guilium, my position is that the technical analysis procedure is flawed and has very little relative effect in trading the markets. I think there may be of some use if you are looking for a possible entry point into a GOOD STOCK. But trying to trade and flip poor companies because the RSI is telling you this and Money Flow is telling you that, is complete hooey. You might as well be in a Vegas casino playing baccarat.
There are people who have good runs with technical analysis during bull markets. But you would have the same gains (if not more) by just buying and holding during bull markets. When the markets trend sideways TA gets absolutely slaughtered, and you have absolutely NO IDEA that it's trending sideways until AFTER the fact. In the long-run, they won't last. Just tell me how many billionaire technical analysis traders there are? I can name more than a dozen billionaire investors that "buy and hold" good companies.
You want to talk about Alcoa? Look at their stockcharts.com chart for the past 3 years. The Accum/Distr level peaks in the 4th quarter of 2004 at $31.00 were substantially higher than it was during the peaks at $36.00 in April 2006 and January 2007
What the hell does that say? Absolutely nothing. You're playing with random numbers that are completely useless in forecasting the future stock trend.
For every example you can show me of Accumulation/Distribution divergance vs stock price working, I can show you examples where it completely failed. I'm sure you'll find tons of examples. You've seem them in the technical analysis books you've purchased and the websites they've been published on. Young TA'ers have usually only seen examples of where its work, not where it's failed equally as often.
You want to play?
