Not all of the time , but as you brought it up, the Nymex boys are a different story altogether, and the retail dabbler would we well advised to stay clear! J_S
Here's another one that I haven't seen here yet, but it's actually mentioned at a stock exchange acronym site I came across. Would apply to longs (including inverse ETF's for shorts who don't want to use margin.) Buy on Breakout.
As you are probably aware, the "markets" are not all that they seem to be, but, if you extract CL, which as far as I know is the only market that is "truly" manipulated, then we can generalize to a degree. However, it is worth nothing, that the seasonality of commodities lend such markets to a certain type of analysis that is very repeatable and very predictable. A certain section of this analysis can be effectively applied to any market, as the underlying "movers" are people, it is just that people have different objectives and opinions, so, when something does not work out, you must get out and move on to the next trade without rattling your brain over matters that do not really matter! J_S
To add some reality to what we discussed, let the viewers make up their own minds by observation. J_S
Ok. I just prefer to study the CAUSE of price movement, rather than the EFFECT price itself. It makes no sense to me to study the effect to predict additional effect But to each his own Peace
The cause of why price moves (not counting short term imbalance) could require an incredible amount of research (depending on the instrument, of course), whereas the movement as a result of the cause would have less variables to deal with (IMO), especially if it is a repeating visual charting event over history. Why would cause be a factor for TA guys who couldn't care less about things like transportation indices, earnings reports, news alerts on stocks (yeah, I've been fucked by false news...especially during a short education in penny stocks), and so on...especially if they are trading 5 minute charts? Such causes would matter to investors, absolutely, but why should short term traders care if it shows up the same way time and again on a chart? Isn't TA the visual result of the cause (the representation of what the instrument did based on fundamentals...or better yet...what it's doing NOW because of the fundamentals or other forces (such as the fed:eek? TA lags (indicators), price bars show what's happening now as they form (minus latency), but that doesn't mean they're not going to show a probability of where something might go, based on where it's going right now.
You guys know it's possible to incorporate both fundamental AND technical analysis into your trading decisions right?