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You have only mentioned half truths. The old, reading the tape, works sometimes but
very seldom is consistent unless you are a floor trader and act immediately on what
you see ( and understand what you are looking at on the tape). If you understand
what the indicators are designed to tell you and act upon that information then you
will be much more successful. The problem is that people take indicators from
systems and books and use them blindly, without understanding the indicator and what
they were meant to do. Volume analysis works much better on long term time frames
utilizing accumulation and distrbution or very short time frames for short covering
or liquidation. Accummulation/distribution is not a one day, or one hour affair.
Earl Adamy wrote:
> I can't elaborate short of writing a book which I don't have time to do. There
> is excellent material already out there on price and volume analysis beginning
> with the classic tome "Technical Analysis of Stock Trends" (now in 6th edition)
> by Edwards and McGee. The reason most traders don't bother with this stuff is
> that it's so much easier to throw a bunch of indicators on a chart and let the
> computer do the work. The problem is that a bunch of indicators is all measuring
> the same thing while filtering out the real information.
>
> Earl
>
> -----Original Message-----
> From: John Manasco <manasco@xxxxxxxxxxxx>
> To: eadamy@xxxxxxxxxx <eadamy@xxxxxxxxxx>
> Cc: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Thursday, August 27, 1998 11:12 AM
> Subject: Re: Daytrading:Todd Mitchell
>
> >Earl
> >
> >Could you elaborate on this statement. I don't trade futures and my
> >stock system is pretty mechanical.
> >
> >John Manasco
> >
> >Earl Adamy wrote:
> >>
> >snip snip
> >
> >> If you want to day trade successfully, you need to learn to read the price
> action.
> >>
> >> Earl
> >>
> >>
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