Everybody Is A Technician

Everybody is a technician these days. There is endless talk about the 200 day moving average and a potential head and shoulders top. At the end of the day most people just follow their gut switching between technical or fundamental excuses to justify following the herd.

I am aware that I am just a primate who has undergone a little more of the evolutionary process. That is why I always look at the same indicators so I am not tempted to follow the indicator of the week or the herd.

It is likely the market will need to close above this 200 day moving average in order to get everybody bullish again. It seems inevitable as too many people seem to be leaning short against that level.

4 comments:

Anonymous said...

I have found Following the charts actually works. We bounced off 1040 3 times didn't we.

Tsachy Mishal said...

I dont think there is anything wrong with somebody that always follows the charts and has a method. This article is for those who switch methods all the time in order to justify following their gut.

Tsachy Mishal said...

Did you buy at 1040? Did you short against the 200 day? What is and has been your position?

Anonymous said...

I use charts as a guide. I'm no professional chartologist. And I only trade a couple times a month.

No, I didn't buy at 1040.
Because the chart showed some support at 1040 doesn't mean it's definite.
I actually thought we might have gone thru it.
For me trading is more of a part time hobby.