Discussion in 'Chit Chat' started by hairdresser, Jun 9, 2009.
I would like to hear thoughts on this.
Let an Xspurt help you. When you are on the wrong side of the trade it's overbought.
When you are on the right side of the trade it's strong.
The rightomoter indicator will help.
Overbought is usually an excuse for short and wrong.
Oversold - Long and praying for a bounce.
TA doesn't differ "Overbought" from "Strong", IMHO. I'd say no matter if a stock Overbought or Strong, it's better to wait for a correction. To recognize the end of the correction - that's what every trader wishes to know! And that's the right time to enter the market, not when you see a rally.
e.g. Overbought/Oversold at 5 minute can be a strong-trend at 1 hour.
I think it is that many traders were fearful and missed a great buying opp. because they couldn't pull the trigger.
Now are praying for a pullback and are shorting (strangely enough) so that they can buy when the market comes in.
Ironically, they will be too afraid to buy even at those levels.
Sad way to approach the world.
Hairdresser, What is your trading background? Are you in the business for the buy or sell side? Are you a retail broker? How long after this ramp up gets exhausted and the market inevitably turns lower do you disappear? I'd like you're thoughts on these questions.
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