123Tom's TA study group

[Citrati]

Tom, IMO the pattern recognition and volume are very much still relevant.
Understanding and recognizing accumulation and distribution IMO are a big part of proper timing as is strength of supply and demand.
I think his method for comparing a stock to it's industry or market with vertical lines really makes relative strength pop out in determining if the stock is weaker or stronger than its sector.
Seeing when the big boys are unloading or building positions is also huge IMO.

Any ideas that help me spot these events to me is a huge plus. "Divergences between volume and price often signal a change in the direction of a price trend. For example, when there are several high-volume (large effort) but narrow-range price bars after a substantial rally, with the price failing to make a new high (little or no result), this suggests that big interests are unloading shares in anticipation of a change in trend."

I fully intend to make a deeper study of volume and price correlation patterns.
Will I use everything? I doubt it. I am an old dog with biases. The point and figure aspect I don't know that I will spend the time.

I posted the article because of a fellow trader who has been using this method since the late 60's and his accuracy on individual stocks and market turns is just phenomenal to me. His accuracy is before the fact and not some backward look and marked chart. Once in a while his calls do get trumped by news but not often. His trading of HMNY was amazing to me and how he held when everyone was getting out through fear on the way up. His accuracy on the pullbacks was equally amazing. JMO

I also think there is much that can help me be more consistently accurate within my own system.
For sure, I need to stick to a checklist for buying and selling. By that, I mean seeing and evaluating all the steps instead of getting excited/emotional when I see a few and pulling the trigger without the whole picture.

I also noticed that if you eliminate the http:// and enter just that address in the browser it works every time for me.
Not for everyone for sure. Just showing ideas I find that have potential for others as well as me.


http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:the_wyckoff_method


Green Trades.