Once he figures out that indicators are mostly a manipulation of price action to make it visually pleasing he'll be alright. I personally know a couple traders that use Stochastics crosses to earn a comfortable living. Nothing works all the time and money management and risk control have a lot to do with their success.
can't argue with that, but my thoughts were to catch a begining of a new trade... when i extrapolate your way of thinking, i find myself with only "blue sky breakouts"... i'm not saying that to retaliate, but just to explain how my way of thinking may be blocking my progress...
i'm guessing it's an unpopular opinion, yet it is deep. i've been managing portfolios and preached the same idea to my clients. (well, buy and hold) it IS a high % chance of win, no doubt, for longer terms. but, i feel there must be a way to "outsmart" this. working in caital markets (in Israel, if that matters) i know that proprietary traders must generate positive returns in shorter term (for their cut, and to keep their jobs) and they do succeed.
well, the RSI and MA's were just there, i didn't take them into account for that trade, they're part of my default setup.... And regarding backtesting - i only heard about this concept in this thread :S newb, as i said.
Indicators are not a "manipulation" but simply a derivative of price. Some find them useful to get an "at a glance" view into price action. If you find them useful, use them, if not don't. I use a double stochastic on my charts but I seriously doubt that anyone earns a "comfortable living" with sto crosses.
they showed a down trend. thought the pattern suggested bottom, because of the macd peaking up, after the recent disappointing earnings were priced in....
I greatly appreciate all input here, fellas, that's mind stimulating. Also, Dozu's and deaddog's discussion is illuminating.
holy crap. glad i respected my stop. earnings were just released: guessing they missed again the consensus buy the dip?
That was a close shave Strange how intraday chart of today looks bullish to me. $188 is a damn big plunge
that's like 80% of the drivers think they are better than average. you can look up the stats... over the long term, NOBODY beats the sp500, let alone the more robust QQQ, let alone if you had the foresight to hold only FAAMG. just not doable... the possibility of finding any edge in the zero sum game in the long run, is far far smaller than the QQQ components that throw in massive R&D dollars and gain productivity break thrus.