how do you guys pick tops and bottoms

Discussion in 'Trading' started by dazed101, Dec 7, 2006.

  1. dazed101


    hi, can you guys kindly share how to pick tops and bottoms fairly accurately using technical analysis? thanks
  2. :p Prepare for either a bloody nose, or a smelly finger.
  3. According to the latest book on TA that I am reading ("Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals"), the common indicators don't work:

    Not that any uncommon indicators are offered as an alternative. As the moderator suggested above, you are not likely to get any meaningful info from this thread.
  4. Trish


    You don't.
    Enter after conviction of direction.
    Plan a target only to show where to take your profits and don't be perfect about reaching the price number.
    Play 'between' the tops and bottoms. one knows the top or bottom....
  5. It's easy to pick precise top and bottom with hindsight. :D
  6. rcj


    Hey ... no problem picking. Here's whut i use.
    Works great!
  7. dazed101


    Nice, I'll look into this.:D

  8. Looks like according to him anyone that has used TA in the past 50 years is the luckies man alive because its all subjective BS. Thats what I got from looking at that page anyway.
  9. dinoman


    Its called confirmation!
  10. Since high and low are only relative (except for zero) I think a better question to ask is how to spot a reversal from a recent trend. Oscillator indicators are best for this. My favorite is RSI. When RSI goes above/below a threshold value I define, then I look for price to cross over a MA as a filter to signal a reversal.

    Therefore, I can never get the exact top or bottom of the recent trend. That's alright, because no one else can consistently get them either. I just have to keep my stops fairly close in case the previous trend continues.
    #10     Dec 8, 2006