Pivot Point Calculator – Part One

Pivot point calculator...When it comes to making money in the market, I’m not proud. . . I’ll try any halfway logical method or system to generate profitable trades. That means I’ve read all the books on fundamentals, methods and technical systems. In fact, I even dabbled a bit in some interesting research on stock market and astrological relationships. Pivot point calculator...

It wasn’t long before I learned that if a system is to be profitable it must forecast what will happen in the future.

Pivot point calculator...That little sentence is the real key to understanding the stock market. If an index or approach is to work, it is because it has forecasting ability. In examining various market theories, my first thought is to study the basics of the system to see if the raw data has forecasting significance. If not, the method cannot work! Along the road to the discovery of my key to the stock market, I tried and studied many, ( pivot point calculator ) many different approaches. I’d like to share a few of my views on the more common systems for stock market trading and investing in an effort to help you separate the wheat from the chaff. Pivot point calculator...

Pivot Point Calculator – Part Two

At some Point in his life, every market participant, be he trader or investor, takes a look at charts and reads a few books on how to chart your way to wealth. I found the only people charting their way to wealth were the authors of the books! Try for the life of me, I could not find a workable charting program- pivot point calculator - formation, or whatever other mysterious forecasting element was supposed to exist on the charts. Pivot point calculator...

In today’s mail I received a flyer from one of t~e widely followed chart services. Their central advertising claim is that charts could help traders and investors because, as they said, “Charts are a natural for stock trading, since they give the full results of all supply/demand factors. They reflect insider buying and selling, “smart money” accumulation and distribution, Important news before it is published – in fact, everything that anybody knows or does.”

Pivot point calculator...This is the general view of those entrenched in the chartists’ camp. They feel charts, through various formations and configurations, reflect the true supply/ demand picture and thus have forecasting value. There are many books on charting and almost as many chart formations or patterns as there are stocks. But, by and large, most chartists look for a few basic chart patterns. Pivot point calculator...

Pivot Point Calculator – Part Three

Keep in mind that charting is based on the assumption that a chart correctly depicts the supply/demand battle. As such, charts enable one to spot developments that depict a bullish or bearish supply/demand pattern. Supposedly, these patterns repeat and forecast future market or stock action. It’s certainly a nice concept. Pivot point calculator...

But two things bother me [ pivot point calculator ] about the frayed-cuff chartists. . . First of all, I do not know of any chartists who are really very wealthy or doing exceptionally well in the market. To quote economist Paul Samuelson, ‘’They all have holes in their shoes.” Seriously. Of the thousands of people I know in the market. I cannot show you one chartist who is making money! Pivot point calculator...

More importantly, when I notice charts of other activity, such as rainfall in New York City, traffic deaths in Los Angeles, or the reproduction rate of Canadian Lynx, those same darned supply/demand patterns show up on the charts! Pivot point calculator...

This is incredible. . . when charting series of numbers that have no relationship to supply/demand (certainly we cannot argue there is a supply/demand relationship to the number of deaths in L.A. County) the same head and shoulders, wings, wedges and upper case Outer Mongolian breakouts occur. Pivot point calculator...

The continual re-occurrence of the same “supply/demand” patterns in non-supplyl demand phenomena must splash a good deal of cold water on any forecasting validity the chartists might try to conjure.

I suppose the validity of charts will be discussed for many years to come. There will even be some lucky chartist who attributes his luck to charts and writes a book or market letter about his charting system. But, as long as the same patterns appear in rainfall statistics and traffic death records, I’m going to have to remain a 1 non-believer. You are urged to do likewise. Pivot point calculator...

Pivot Point Calculator – Part Four

One of my attempts to make a killing in the market centered around the use of moving averages. Several authors and market letter writers had turned me on to the standard use of moving averages. I thought I’d give their methods a try. Pivot point calculator...

A moving average is simply an average of a series of numbers. The only difference is that the average changes each day as we add the new day’s information and subtract the data or information for the number of days ago for which we are running the average. Thus, in a 20 day average we add up all values for the last 20 days and divide by 20. To make this a “moving average” we wait until tomorrow’s close, add that figure to our sum and subtract the figure from 21 days ago and divide by twenty. As with any mathematical average, the resulting values represent a smoothing of the raw data. Pivot point calculator...

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