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Many of us AT members have gone through thick and thin in our trading careers ever since we learned technical analysis. Some have lost trust in TA while others have remained faithful and still use what we have learned from the seminars.
The very few who stay close to the markets and use TA for their trades must have realized how effective TA is. Personally, having been using TA since 2006, I came to see clearly the various phases and cycles the market goes through. The chart does indeed give us a visual perspective of how markets move. It never lies and it always gives us good and reliable signals.
Last year, July 6, 2007, I was skeptical of the situation in the local markets and was giving out a warning sign in my trading blog to lighten up. True enough, the market started its descent mid-July to August. Many have been victimized by greed and hope and have been stuck with stocks bought at high prices. Nevertheless, if TA was reliable enough to give us selling signals, then we can use it as a buying signal as well.
Some of us may have been beaten badly with the market's downturn. However, the index currently is showing signs of a bottom and might as well give us a huge rally back to the 3000 levels. This is clearly seen with the RSI and MACD bullish divergence. Even more, the break of 2850 level will give us more assurance.
As faithful technicians we have gone through the various cycles of the markets. We have seen that the application of TA gives us a measure of damage aversion and assured profits. I personally never gave up trading even after being stuck because I see it works. My patience with TA has brought me to this day of opportunity, when stocks are starting to bottom out and giving us signals to buy.
Being patient allows us more room to learn. We improve our skills and we see more avenues for growth. Let's be patient disciples of TA and rule the markets!
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