a historical perspective part 1, page-9

DrWho2,

I believe you would have to ask an institutional investor. I am not one.

I am attempting to show (the troops) what a staff TA analyst might provide the strategic analyst, and the tactical analyst, which they in turn might show to the allocation committee, which they might act on or ignore, depending on the fund inflows/outflows, global political events, other markets, and a host of other factors.

TA is about predicting what the decisions of the committee(s) and other players were, so you can determine your own actions, in order to profit from their predetermined course, if you determined it correctly. It is simply one perspective of how the odds are stacked. Obviously there are some people who believe it gives them an edge, and there are others who believe it is all rubbish. It is not some sort of magic. It is similar in concept to the prize fighter who watches the neck of his opponent, knowing that in order to move his hands, he must first tense his neck muscles, and by watching which side tenses, he can predict which hand will move.

It is up to you whether you heed the signs or dismiss them.

The second thing I would say is the fundamental guys can only provide analysis when something is happening, and it is announced, and it changes the status quo. At the moment the only thing which is happening is price and volume, which is the domain of the TA people.

I am certain that the fundi guys on this thread will tell you about important stuff long before you would pick it up on your own, and will provide you with a range of analysis which is as good as you would get in the commercial world. It is up to you to be impartial, take it all in, make your own decisions, and be responsible for them. The fundi guys provide their opinions free, as a community service, and should be appreciated as such.

T91