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the trend is up, market has bottomed.
- Thread starter lundy
- Start date
So what does this tell us about technical analysis? Has it failed yet this time? The bullish engulfing pattern on the nasdaq daily has been violated but the low of Oct 98' has not been. What IS the prevailing technical viewpoint anyway? Do trends and moving averages override support and oversold extremes? Obviously Lundy believes we've bottomed. Others will point to their Bollinger bands and trendlines and say we're going down. Some use their tools to predict, others to confirm. But when one confirms a trend, it still is to predict the future, however short term that is. Inertia confirmed, predicts.
And how does one choose which indicators to look at? Can we really be unbiased with our technical analysis or do we just use it to confirm our pet theory?
Sorry for the ramble but I feel that this is a time when tech analysis really comes to the forefront and I, like most of us I'm sure, question just how much credence to give it.
***********************************************
"Chaos is found in greatest abundance wherever order is being sought. It always defeats order, because it is better
organized."
- Terry Pratchett, Interesting Times
And how does one choose which indicators to look at? Can we really be unbiased with our technical analysis or do we just use it to confirm our pet theory?
Sorry for the ramble but I feel that this is a time when tech analysis really comes to the forefront and I, like most of us I'm sure, question just how much credence to give it.
***********************************************
"Chaos is found in greatest abundance wherever order is being sought. It always defeats order, because it is better
organized."
- Terry Pratchett, Interesting Times
Originally posted by lundy
please don't be impatient, this isn't a chatroom, or a phone conversation, it's a bulletin board for traders who post during their free time.
square 7.86 and you'll have approx 61.8
edit: it was supposed to be 78.6, I put 78.2 on the chart cause I just guessed the square root. Sorry if it's misleading.
Not impatient...just impatiently curious. ;]
Haven't seen before. 61.8 and 38.2 is what I see used virtually all the time.
Otherwise, if you take the square, why not take it again, and again, and again. Then you can arrive at virtually any retracement level you want to suit your purpose.
Anyways...
Originally posted by lundy
i have a gap up signal for tomorrow with no closure. Sometimes the opposite can happen, gap down with closure, but if it does, there will be no un-closure.
In other words, if there happened to be a gap down, the gap would immediately be closed and the market would continue up at a rapid pace.
If the market gaps up, it will not come back down to todays close.
Either way, this signal is bullish.
ps. whenever i say market, i mean NDX.
it's quite possible to predict something.
i know what they are. i'm saying the practical use of them in trading is probably no more reliable than any other common indicator..Originally posted by lundy
Fib numbers are absolute ratios that are found in the scientific study of the universe.
Its knowing the proper application that is the tricky part.