Must I Be The Voice of Reason In All This Giddiness?

Quote from NoProblem:

I think the PPT is real, but to me, it doesn't really matter "why" the market gets bought or sold or "who" is doing it - but, when I'm on the wrong side, I am always in a hurry to just get the hell out completely until the frenzy subsides.

T/A is just a tool for entries and exits, and lines on a chart are, well, only lines on a chart and bear market rallies are always extreme - a sure sign that we are still in a bear market.

Steve
More...

Thanks for the response. That is what I kind of figured - chart well, but follow the market direction closely and ignore the chart if the market is going opposite of where you are :D
 
Quote from makloda:

When the SP500 gained 50 points from 100 to 150 in the 80s you think that carries the same 'weight' as the 50 point gain from 1500 to 1550 in 2000?

Not using a log chart distorts the picture on a financial time series.
More...

Years ago as a Physics undergrad I had the importance of log charts when working wide data ranges drilled into my noggin, one of the few facts that remains of my oh-so-brief science career (along with the importance of using the right units in calculations). I would assume that folks who do not have a science or engineering background of some sort would have a tough time becoming comfortable with log charts.
 
Quote from gastropod:

Thanks for the response. That is what I kind of figured - chart well, but follow the market direction closely and ignore the chart if the market is going opposite of where you are :D
More...


Don't ignore the chart, rather strive to consider the whole picture and trade accordingly, using the chart as a main ingredient of the whole picture.

Take Friday's ramp job for instance - once again, the big move happened in the last hour............

1) Because the last hour or so has had big moves for the last few months, traders should be expecting big moves in the last hour.

2) As the last hour approached, we were forming an intraday double bottom right at recent support ~ Thursday's lows.

3) Failing to make new lows = possible reversal coming.

4) News release gets bought, at support, at 3:00.



Steve
 

Attachments

You must log in or register to reply here.
Back
Top