$BABA (Alibaba Group Holdings): Price Action & Technical Analysi"What, I asked myself, was the value of examining company reports, studying the industry outlook, the ratings, the price earnings ratio? The stock that saved me from disaster was one about which I knew nothing. I picked it for one reason only - it seemed to be rising."
Nicholas Darvas
To be fair, on his road to make 2 million dollars from trading stocks, Darvas ended up adopting a techno-fundamentalist approach.
However, firstly his fundamental approach was significantly less intricate than you might think ... he was not filtering his tradable stocks based on price to earnings, price to book or other classical fundamental metrics. Instead, he just tried to ascertain whether that company had an exciting, game-changing product that could spark the imagination of the masses or alike qualitative judgements.
Secondly, at the very least, Darvas was well aware that the core of his strategy was intimately reliant on volume and price analysis with his famous box theory.
Enron's accounting dept hand in hand with top notch auditing companies can deceive you. Accounting standards enable creative accountants to portray blurry pictures ... the price, on the other hand, cannot lie.
Even if there is a manipulation campaign behind the price's action, eventually, the price must trend from A to B, otherwise the manipulator does not get paid.
If the insiders are buying ... and trust me, they will know a lot more than you about that company, the price will have to show. When they buy, they leave a footprint. Learn how to track it!
Link in bio for 10 chart analysis with bullish and bearish scenarios.
