Perfect TA...

Quote from azmi:



my rationale regarding TA is simple..it isnt useless because since everyone is looking at the same charts as you, a support level will become a support level simply because everyone else seems to think this is the level where price will rebound...including the institutions
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this is a common misconception. TA is not uniform nor have even the patterns been quantifiably defined.

the reality is, everyone is looking at different charts. this is due to scaling differences, logarithimic v. non logarithmic, etc.


best wishes,
surfer
 
I hope the following block diagram will help you to understand the method.
<img src="http://understandmarket.com/images/Resize%20of%20Dia.gif">
 
TA is basically what most of us resort to because on the surface we have no other choice -- analagous to fantasy football league vs the actual NFL game. We make up conditions and indicators to somehow divine what the actual buyers and sellers that move the market trade off of. Imagine if we could (secretly) have the same access to information that those with the dollars and resources have -- I'd say we'd throw the charts and trendlines out the window fairly quickly, no?

You know at the very least, you are way behind from the start, but so long as there are others behind you . . . is that what these forums are for? :)
 
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