Thanks for that Dan. Better safe than sorry. Chartists can tend to become too complicated. Keep it simple rules are best, support and resistance, volume and patterns. I use it because I like to see the bigger and smaller picture of where we are going. To me, it helps with targets (low and High) that many others use, especially big traders. As a result, these points quite often cause situations to occur at these points. With out it to me, would be like planning a trip without a map?? if that makes sence.
One important chart to be aware of is the VIX, a sentiment recorder. 2 days ago it was comparable to Feb 2009. IT had spiked outside bollinger bands, then retreated back inside. This break out to a significant high, then back again signals exhaustion of sellers, and creates a low risk entry. So yesterday with that in mind and LNC at the bottom of 2 support lines, made it a limited risk entry. These are what I wait with patience for, trying to pick the eyes out with less trades, but less risk. It takes patience, and one must shut the ego out.
Anyway mate, each to their own on their methods, I have developed my own through the school of hard knocks, after having emotions interfearing with wise decisions (like a pending sale etc etc which keeps one hanging on in hope). So for me, TA provides a regime to control those emotions and let me sleep at night. Perhaps one day the TA side may intrigue you more.
LNC Price at posting:
$2.99 Sentiment: Buy Disclosure: Held
