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Re: Indicators vs. Charts

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Chip Anderson wrote:
> I am troubled by recent posts on this list that imply that charts are
> superior to indicator analysis or vice-versa.  My strong belief is
> that _all_ aspects of TA can provide valuable pieces of information to
> those that are willing to look for them.  As you become familiar with
> the various techniques, you may choose to exclude certain types of
> analysis from your personal style and that's fine.  I am concerned
> though that some of the previous messages may prevent relative
> newcomers from thoroughly exploring the richness of MetaStock and
> thereby making their own informed choices.
> Chip
> Wired (still...) in Chapel Hill, NC


I have been taught that there are only two real things in our trading
world: price and volume.  Every thing else is  derivative.  An indicator
is just that: an attempt to indicate the direction of price.  Why not
learn to recognize one or two patterns that price is likely to take
before it goes up/down, and become a specialist in trading these
patterns. Recognize that the money is not in the indicator or the
pattern, it is in the trading.  (Oh, how many times have I been so right
on the market's move and lost!!  Lesson 101 in humility.)

I read with interest concerning the 80/20 overbought/oversold levels
being discussed with Stochastics.  I have had two workshop sessions
taught by George Lane who is credited with developing Stochastics, and
Mr. Lane says that DIVERGENCE is what to look for in Stochastics, then
wait for price confirmation.  Price is always the confirmation.

Not taking issue with your post.  Just trying to contribute.

Al Taglavore