Where are the future predictions coming from?

Discussion in 'Technical Analysis' started by Smart Money, Mar 14, 2009.

  1. Hey guys,

    Tonight I learned a little more about TA and I'm getting the hang of it (in back-testing). Now I just need time and practice.

    But I am digressing here. Here's what I'm wondering. You (and I) can use our TA skills to guess the general trend of a market...like...the S&P 500 for example.

    My question is simple, what exactly are we picking up on that will let us read the future like that? I mean, a "gee whiz" TA might be able to figure out that the S&P will tank in one to three days. What vibe is he picking up on? Human behavior? Market Capitulation? Finite elements of economics that have not yet been adequately identified?

    I think I have my brain wrapped around it. I believe I can predict where a market will be in the near future. But what am I glomming onto?