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

To: Herc who wrote (10365)	5/28/1999 1:49:00 PM
From: Richard Estes	Respond to of 12039

"I can't comprehend the psychology of M.A.'s." That is possible. I don't look for support or resistance at MAs, just observe it. If it is self-fulfilling prophecies then it does reflect the psychology of the market doesn't it? If a portion of the buyers react to it, that is knowledge. You picked a straw man that very few experienced TA disciples (your word) would use as a buy/sell decision point. Just another insight to consider. Yes, it is all well and good.

To: Herc who wrote (10365)	5/28/1999 2:50:00 PM
From: CatLady	Read Replies (1) \| Respond to of 12039

"T.A. is supposed to help us understand the psychology of the mkt, and I can't comprehend the psychology of M.A.'s." I had nearly that same response when I first picked up a TA book years ago. It turned me off from TA for years, as it all seemed to be just a bunch of VooDoo nonsense. I now think of moving averages as a mathematical way of representing the trend of prices over time without the noise of daily up & downs. MA's and other indicators became useful for me when I saw them as just a tool without any mystical meaning, used to help you see the patterns in price movement. Something like a 40-day MA (just as an example) only becomes useful for me in looking at a chart, when I can look at data and say that when the price moves above that MA level it tends to denote a meaningful trend. After that, I want to use something like Metastock to test for the relationships that are to subtle for me to see easily by eyeball alone. Does this rambling make sense to anyone besides myself?