One of the important reasons to follow technical analysis is because so many traders follow it. That’s why the “Golden Cross” of the 50 day moving average crossing the 200 day moving average is important. Traders are watching it and using it to make decisions.
Here is another case of a clear explanation of how traders are looking at the head and shoulders pattern that the Dow is making and where it might lead.
Probably better than my simple minded view that since the market has had so much trouble rising, it is more likely to fall.
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.