Re: Is This TA Or FA?
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The technique, that used to work and maybe still does (but that doesn't matter to this question) of buying (or shorting) a stock a few minutes after surprising earnings come out, (though still after the almost instantaneous price adjustment.) The idea being that only about 93% or so of the eventual move happens immediately, so there is a little more to pick up, on average, in the next week or two.
If you use that strategy is it TA or FA? It could be called FA because it is based on earnings. Except you aren't analyzing those earnings. You are using an historical fact about people's reactions to them. On the other hand can it be called TA if you are looking at more than price and volume type data?
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this is the type of thing i had in mind when i said "there are grey areas"
i honestly don't know. i would classify it as TA though as my old employer would never let an indicator like that into his system.
Barron
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