|
|
 |
Question Of The Week - Archive |
|
|
|
|
|
| June 5, 2006 |
|
| Question: |
|
How much importance do you place on volume, open interest and other market data?
|
| Answer:
|
|
This question was sent in by Milind Karandikar (another client from India). To many`s surprise, I never use market information other than price action to create or validate any of my wave counts. Looking for non-priced-based data to confirm wave structure is analogous to a doctor "confirming" a patients condition by asking his mother how he feels instead of simply asking the patient how he feels. One answer is "right from the source" while the other is based on opinion or observation, which will be substantially clouded by how the observer feels. Obviously, asking the patient (the price action) how he feels will produce far more accurate information than asking the relatives (volume, open interest, stochastics, oscillators, moving averages, etc.). As a result, I recommend all wave analysis and assessment be done without the use of any technical "crutches."
|
|
|
|
Security & Privacy |