How important are basic trendline and price pattern analysis?

Discussion in 'Technical Analysis' started by Wach80, Jul 6, 2016.

  1. Wach80

    Wach80

    Another moto these price action practitioners say is that price action never lie because it doesnt try to predict the future and indicators try to predict the future..... another thing that doesnt make sense for me tbh because by looking at these price bars you are trying to predict what will happen... indicators try to do the exact same thing , i wonder why indicators are so underrated? i mean what they lack compared to looking at candle bars?
     
    #21     Jul 7, 2016
  2. I guess because the indicators are a deriviative of the price bars and so are 'later to the party' so to speak? I dunno.
    Not everyone thinks indicators are bad, though.
    Some of the 'apparently' better traders here claim to use indicators.
     
    #22     Jul 7, 2016
  3. Redneck

    Redneck

    PA is a language and set of behaviors

    Patterns / MAs / TLs / Channels / indicator readings / whatever.., - are simply the manifestation / result of that language being spoken..., behavior being exhibited / displayed

    Pretty straightforward

    Secret..., ultimate or otherwise - hardly

    RN
     
    #23     Jul 7, 2016
    Simples and K-Pia like this.
  4. I suppose an example of a 'price action' trade would be something lke ''A doji bar here at a previous resistance level which cuold now act as sujpport'' or something
     
    #24     Jul 7, 2016
  5. K-Pia

    K-Pia

    I, when I say Price Action, isn't related to things like Doji, Hammer ... Sorry for being deceitful. But I talk about the behavior of the price. How does it performs an advance, a decline. You got to feel the strength behind. It's no more than a differential btw buyers & sellers. Shooting stars, Doji & Co are an abstraction, caricatures of these forces. They are snapshots. But the dynamic transcend both abstraction and discretization. It's a low level understanding of the price. Livermore turns it this way :

    The course of the market at a given time does not necessarily prove me wrong. It is the character of the advance or of the decline that determines for me the correctness or the fallacy of my market position.
     
    Last edited: Jul 7, 2016
    #25     Jul 7, 2016
    p0box4 and Simples like this.
  6. Wach80

    Wach80

    this is what i call *too simple to understand*

    Ok lets see if i get it right , basically you are saying dont bet on a nontrend market? i have read that indicators and patterns are much stronger on a trend market but im not sure if thats what you are saying , also i guess you make a long analysis of price.
     
    #26     Jul 7, 2016
  7. TradeCat

    TradeCat

    Anybody who relies on one way to analyze the market will lose money at some point.
     
    #27     Jul 7, 2016
  8. Wach80

    Wach80

    Thanks for the answers so far

    Btw guys , how many trades does it take to forward test a strategy? i mean how long does it take to know your true winrate without variance affecting it.
     
    #28     Jul 7, 2016
  9. Redneck

    Redneck

    Does.., or does not -> the mkt / price constantly..., and continually evolve

    Do we ever..., or do we never -> know impending order flow

    Does.., or does not -> uncertainty reign supreme with regard to trading (and nearly all things when one understands uncertainty)

    ==================

    Win rate is overrated.., and frankly useless - for manual traders..., all be they systematic or spastic ((discretionary) -> discretionary that is..., in the sense most here take it to mean)


    =============

    A true strategy factors all the above in.., as does a trader with the proper mind set



    RN
     
    #29     Jul 7, 2016
    K-Pia likes this.
  10. Redneck

    Redneck


    On one hand you are correct..., then again - on the other you are incorrect


    For the record - all traders lose money

    Ones who lose the best..., lose the least.., and trade successfully

    RN
     
    #30     Jul 7, 2016