Highly correlated instruments. There is no 'holy grail', of course, but making trading decisions based upon the behavior of highly correlated instruments is a very powerful and woefully under-utilized technique. And the best ones have never been mentioned here on ET. Ever.
I have already answered this question: http://www.elitetrader.com/vb/showthread.php?s=&threadid=210707&perpage=5&pagenumber=16
Interesting question and on the surface I would say yes because of the use of statistical data. I wouldn't want to trade using it though.
I say the use any data created by the act of trading (such as price or volume history) regardless of how the data is manipulated (statistics, probabilities, indicators, supply/demand levels, pivot points, spreadsheets, etc.) would be considered technical analysis. Any use of data not created by the act of trading would be considered fundamental analysis. This would include things such as news, rumors, politics, legislation, litigation, world events and weather.
This, along with both FA and TA - why not use everything at your disposal? And agreed, the best setups I've yet to see here on this site.
Actually I know of a guy that successfully trades the EUR/USD using manually calculated pivot points in an Excel spreadsheet. His name is Steve Beaumont and he is a contributing author over at fxstreet.com http://www.fxstreet.com/search/cont....aspx?id=965b2484-f26c-4dd1-92c1-cf95d3b12e94
I'd say so, but then everyone seems to have their own definitions, which can add to the confusion....
Actually, there is a third way! It's called "Mathematical Psychology". No TA, no FA just "hearding" and "flocking" and the methods that capture behavioral patterns without using prices or news. I have been doing this for the last 15 years and to me it is the only way to trade. Cheers, MAESTRO