Zeev's Turnips Patch-No Politics (ZEEV)

[jeffsaxx]

IMO channel lines drawn on chart patterns can be highly misleading. The activities of MM's and specialists to move stocks to accommodate block trading pressures of institutional clients can create artificial lows or highs which define a channel line unrelated to the trading activity in the stock. The channel line drawn from top to top or bottom to bottom creates a RATE of ascent or descent so to speak dependant upon the extremes of MM or specialist activity. For example, why should the channel line for a given stock show a steep decline just beacause a fund liquidated on Friday and the stock was down 1 1/2 points at the intraday low when otherwise it would have been down only 1/2 point which was the close at day end? Or vice versa on a day when a fund loads up? I think to some extent drawing channel lines does work because of the "crowd" efect of chartists who are following the channel lines as a general rule of thumb regardless of the aberrations.
I am not a technician like several others on this board, but I do believe there are other technical indicators which are far more reliable than simple channel lines. But in the end I think day trading and swing trading comes down to experience and "feel" (not voodoo) which somewhat like an exquisite art form is successfully practiced by Zeev and a very few select others.
That is entirely apart from my option trading (lately very spotty) which is a different form of speculation based on high reward to risk ratios.