4 replies to this topic

[James Quillian]

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

[Rogerdodger]

I think you're on to something.

[ogm]

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.

[...]

Just because one is paranoid doesn't mean that they're not out to get one.

[LongJohn]

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 !!