Markets: Are They Ever Changing or Do Proven Setups Last and Last.

Discussion in 'Professional Trading' started by Swan Noir, Feb 16, 2012.

  1. Although herd mentality and group psychology are prevalent in the market, you must realize how many people are actually in the market at a given time. Old strategies really only work in "old" market environments.

    As far as actual day to day setups go, I would say some have lasted but are far less profitable now. There is money to be made for a large firm who can stop hunt a fairly large trend line or what have you.
     
    #11     Feb 17, 2012
  2. NoDoji

    NoDoji

    There's a thread on ET that I've seen frequently when logging in, but never bothered reading until a few minutes ago. The first two posts say everything there is to say on the matter. Price action in an auction market never changes because it reflects herd mentality driven by ego and emotion (which has yet to have changed in recorded history), therefore the edge inherent in its patterns will last and last until the Dream of Planet (Toltec terminology) undergoes a fundamental change.

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=233879&perpage=10&pagenumber=1

     
    #12     Feb 17, 2012
  3. I believe both, some been working for years others have stopped during the test of times.
     
    #13     Feb 17, 2012

  4. BIIIIIIIINGO. So simple
     
    #14     Feb 18, 2012
  5. I wish I had said that.

    I think the phrase in brackets "even if only a slim majority" is what is frequently left out when people speak on this subject. Particularly at the inception of a move the incremental weight on one side of the scale versus the other can often seem inconsequential but given the trade position and prior price action can be of great consequence.

     
    #15     Feb 18, 2012
  6. SteveH

    SteveH

    I offer up this thread link as a replacement for TRO's panhandling efforts:

    http://www.forexfactory.com/showthread.php?t=340503

    It's the same basic system...minus TRO. ;-)
     
    #16     Feb 18, 2012