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Times are tough

Discussion in 'Investing Strategies' started by JoSent, 10th Nov, 2011.

  1. JoSent

    JoSent New Member

    Joined:
    10th Nov, 2011
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    Location:
    Sydney, NSW
    Why doesn’t technical analysis work in the current market conditions? I think that the technical analysis simply is revealed now. Support and resistance levels are found everywhere you look. In a quiet market with smoothly rolling charts, technical analysis gives a false impression of credibility. On ATH - trading on financial news sentiment I found a system that totally ignores stock prices and short-term fluctuations yet performs outstanding.
     
  2. Tropo

    Tropo Well-Known Member

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    17th Aug, 2005
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    Location:
    NSW
    In volatile markets you use different tools and timeframes.
    Support and Resistance levels should be used in relation to time frame you are using.
    Do not forget that there is a big difference between trading stocks and futures (your link).
    Chart is the best tool, and is a reflection of the psychology of individual market players/participants not the information such us financial news etc... :cool:
     
  3. JoSent

    JoSent New Member

    Joined:
    10th Nov, 2011
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    Location:
    Sydney, NSW
    Maybe you're right that TA is best suited for individual stocks. Regarding index and such I still believe that the human brain is highly receptive to the current news flow and react to market movements in different ways depending of the sentiment.