Forum Archive Index - October 2003

[nickk@quicksilver.net.nz]

Greg 

That argument has been run before. 

What you are essentially saying  is that the 'chartists' are bigger than,  
and are beating, the market. 

Sometimes, when stocks break out of downtrends it is because of 
announcements which in turn can cause institutional buying (VCR:ASX a case 
in point).  That institutional buying can cause big upswings, quickly. 

Your self fulfilling prophecy would mean that every 'chartist' is tuned into 
the same stock waiting for the same trendline break.  The truth is that
many 'chartists' watch many sectors: FX, Options, Futures, Stocks, etc.  It 
is not feasible to say that because WHS (for example) has broken out of a 
downtrend then the 'chartists' are responsible for its pre-emptive uptrend.  
Most will be watching other stocks; might have no money; might decide that 
retailing isn't for them (notwithstanding what Woody says about not caring 
about the stock - a valid point); etc. 

A group of chartists together cannot impact on trends.  If I am wrong I am 
sure Woody or Snoopy will let me know.
Cheers 

Nk 

Maria Smith writes: 

> In the big debate there is one point which I believe has been overlooked as
> to why TA is successful. 
> 
> When a share breaks out of a decline this creates buying orders from all the
> TA advocates which can cause the share to rise markedly thereby proving to
> the TA people that their system works. 
> 
> Conversely when a share breaches its support level this creates a large
> number of sellers thus again proving that TA works. 
> 
> TA is self fulfilling 
> 
> Regards 
> 
> Greg Smith 
> 
> 
> ----------------------------------------------------------------------------
> To remove yourself from this list, please use the form at
> http://www.sharechat.co.nz/chat/forum/ 
> 
 

----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/