Just got the initial TW course earlier this month and have begun paper trading.
After comparing many of the charts in the Investolator against the US Chartbook (and the BigCharts online service) it seems that many of the Investorator diagrams are distorted by lengthening the time lines to cause each box to be a rectangle. Needless to day this gives quite a different picture (and it supports the descriptive text in the Investolator) than shown in the chart book - or online.
One of my main concerns with this methodology is that it is very easy to distort a graph to support your position on any topic - and this seems to be a good case in point. I have a lot of experience in using PowerPoint to this end.
I'm not being overly critical here, just voicing a concern born out of being a novice in this. I called the TW support line, but did not get a good explaination for the differences in the charts.
Take a look at the May Investolator and OUTL. If you look in the chart book it shows a very steep downtrend and a break out, rather than the base as shown in the Investolator. Very different picture and the chart book graph does not support the rational talked about in the Investolator.
Comments ??
...Warren
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Hi Warren. Your very right about the fact that charts can be distorted to gain a different perspective of particular formations. I've noticed that even if I use exclusively the Big Chart online service, I can gain a different perspective by viewing a monthly chart as oppossed to a daily chart. Additionally, looking at a closer time frame of a formation, say, a two month chart, as opposed to the two year chart, gives you further distortions as to the validity of a particular formation.
Ted Warren teaches us methods (as opposed to an actual "system") to use in the markets. As traders we will all see something a little different and even if we enter the same stock, we will probably trade it differently concerning entries and exits. As with any method, subjectivity comes very much into play. It is just fine if The Investolator shows a particular formation and you, as a trader, do not see it quite the same and choose not to trade it. Over the specific chart formations, I think all course members should be able to agree on the course material concerning a stock's cyclical action.
Take care Warren.
Lester.
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I agree with you, but you missed my point. I was refering to a distortion of making the X axis (Time line) boxes longer (rectangle) over THE SAME PERIOD OF TIME and thereby distorting the look of a chart.
This is one of the great tools that can be used to make a point one way or the other from the same graph.
Please again, I'm not being critical but only concerned on how to read all the different "looks" of the same information.
Best,
...Warren
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Yes, if the x axis is pulled to give the chart a "stretched look", you could gain a different perspective and perhaps use it to justify a position as you have said. I think for you and I, knowing that charts can be stretched as such, we are less likely to take the visual appearance at face value and look a little deeper to make our decision.
Lester.
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Tony, what do you think about this interesting comment by future Ted Head, Warren? He raises a thought provoking statement. He's right about the time frame being shorter or longer on some charts or services. Your comments please. Thanks.
John B
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Tony,
Read the first message posted by WKulik titled Investolator Distortions and then read all the ones pertaining to it. It's about looking at charts with the time frame being an issue. Thanks and how are things in the markets you are in?
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Hello John,I have seen these chart distortions also,but am not to concerned about them.What i am concerned about is the completion of the accumulation cycle and price action.Using my chart trendlines i am going to wait for the buy signal.So a distortion on a chart wouldn't bother me.Using the TW method i have made 16 investments in the market.I Have some very good TW stocks with strong fundamentals.Long term. Hope to double the amount by Jan.Am also looking to some penny stocks using the TW method, only short term,2 mo.-1year.There is some good info in Van Tharp book refered by Lester.Trade your way to Financial Freedom.I hope things are going well for you. Tony
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Yes, I am starting to do it. I have 3 out of 4 stock using TW, that have sunk but I will wait until the turnaround. Then, buy more of other TW stocks. I may try the penny stocks using TW. Good luck with all your stocks and may they all rise, unless you're short!
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