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Well,
It's Friday. My normal day of reflection on the past week.....
Thought I would talk about trading techniques in general.
Many technicians subscribe to the works of Gann, Elliot, Fibonacci and
many other ratio sets to define where the market might be going, and/
or turning.
A word of warning to the new trader:
Bar charts, and many charting derivitaves are a numerical representation
of the markets. As such, they tend to lend themselves very well to the
application of ratio sets that are given enough leeway in their
predictions to APPEAR to be valid.
It is my contention that one could readily apply ANY mathematical
ratio to price charts, and have it SEEM to work.
To prove my hypothesis, I went to the local dime store, and bought
a rubber duck. I then measured the duck's head and the duck's body
and from that, developed a ratio set. View the attached gif file
to see the results. Amazing isn't it. That duck calls turning
points pretty well.
The moral of this story is : Knowing where a market MIGHT be turning
( + / - the usual 3 days most turning point gurus give
themselves, and + / - the usual 3 or 4 "excuse" days that are
also usually thrown into the bargain) isn't enough to trade on.
While the above mentioned methodologies do have their place, the
good trader always looks for confirming indicators, and a safe way
to enter the market.
In the trading markets of the world, being semi-right is the same as
being semi-dead........
Walt Downs
CIS Trading
Attachment Converted: "c:\eudora\attach\duck.gif"
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