Re: Too Much Information
This is so true.
I concentrate on technical analysis which uses a derivative of one piece of data: price
Price is the current consensus of value amongst all market participants. It is the only really reliable piece of data available. It can't be massaged or manipulated like most other forms of data. (it can be manipulated to some degree, but this action can also be apparent in price action).
Markets tend to oscillate between greed and fear. These oscillations can be seen on hourly,daily, weekly, monthly charts.
Many TA also use too much information.They feel that the more indicators they use, the more accurate their trades will be. This is not usually the case however, as the more signals you rely upon, the greater the distance your analysis moves away from the pure data (price).
|