Quote from fantastic4:
Charts are very valuable, but take alot of training and experience to read properly, however, are of course not a holy grail in trading. Charts hadn't signaled anything, only that we were nearing support, and might be setting up in the near future for either a bounce or a shorting oppurtunity.
I'll ditto that. Charts are simply math and trading has everything to do with math.
Every move outside the normal? (if one can say that) breathing or beta creates a situation where we must come back to some form of normality to trade, which is math be it bollinger, parabolic, stochastic, ma etc.
math gives day traders opportunities to enter and exit based upon the present supports and resistances which can and are broken all the time and trend lines for positon and swing traders where one has the ability to see visible the overall direction of the existing market and its conditions.
Make a plan, work the plan inside of your risk comfort level.
I personally believe we are not even close to a bottom until stocks like aapl, rimm, goog, amzn retrace a min. of 30 percent.
moves like we have had the last 2 days in goog, amzn rimm, aapl are evident situations of stock appreciation vs value via short squeezes.
shorting at every opportunity amzn, rimm, aapl? via options, stocks while playing the futures.
it is when you are a perma anything long or short you will get in trouble no. 1 but second miss out on 50 percent of opportunities.
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