TA redux

Discussion in 'Trading' started by stock_trad3r, Jul 31, 2007.

  1. A lot of people try to predict future movement of securities using TA. While TA does work in a few cases the problem is too many people overuse it when TA should be used sparingly.

    The are THREE key formations that are VERY reliable.

    H&S, Double Top, and Decending Triangle

    These are the only three formations you need to know.

    They work on a macro and micro scale. A double top that forms intraday is as reliable as one that takes a month to form.

    Also learn to read the candles

    A BIG RED candle that forms 15 minutes into the open is VERY bearish if the stock gaps up for example. For some reason, big green candles arent as relaible as red ones so I dont recommend using them for TA purposses.