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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Don Pueblo who wrote (6)	6/2/1999 2:02:00 AM
From: J.T.	Respond to of 19219

TLC, I will answer your Q's from last to first. I am familiar with Tom Dorsey and his Point & Figure Charting and I think he is first class. I'm not a "piffer", and have never read his book or taken his class, but would like to down the road. I have listened in on a conference call of his and chatted with him on SI in the past. He is simply very good at what he does. Not familiar with Thomas DeMark. Never heard of him. For me, in its most simplistic terms, support and resistances are nothing more than a stock's (or stock index or anything else you can trade for that matter) trading pattern over a specified period of time that helps you identify an existing trend until it "breaks out" (to the upside - resistance) or "breaks down" (to the downside - support). Simply imagine two parallel lines as a "band". The lower band and the upper band (support/resistance). Over time, a stock develps its own pattern and takes on a life of its own. its own blueprint or identification pattern. Beyond that, you can start getting more technical by looking at volume, moving averages (like 50 and 200 day moving average), and much more other convoluted terms that we can confuse ourselves with later. But for now, you get the brief overview. Once I get the TA set up via s/r (support/resistance) on the major indices, we can go forward from there. It may take several days to weeks before you get comfortable with it. So give it some time. TA is my "market religion" if you will, and it helps me to anticipate trend changes in the market by setting up s/r parameters. I become actively involved rather than reactive and waiting for charts or weekly data to confirm a trend that may already be in place 5 days ago. It doesn't work for everyone, and TA is not a panacea to making money in the market. As you know, there are many paths to making money, this path works best for me. Find what is most applicable for you and discard the rest. Hope this clarifies things a little. Best. J.T.