Advice

Discussion in 'Trading' started by K-Pia, Jul 16, 2016.

  1. J_Smith

    J_Smith

    That is why you can have an advantage using charts, as trying to compete with these guys is really fruitless, for, they trade in microseconds with data that we will never have access to - we will always be late to the party!

    There are primarily 2 types of trading - momentum and mean reversion, no need to explain as self explanatory.

    To say that TA is useless, well, is not actually true - don't mind me saying it, I just wind up the TA guys - but as with any type of analysis, the key lies in understanding how to do it correctly and how to use the data to your advantage.

    TA is better suited to mean reversion trading.

    Momentum trading is best done with no TA, as you are not worried about price reverting to within a certain % of previous moves - just trying to catch a certain % of rapid price movements.

    The clever trader will use both, as when price reverts to the mean, it will not stay there indefinitely, and will start the cycle all over again!

    Never dismiss anything until you have tried it for yourself - you will never know what sex is like until you have it, no matter how many times you masturbate:D

    J_S
     
    #21     Jul 18, 2016
    VPhantom likes this.
  2. K-Pia

    K-Pia

    I am not saying TA is useless.
    But it has more downside than upside.
    Too distracting for me. Again, that's my opinion.
    The last prices + my memory & some tools are enough.
    Chart is just memory. I build my own mental chart.
    With only what matters for me. No distraction.
     
    #22     Jul 18, 2016
  3. J_Smith

    J_Smith


    Whatever works best, but like I said, never knock it till you try it!

    A chart is but a picture of historical price data, and sometimes a picture can indeed paint a thousand words - but, like all precious art pictures, it is not everyone who can see the true meaning of what is in the picture - for most who give it a passing glance, it is nothing but a load of vibrant colors, but, for the few who have studied art pictures in detail, the picture can tell a story as big as Harry Potter!

    One can not become an art connoisseur overnight, it takes years of sitting and looking at paintings - ask Mr Bean:D

    J_S
     
    #23     Jul 18, 2016
  4. Mysteron

    Mysteron

    A wise man once told me that when someone inflicts BS on you, then reply with similar BS and you'll beat them at their own game.

    Taking+the+piss.jpg
     
    #24     Jul 18, 2016
    J_Smith likes this.
  5. K-Pia

    K-Pia

    Please, feel free to piss all over with us.
    @Mysteron
     
    #25     Jul 18, 2016
  6. J_Smith

    J_Smith

    I don't think MN meant that in a bad way KP, but I am sure he can answer for himself!

    J_S
     
    #26     Jul 18, 2016
  7. K-Pia

    K-Pia

    No worry.
     
    #27     Jul 18, 2016
  8. J_Smith

    J_Smith

    Yes, happened me recently, so I know how you feel:D

    Who knows what is MN's mind, only MN of course!

    See OG's thread for my search results - interesting stuff, as using some of the TA for options trading makes perfect sense when you see it explained in detail with charts. I am not converted btw, just stating what I have seen:rolleyes:

    J_S
     
    #28     Jul 18, 2016
  9. J_Smith

    J_Smith

    Here is a TA setup based on one pdf that I found.

    In summary - exit long call positions when the 21ema line is taken out (orangey line) - not a signal to short (buy puts), but to get out and wait, as the long side is now suspect.

    Let's see what happens and if this TA actually helps us if we were in a long call trade, or if we have to re-enter if price drops and then swings back up above the 21 ema and 8 ema?

    J_S

    Screen Shot 07-19-16 at 12.22 AM.PNG

    SPY with volume

    Screen Shot 07-19-16 at 12.34 AM.PNG
     
    #29     Jul 18, 2016
  10. J_Smith

    J_Smith

    Btw KP. if you don't want me posting charts here, just say so, and I will post elsewhere, as I know you don't like charts:)

    J_S
     
    #30     Jul 18, 2016