The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / tc2000


Subject:  Wordens Frequently Wrong Date:  8/5/2001  2:16 PM
Author:  NoLoadFund Number:  41 of 80

I like the TC2000 software, especially BOP, as it frequently tells me the real interest in a stock even if the price does not confirm it (e.g. strong BOP buying on a pullback). However, I would never use the Worden proprietary indicators alone.

Yet, the Wordens themselves seem to do exactly that. I've spent the last few weekends combing through the "Worden Personal Notes" and am shocked by how frequently they are wrong in their notes. Obviously, nobody can predict the future, so I'm not faulting the Wordens for that.

But their weakness seems to be that they are too focused on their own proprietary indicators and ignore such important things as the primary trend of a stock. In many instances, had they used Weinstein in conjunction with their own indicators, they (and others who rely solely on the proprietary indicators) would do a lot better.

Granted, you wouldn't get the absolute bottom on a turnaround stock ... nor the absolute top of a short stock, but watching the Weinstein 30 week MA - i.e. where price is located relative to MA .. and the trend of the MA - helps to substantially reduce your risk of jumping too soon on a lemon ... or shorting a skys-the-limit.

All of this probably goes without saying. I'm just surprised that the Wordens themselves might be guilty of too narrow a focus in their choice of technical indicators.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us