Re: Wall Street = Casino. Minus Sum Game. Quote:
Originally Posted by Prawnsandwich Not sure I understand - you say that there was no prior TA sign whatsoever of the move, but then go on to say that TA enabled people to spot a possible move BEFORE it happened ? |
In this case, the driver was there, that got you LOOKING at the stock. Order flow told you when the move starter and when it was coming to an end way before it appeared on the chart. Quote:
Surely watching out for news stories such as this, keeping an eye on the premarket gainers or opening gap ups / large gainers with reference to the opening charts would be a standard part of a TA trader / day traders method ? You would not need to study or understand any aspect of the Fundamentals of the company to do this. You could just look at premarket volume, gainers, opening gainers etc.
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I would agree that this does give you potential movers for day trades.
On top of this, some understanding of the market is required. For instance, the role of the market maker/specialst and how he makes money, when he loses money and how and WHERE he may attempt to recoup those losses is important. This in my opinion is not TA. It is knowing your market.
I would also say that day trading has more to do with order flow and could be considered more technical - but it is NOT about trading chart setups.
TA generates book revenues, training revenues, web site hits, broker fees and unprofitable traders.
In fact, it stands to chance that even within this thread - most all of the defenders of 'it's all in the charts' are also not making money from it.
The concept of confluence is an amusing one. The more indicators saying the same thing, the more likely the move, right ? Well - considering that all of the indicators are based on the same set of data, surely them all indicating the same thing is to be expected. This doesn't make a prediction based on them any more likely to be correct.
__________________  The proof of the pudding is whether there is actually any pudding in the first place.
Last edited by DionysusToast; Jan 27, 2010 at 3:08am.
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