"Technical Analysis works the same on all timeframes and for all Assets". I find the above statement to be a Myth. T/A seems to work differently on different timeframes and for different Assets to me. Maybe I'm wrong. ie. Volume works better on longer timeframes than shorter ones, Stocks react differently to Indexes etc etc. inb4 T/A doesn't work at all.
"Technical Analysis works the same on all timeframes and for all Assets" - true and false T/A seems to work differently on different timeframes and for different Assets to me - true and false Volume works better on longer timeframes than shorter ones - true and false Stocks react differently to Indexes etc etc - true and false. inb4 T/A works and doesn't work So the next question is : How to improve the success rate from < 1% to say 30% Welcome to the real trading world. _________________________________
Before you go any further, can we get the jargons straight? Volume, in the strictest sense, ain't no T/A. It's just a cumulative count of all the shares or lots traded for that particular time period. On the other hand, indicators like Moving averages are T/A. So are oscillators like Stochastics and MACD. However, Support/Resistance and Trendlines are not T/A. They belong to Price action or simply P/A (although there are a few here who call it "Price action TA", whatever that means ). Sorry if I went overboard with needless formality, but it seems like everything is thrown under the T/A bus these days.
Volume is only good as corroboration of an inflection point, or a reversal. But it is way over-valued. I do think the biggest problem with TA is all the doofusseses on CNBC talking about it, but they never traded their own money with it. People now see it as a way to work from home. a home based business. Years back, TA was almost a secret society. Somebody would have to show you the rules. Edwards and Magee was there. That's about it.
Depends on what type of analysis. If we base our analysis on price action, patterns and price levels it leads to a bottomless pit of no statistical edge. Price is just digits on a chart moved back and forth by the volume of transactions. Price has no power to move anything. And yet, price is quoted as being King..is it? Can the movement of Price affect the movement of Time? Can the movement of Time affect the movement of Price? Which one has more affect over the other? The one which affects the other is the only one which can be used for analysis.
Hey Mike, you have to drop it down a step. Please follow me. The Price is not just the Price. No, it's the Price that buyer and seller agreed on. And it may have happened in multiple trades, unrelated traders. That's why the Volume is significant, but less than the price. *** Back when we used to create charts by hand (Swear to God), The price (high, low, close) was ALWAYS in ink. Trendlines were in pencil. That's why they are not surefire signals either. We had RSI(14) on the weekly charts (Mansfield Chart Service) That was a shopping list for swing traders in the office. *** A chart is just "footprints in the sand". It's the summation of the buy and sell decisions. Now we have all kinds of other tools. The Oscillators are mathematical derivatives of the price, price movement (MAs) and maybe volume (OBV). It's soocool to get all of that, in a little app like stockcharts. And I AM NOT shilling for them. Lots of other ways to get charts (but most have less of something) Just sayin'.