U.S Stock Index Analysis

Discussion in 'Technical Analysis' started by Aaron Copland, Jan 21, 2009.

  1. Were in know mans land. No higher high, no lower low. We sit in this very wide range.

    Minor support and resistance levels are being violated, I just throw up my hands, it seems the market has no clear direction at his point.
     
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  2. False break out and false break down.
     
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  3. That's exactly right...using a price chart will thoroughly confuse those trying to use it to determine the future direction of price.

    Driving your car while looking in the rear view mirror will accomplish the same thing....Disaster.

    Look at the factors that are tellling of future price...causitive factors, which price (a resultant) is not.

    Once you know what causitive factors to analyze then and only then will you be on your way to knowing where the stock market is headed.

    PM
     
  4. I don't care were it's headed. All I care about is what is happening right now.
     

  5. In order to profit from directional trading you must determine where the market is headed. By carefully measuring the causitive factors that determine price action you will be gaining an edge that very few have available. And yes those causitive factors are occurring right now and need to be id in order to determine directional movements in the resulting price. Keep thinking about "Causitive" not price then you will be on the correct path to mastering all auction markets. THINK!
     
  6. See the volume at those breakouts in your chart, they give you answers - it was not what you would like to see, in any case if you place stop at S/R, your risk/reward would have been okay. With technical analysis or for that matter, with any other technique you cannot have 100% win rate.
     
  7. I feel the same ;) Market is changing constantly and the rules are changing also.
     
  8. ammo

    ammo

    AC ,we are in a quqgmire in which the only way out is most likely down,someone promised to change all that so we stopped selling while he was inaugurated,waiting to see if he really could,it will soon be apparent that positive thinking will not will this market up,and the selling will resume,that is the causitive reason the market has seemingly gone on lunch break