Dancing with the Trend

WHY Are So Many Esoteric Things Attached to Technical Analysis?

by Greg Morris

I am not sure why there are so many vague and totally subjective analysis techniques that have become part of technical analysis.  Probably because the main stream Wall Street and their marketing department, academic finance, does not follow technical analysis like they do the accepted rubbish from the ivory towers.  Early in this WHY series I tried to be convincing that technical analysis’ basic premise is the analysis of price; price that is determined in the auction marketplace. As I have stated earlier (many times in fact) I believe technical Read More 

Dancing with the Trend

Overbought / Oversold

by Greg Morris

Overbought / Oversold – These terms have got to be the most over-used terms when talking about the markets.  Overbought refers to the time in which the prices have risen to a level that seems as if they cannot go any higher.  Oversold is the opposite, prices have dropped to a point it seems as they cannot go any lower.  While this sounds simple enough, the term is usually based upon someone’s personal observation of price levels and not on sound analysis. If I had to pick a concept in technical analysis that is so misunderstood, abused, and Read More