As the site linked below shows simple averages like the 200 day moving average from can reveal some interesting information.
http://www.crossingwallstreet.com/archives/2014/10/yes-the-200-dma-works.html
We too don't pretend to be technicians but over the years have looked at a variety of indicators and the 200 DMA is one of them. There's always a lot of talk around markets about trends. One of the interesting ones to us here is the good news tends to engender more of the same and so does bad news.
Like it or otherwise, that has a metaphysical ring to it that many write off as being too simplistic in our view. But the idea of keeping things simple is paid much lip service but seldom followed. Solutions to complicated problems in order to be valid don't always have to be as complex as the problem.
Humans can get greedy and humans can panic. Several years ago we had the good fortune to hang out with an old time commodities trader for a while before he moved on to the next dimension. He was a successful trader, meaning at the end of his career he had won more than he lost.
Too many people in our view want to put a figure or what's known today as an outcome on that. But his trading skills and rules were about as straight forward and as simple as a declarative sentence.
t. man hatter
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