Jon, when I say a market is random I, sometimes. ask myself whether what I said is true. I believe that it is, as far as we, the small fry, are concerned. We do not have a clue as to what large blocks of money are going to do. The owners of all that money will be the deciders. We try to make a crust on the backs of their decisions. Our decisions are what are random about the markets.Hi guys - back from golf early (rained out halfway)
I was not intending to say that markets are random - you can't say that because a randomly generated chart looks like a market chart, therefore the market must be random.
The point was that TA patterns are not necessarily indicative of market progression since those same patterns can occur in randomly generated movement. It follows that TA should be seen in that context and not as the be all and end all. In my view it mere serves to point up places where you are prepared to make an assumption about future direction. It's what happens next that counts (limiting loss, taking adequate profit, finding momentum etc) and not the TA.