Dancing with the Trend

October 2016

Dancing with the Trend

WHY Are So Many Esoteric Things Attached to Technical Analysis II

by Greg Morris

This is the second in a series with the first few paragraphs the same as the first one.  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.  Read More 

Dancing with the Trend

WHY Support and Resistance Works

by Greg Morris

Support and resistance are mainstays in technical analysis; sadly, misused and abused by many.  The purpose of this article is to hopefully explain why they work when used properly.  I have to admit that when I first got interested in technical analysis and charting, I drew trendlines all over the place.  Once I began to fully understand the basic premise of technical analysis; that it is based upon price; price that is determined in the auction market by buyers and sellers.  I have discussed my thoughts on trendlines in an earlier article but after 45 years only Read More 

Dancing with the Trend

High Low Validation

by Greg Morris

This is an attempt to help validate new high and new low data and, to be honest, is still a “work in progress.”   If you consider the facts relating to new highs and new lows, you will see the necessity for this.  A new high means that the closing price reached a high that it had not seen in the last year (52 weeks).  Similarly, a new low is at a low not seen for at least a year.  Note: This makes them very different than Advances, Declines, Up Volume, and Down Volume, which are based upon the difference over the previous day.  These indicators try to identify Read More 

Dancing with the Trend

Scrambling to Safety

by Greg Morris

Once a bear market gets underway (nautical term), few will make adjustments to their portfolio. Usually it is well into the decline before most even begin to get concerned, and then they are convincing themselves that it is too late and they might sell right at the bottom.  That is certainly the siren song of most.  Market tops are extremely difficult to identify except in that wonderful world many live in called hindsight.  Especially after an extended bull market well into its 7th year. Chart A is the Nasdaq Composite with its top in March Read More