OTCQB:PSHIF - Post by User
Post by
metzgfon May 27, 2005 4:55pm
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Post# 9087404
TA
TAFollowing TA is like having a nose ring. If you are one of a thousand tethered to nose rings, when someone pulls, all one thousand will go forward. If you have 1000 people doing TA, all with somewhat similar charts, when they get a buy signal, most will buy. When this happens the price goes up, but only for a short time. The price doesn't go up because of the readings on the charts, the price goes up because of the reaction of the people following the charts. The same thing happens when the charts go down. How often do we see charts giving a very strong buy signal, and then a poor earnings report comes out and the price immediately drops. Charts do not predict what a stock will do. Charts predict what people watching charts will do. You can make money this way but, don't for a moment, think it is because the charts are predicting stocks.