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

To: Christopher who wrote (10549)	6/6/1999 4:33:00 PM
From: CatLady	Read Replies (1) \| Respond to of 12039

Christopher, A number of points I'd like to comment on. 1. Individuals do not operate with the same constraints that institutions do. A fund running hundreds of millions of dollars cannot trade in and out of a stock the way an individual can. My trading of hundreds of shares isn't going to move a stock the way a fund trading tens of thousands of shares does. Also, historically most funds underperform market averages. So I'm not willing to take conclusions drawn from the study of how funds operate as necessarily relevant to what I do. 2. You claim to be a successful trader (I've no reason to doubt you. ) I would prefer to hear about techniques that you have found to be of value rather than theories that you've read about in a book but don't use yourself. Or at least, I ask that you make it clear which is which in your writing. I simply can't tell from your writing what is important to your style. I think that is what put some of the others off, that you seemed to be "lecturing" about specific techniques that you don't use yourself. 3. You say you look for price to give a signal, not an indicator. That is terminology that I have not heard used before. I am thinking that what you mean by this is price moving through a support or resistance level or breaking a trend line. I can't disagree with that notion, but it is a lot harder to test and validate than indicator type systems. And I agree with Richard on the importance of quantitative testing of TA ideas. I read lots of books to. But I don't necessarily accept everything I read as valid or relevant to what I do until I can test and verify for myself. 4. Re: "The study of TA is all about trend reversal." I say it is broader than that. I say it is about finding patterns in price movements. CL

To: Christopher who wrote (10549)	6/6/1999 7:00:00 PM
From: Terry Mitchell	Read Replies (1) \| Respond to of 12039

Christopher, you talk about the stock generating the buy signal. By this I understand you mean when the price moves through a trend line or MA. Would this also include support and resistance levels? I take it then you use RS to find the sectors and the stocks within those sectors then use trend lines and MA to signal your buys? In an earlier post you said that you do sector investing as opposed to timing. I normally have considered any kind of TA as some kind of market timing. Do I understand correctly that the definition of market timing as you are using it is when an indicator is used as the primary trigger for trading? Terry

To: Christopher who wrote (10549)	6/7/1999 9:43:00 AM
From: Dick Brown	Read Replies (2) \| Respond to of 12039

You made a comment that you could tell thu sector investing if the DOW was going up or down..This raises a red flag to me because I never thought of TA as a predictor of price action and I never will because I know better..What did you mean by this and what is the timeframe? Do you have a crystal ball?. Do your indicators account for the fact Greenspan may, out of the blue, say he is raising interest rates? I always thought of this game as getting the odds on your side and rule #1 is capital preservation. You can use any tool anyway you want as long as it helps YOU with the odds. It doesn't have to be your way or Richards way, as always IMO.. Dick.