they are magic numbers...the universe vibrates to their frequency...blah, blah, blah! Put them on a spreadsheet and burn up your processor
So what does this tell us about technical analysis? Has it failed yet this time? The bullish engulfing pattern on the nasdaq daily has been violated but the low of Oct 98' has not been. What IS the prevailing technical viewpoint anyway? Do trends and moving averages override support and oversold extremes? Obviously Lundy believes we've bottomed. Others will point to their Bollinger bands and trendlines and say we're going down. Some use their tools to predict, others to confirm. But when one confirms a trend, it still is to predict the future, however short term that is. Inertia confirmed, predicts. And how does one choose which indicators to look at? Can we really be unbiased with our technical analysis or do we just use it to confirm our pet theory? Sorry for the ramble but I feel that this is a time when tech analysis really comes to the forefront and I, like most of us I'm sure, question just how much credence to give it. *********************************************** "Chaos is found in greatest abundance wherever order is being sought. It always defeats order, because it is better organized." - Terry Pratchett, Interesting Times
Not impatient...just impatiently curious. ;] Haven't seen before. 61.8 and 38.2 is what I see used virtually all the time. Otherwise, if you take the square, why not take it again, and again, and again. Then you can arrive at virtually any retracement level you want to suit your purpose. Anyways...
i know what they are. i'm saying the practical use of them in trading is probably no more reliable than any other common indicator..
I'm saying that in order to practically apply them for trading, you must use the correct application.