Bullshit

Salute to the manual chartist!

I started out plotting daily price bars on the chart each evening.

I'd like to say that 'those were the days' but that wouldn't be genuine of me.

 

I understand where you're coming from but, for what it's worth, I don't think John J. Murphy would agree with you.

In my own opinion, I think PA is the purest form of TA and would include S/R. All the other stuff is mostly just filler that arguably delegitimizes it. Just my 2¢.

You say tomato, I say tomahto. (Actually, I never say tomahto.)

 

So price data is TA but volume data isn't? Hmmm

 

Good Morning schizo,

How do you personally define and quantify statistical edge in your trading using TA, PA, etc. etc.?

 

EXACTLY right ;
because markets differ a lot.
Stainless steel + brass e seldom rust;
union made AUTO is eventually + usually headed for junk yard \scrap
Problem with excluding volume = no order =no trade with out any volume, any market
I ink my ma trendlines or have printer= she does ink it LOL

 

Most TA traders, if asked, would tell you everything about how you can trade the moving averages and the Stochastics, as well as the RSIs and all other squigglies under the sun. This is where you get in when it does this, and this is where you get out when it does that, blah, blah.

Now ask him, "Can you tell me how to trade without any of those squiggly lines?" Go on. See what he has to say. I bet you'll get a blank stare.

 

Yeah, you're probably right. But that's because someone left the door open and let all that other stuff in.

But I still think S/R is PA as it relates to breakouts (not that all breakouts are created equal.) And although I seldom look at volume, I still think it relates to PA.

In any event, more broadly, "Technical Analysis is the use of historical market data to predict future price movements. Using insights from market psychology, behavioral economics, and quantitative analysis, technical analysts aim to use past performance to predict future market behavior. The two most common forms of technical analysis are chart patterns and technical (statistical) indicators."

https://www.investopedia.com/terms/t/technical-analysis-of-stocks-and-trends.asp

For my own limited purposes, I think most indictors and patterns are not worth the bother.

 

Volume is probably the most useless indicator. The only sure thing is the elusive Gartley cipher.

 

Take the SPY for example; does a 1 minute Chart react similar to a Daily or Weekly Chart.

Then there's Patterns, individual Stocks seem to adhere to Patterns ie VCP a lot better than Indexes due to Volatility.