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

To: Robert Graham who wrote (8789)	5/27/1998 10:48:00 AM
From: Chris	Read Replies (2) \| Respond to of 42787

your post on fibs and the "decision path" at that juncture illustrates the core idea of a TA signal. TA signal, in my definition, is a "collection" of data from your indicators and analysis to bring up a conclusion on whether it's a sell or a buy.. you cannot rely on one indicator to give you your signal. instead, you go "data hunting".. plot this and that.. then in the end, you stack the data together and try to conclude your analysis. furthemore, your fib example is a great one. At a cruical reisstance point (using your example), you have PLAN A, PLAN B, or plan C. but you don't take that PLaN until you see what the price action is.. i can say dell "might" go to 78.. but you look to see if you have confirming indicators/signals to suppor that claim.. many people simply just "take the 78, and think of 78." they think "ok.. dell will hit 78.. so i will see".. No.. that's why giviing price targets will sway your's and their emotions. you trade by looking at the SIGNALS. you dont trade by the number. DELL might hit 78.. but does that mean it's the bottom? DELL might not hit 78, but does that mean uptrend ensues? NO. only your indicators can tell you that. only when your system gives you a "buy signal" do you buy.. see the logic? a signal is not generated when DELL hits 78, and then you look at the indicator. It's the other way around. your indicator is giving bullish readings, and THEN you pick a price to enter. just my thoughts. it's my conclusion that traders and investors simply can't talk the same language. it's like ducks quacking to the hens.