There’s the story of a large commodities broker, speaking with one of his new analyst charting pork bellies. The analyst after much work and toil, brought in his charts to the boss, “ That’s it the market just hit bottom!”
“Are you sure?” the old trader questioned.
“Yes Sir, that’s the bottom the market can’t go any lower.”
“Great!” Said the Boss as he picked up the phone and called in a very large sell order for pork bellies sending the market lower.
Price can and will do what ever it wants, and in doing so it will always be right.
If we look at a chart, a candle, or anything on the chart in any relation to any other point or figure on the chart… doh! It’s TA
Zoran is correct in that the fallacy in TA is its predictions, if the trader views it in that light and continually bets the farm hinging only on those predictions.
Technical analysis tells a unique story, one that has an ever-changing ending, if a person is able to read it. Each new high, low ect… tells a sentence, a page, a chapter in the story line. We are never sure how the story will end, but as we read we get a feeling for the drama, the action taking place at the moment. Normally we get a foreshadowing of upcoming events, hints before the climax.
Is the market trending? Long or Short or Consolidation? Off-hour sweeping? And a host of other things that draw out the battle ground for us, from there we can deduce when and where to engage the market.
The analysis itself is not bad, it's necessary..... it’s when we are like the pork belly analyst, and draw a concrete line in the sand, stating the market WILL do this, then we are in trouble,………… there’s pages full of those ideas and threads here on FF, and a market waiting to devour their stops or worse.
Fwiw…. My $.02
“Are you sure?” the old trader questioned.
“Yes Sir, that’s the bottom the market can’t go any lower.”
“Great!” Said the Boss as he picked up the phone and called in a very large sell order for pork bellies sending the market lower.
Price can and will do what ever it wants, and in doing so it will always be right.
If we look at a chart, a candle, or anything on the chart in any relation to any other point or figure on the chart… doh! It’s TA
Zoran is correct in that the fallacy in TA is its predictions, if the trader views it in that light and continually bets the farm hinging only on those predictions.
Technical analysis tells a unique story, one that has an ever-changing ending, if a person is able to read it. Each new high, low ect… tells a sentence, a page, a chapter in the story line. We are never sure how the story will end, but as we read we get a feeling for the drama, the action taking place at the moment. Normally we get a foreshadowing of upcoming events, hints before the climax.
Is the market trending? Long or Short or Consolidation? Off-hour sweeping? And a host of other things that draw out the battle ground for us, from there we can deduce when and where to engage the market.
The analysis itself is not bad, it's necessary..... it’s when we are like the pork belly analyst, and draw a concrete line in the sand, stating the market WILL do this, then we are in trouble,………… there’s pages full of those ideas and threads here on FF, and a market waiting to devour their stops or worse.
Fwiw…. My $.02
, and ps2 getting boring ... need to buy ps3 
, maybe if I get some money in my fun account 
practice practice and practice.
