Quote from ProfLogic:
Or to expand . . .
TA limitations are sometimes self inflicted. When analyzing a variable environment, expect varying results. When you analyze a fixed environment, expect stable results.
High volatility, news events or some idiot potentially selling a billion shares of PG won't trump a fixed environment but it WILL drive a variable environment crazy. The cat on the keyboard is the exception though. That is why you ship the cat off to a neighbor with a big dog if it messes with your trading.
It is the responsibility of any practitioner to be fully aware of all of the intricacies and idiosyncrasies in using TA but that isn't the case. Traders, for the most part, become familiar with some of the rules, try to play the game and lose because they didn't bother to learn ALL of the rules.
Then, even worse, those traders start threads, recite riddles and try to cover over the fact they never had the patience to learn all of the rules in the first place. Then, because misery loves company, people migrate to these posters because they think they know something they don't. They do, they know they didn't learn all of the rules. They ridicule those they took the vast amount of time needed to break the environment down to learn all of the rules as well.
Bottom line guys . . . if you lay your charts out randomly, you will get random results. If you take the time to learn how to set up your charts, eliminating the random nature of their creation, then when you create a chart, WHATEVER analysis you apply to it will be hugely more accurate and hugely more consistent.
