Put these charts on your wall for reference the next time you think… Something is “oversold” or “at support” and has to go back up… Something is “overbought” and can’t go higher… It can’t go to 0… It is certain to default…
Interest rates can’t possibly go any lower… Interest rates can’t possibly go any higher… Housing prices only go up… Valuation is a good reason to short something…
You can call a bubble/top without the benefit of hindsight… Waiting for a correction will surely enable you to buy in at a lower price… Volatility can’t possibly go any higher… The Fed can prevent the stock market from going down…
Value investing is easy… Following pundits/gurus is an effective investment strategy… https://pensionpartners.com/put-these-charts-on-your-wall/
Yep "Oversold", "Overbought" are fools gold. The strongest trends stay pinned in OS/OB territory and last as long as they last.
That's something you have to discover for yourself. I use price action primarily and an oscillator to filter entries but not for entry signals.
Thanks. All TA are lagging and predictions seemed to be just like extrapolation, sometimes they work but most time they don't. Perhaps the key is to figure out when they do and when they don't. I actually started to study charts based on some coaching from some of you. I have been staring at them real time lately, but so far , especially the intraday kind. However, I am beginning to understand some patterns, as they seemed to reflect human behaviors. Regards,