Technicians believe that all the information they need about a stock can be found in its charts. Is it really so?
Is it really possible to take all the information you need about a stock from charts?
- Thread starter Lloyd W. Coutee
- Start date
your future can be forecasted by a skilled tea leaf reader.
If you are trading by support/resistance and chart patterns, you can get enough info from a chart.
For fundamentals you would require the yearly reports etc., and I guess some could trade off news also. Depends what your favourite is.
The only easy edge seems to be inside information, while the others require a lot of work to
get the probabilities in your favour.
For fundamentals you would require the yearly reports etc., and I guess some could trade off news also. Depends what your favourite is.
The only easy edge seems to be inside information, while the others require a lot of work to
get the probabilities in your favour.
You're mistaken...good technicians do not believe that. In contrast, those that are not good technicians...they may believe that all they need is a chart and nothing else.
With all the false information within the fundamentals these days, I can't see relying on that much at all, I often wonder if companies borrow money to keep dividends going as a fall in dividends would signal company not doing well, with other opportunities be better and would signal a fall in stock prices. So what I use to look at has changed a great deal since earnings are manipulated so much. Some times earnings look great and stock still falls down, so I stopped trying to figure out the "whys" and just trade what method gives for entries. I think overall economy should be taken into consideration, bad economy I want to be in dividend/optionable stocks that all require in day to day life, when economy is doing well branch out into dividend/optionable stocks that "we" can use throwaway monies/credit cards for capital appreciation, economy tanking either sell short non dividend/optionable stocks of " throwaway" companies we bought on rise.
Supposing that's true, trading would turn to be a super-easily profitable job.
Yes and no
I trade - I'm looking for exploitable movement / exploitable condition - right here..., right now
I don't care about the next 5 minutes..., tomorrow..., next week.., next month.., next year
What not on a chart I need knowledge of - is any report / announcement due out which could induce a "shock" to the instrument I'm trading
RN
I don't believe in purely technical analysis.