hey guys, is TA all relative???

[jamesj188]

is each study or pattern all relative to one another and to certain conditions....
or is it best to just analyze things independently??

for example the general stock market is bullish, and Apples moving averages are down but its showing a bullish pennant pattern??????? What would this mean?

 

[eegozi]

is each study or pattern all relative to one another and to certain conditions....
or is it best to just analyze things independently??

for example the general stock market is bullish, and Apples moving averages are down but its showing a bullish pennant pattern??????? What would this mean?

In my opinion it is always best to take a trade the is in line with the general market or the sentiment of the market. Although there are times when a particular stock/etf may look bearish and the market is bullish I tend to shy away from these kinds of trades. I would advise AT MOST only risk a small (like 0.5%) of capital on a trade contrary to the market's prevailing trend. However, you should always look at each trade opportunity as an individual trade and separate from the market. Then look at it in line with the market and take the trades that look like they are the strongest in the same direction as the market.

So, in summary you need BOTH,...to look at them individually and then in relation to the market. Although you may be successfull it is harder to trade against the prevailing trend and I am trying to make things easy on myself.