hali, lets for a moment agree that price is the only truth in the market and hence all that matters (and this is my belief and how I trade) .. one must then be very careful of TA as it is merely a mathematical derivative of price and actually take us away from price and as such the truth .. so less TA is better TA ..
hence my lazy system uses only 3 EMAs while momentum uses only price
So Simon lets use a practical example, lets take AGL.. how do you trade it currently by trading the price? Because its volatile and erratic and also everyday is a major gap between opening and closing prices..
that is not true - it has been trending beautifully for almost 2 years if you were short. I you are silly enough to think you can make money day trading it - then sure, not possible. But nobody can make money day trading stocks on the JSE. But simple mathematics, average true range and money management makes trading AGL a breeze.
That's what I am trying to figure out, how is this concept applied in a practical sense. If AGL is R100 how do you know its cheap/expensive based on what measuring standard? With technicals..yes it could be wrong but you have a trend etc that you can use to predict