is winning the battle NOW. As for e wave, well, it is interesting in the theoretical realm but has no use (at least in my observation) in practical everyday trading. Most people I have ever met on the net, the punters who have a real job to support their trading habit, seem obsessed with using e wave, and more importantly, with being right in labelling, which is always revised in retrospect. This type of analysis does not work well in real life and should be relegated to study clubs, etc. although, like you, I acknowledge cycles in the grand scheme of things. I am always the first to point out, that even after the crash of 1929, the market did not vaporize into an apocalyptic end. People create bubbles and people just move on to build other ones. I have to get to the office, and will check back from there.