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greetings!
I recently read the Fall '98 issue of Omega's Research Magazine. In an
interview with Murray Ruggiero he alludes to "a handful of stuff that works"
(pg 24 prgh 4).
He also argues that the reason these analysis work is because they have a
sound fundamental and/or psychological reason they work. This makes sense to
me because I see it in the very basic RSI Divergence system I use to trade
options on equities.
For example price making a low (SLB) then makes a lower low (SLB) while
RSI7(SLB) does not confirm. The fundamental reason that this might work to
call reversals is to shake out stops placed a few ticks below the first SLB.
So, I believe I see the reason it works and therefor can guess as to when it
will not work and filter accordingly.
I bring the following questions to this board because I am still learning and
respect the opinions of this thread.
What are other fundamental and/or psychological reasons other systems work?
Do you have any insights into this "handful of stuff" that seems to work
through the decades?
If I am being to naive in asking these questions feel free to be direct.
Dave
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