Replies to post #61397 on Zeev's Turnips Patch-No Politics (ZEEV)

[gottfried]

augie, maybe you were kidding but in case you weren't here is the Max Pain [tm] explanation from the man who invented it http://www.ez-pnf.com/maxpain.htm

Gottfried

[leekramer]

Hi Augie: Now that I have jettisoned Max Pain...sounds like the answer to a Jeopardy question. The category is 'Famous Hollywood Names' and Alex says, "For $1,000, name the actor born in Brooklyn in 1943 as Sy Gezundt?" One of the contestants furiously hits the buzzer and says "Max Pain." Anyway, I've tried RSI and Stochastics and the whacky (to me) Bollinger Bands. Now I understand that there are traders who are able to use these indicators successfully. But I am not in that group. Some fellow long ago said, and I paraphrase here, "Give me a lever, a solid place to stand and I can move the world." Well, I spent some time with the late John Magee, co-author of "Technical Analysis of Stock Trends" and I came away with the notion, "Give me a chart, with volume, and I can read it." For me, it works.