In a planned bull market where central banks and government surragates are charged with keeping prices moving higher, chart patterns and technical indicators do not mean what they used to.
For example, divergences that signify underlying weakness are bullish because lack of strength attracts intervention. Chart patterns that look top heavy are seldom resolved to the downside, again because weakness attracts an infusion of artificial demand.
James
Patterns And Divergences In A Planned Bull Market
Started by
James Quillian
, Jun 19 2007 10:55 PM
4 replies to this topic
#2
Posted 19 June 2007 - 11:04 PM
I think you're on to something.
"Nature's Failure to Function in a 'Predictable Way'... 500 years ago?"
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
#3
Posted 19 June 2007 - 11:10 PM
Well, in both cases the pattern did eventualy break down, even if for a short period of time.
Now take those patterns to the weekly/monthly charts. A breakdown on weekly chart would be painful.
#4
Posted 20 June 2007 - 12:40 AM
Just because one is paranoid doesn't mean that they're not out to get one.
#5
Posted 20 June 2007 - 09:39 AM
Does this de-value TA ? Should one just take the chart patterns with a grain of salt, or play the patterns from a contrarian view ?? Dang bureaucrats anyhow.....and I was just getting a grip on TA !!