Quote:
Originally Posted by mrbaseball
A lot of people say TA is 100% BS but if you define it like I do, simply a visual representation of the market everybody uses technical analysis. I stick to the basics with support, resistance, trends, breakouts and mean reversion. Putting all of the pieces together can give you some decent risk/reward scenarios.
i would add i'm a fan of everything you mentioned. the support/resistance is something i hadn't mentioned in my earlier posts.
i like technical analysis stuff that can be easily quantified and tested.... a friend of mine was heavily into fibannaci sp? and barfoulian reversals. i just think when you get too deep into subjective TA it can become gobblygook. and often these people show one instance of it working.
i was also interested in gil morales and that whole IBD momentum crowd..... they looked into pivot pockets (name?). basically wait for consolidation of hot stocks to go back in. i think the theory is that if Netflix spikes, institutions will lay off buying it for awhile... also, lots of work by morales and his cohorts on bottoming processes