Using TA to pick tops and bottoms of 52-weeks

Discussion in 'Trading' started by athlonmank8, May 16, 2008.

  1. Here's another one I love.

    It's actually an oxymoron. There's VERY little TA up there (considering it's an all-time high). The resistance has "left the building" and the rest is pure support.

    I always laugh at all these guys screaming "shorting oil here" like they've got some crystal ball. You guys need help. Use some TA and go long like the rest of the crowd. It's impossible to fight momentum.

    You go short when shit breaks. Until then either go long, or sit on the sidelines for your short opportunities to open.
  2. Athlon... i agree with you for most part, but some have systems with super low win ratios that try to call tops/bottoms and have positive expectancy due to huge winners.

    Why the closed mind towards TA...

    Yes most people can't do it... but most doesn't mean all...
  3. With that said, those trades are taken differently. In addition either some type of fundamental divergence needs to take place OR a sure-fire technical top (there's a few signals to take).

    But 8/10 times using the "too high" method or "gut" is going to wipe people out.
  4. With regard to stocks some TA can be helpful in finding blowoff tops, which tend to signal regional highs.
  5. Joab


    I've made almost 70% of my money when stocks peak out and are set for snap backs.

    Just because you don't know how to do it doesn't mean it can't be done. :)

    Paul Tudor Jones
    Jesse Livermore
    George Soro's
    Joabs CROX trade :D :D :D

    Need I say more!
  6. Not so fast. No need to wait when" shit breaks". You can buy cheap puts for safe short play, if convinced that top is in place.
  7. lol Joab, you always have to be that guy. Besides MA you've been pretty damn good.

    Doing it with options is entirely different. That's typically the only vehicle I use when I do (hell, I encourage it).

    Another thing is that I know how to do it, and it works but there's a ton more risk. In fact, there's 1 way in the Ag market that is just as reliable as any other trade (and actually works in equities alright too).

    Joab.....I've said this in my other posts and I'm going to say it again.
    I'm not talking to you. You're gonna be the exception on all of these lol.
  8. yup :) You were ahead of me on that.