Nothing Beats Price Action, Everything Else is Derivative

Discussion in 'Trading' started by MandelbrotSet, May 13, 2008.

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  1. I don't know Jack Hershey from Adam but I have found that all of the above are spot on.
     
    #71     May 14, 2008
  2. I think the above prattle, was roughly equivalent to my earlier response: "Actually, Jack would be trying to swing at the ball with golf clubs tied to ropes and pulleys and counterweights and feathers and counter-counter weights and block&tackle and levers and a level and talcum powder and granite shoes with iron underwear and binoculars and GPS and radar guidance systems and gunsights and ... ... By the time he was setup, he would not be able to find the ball."

    When it comes to anything, Jack makes it 20 times harder than necessary. Why is this so hard for him to see?
     
    #72     May 14, 2008
  3. piezoe

    piezoe

    Thanks, Jack. Your decision is appreciated.:D
     
    #73     May 14, 2008
  4. So waht are u going to do? Take all your indicators and go home? What a baby.
     
    #74     May 14, 2008
  5. With that said....I'm sure there is a select few (probably intelligent people) who use indicators for pure "feel".

    Strength is key and can be used for probabilities I suppose. Hence the 20%.

    Most people use them for entries and exits....those people are completely fucked

    Think of "hard" and "soft" TA
     
    #75     May 14, 2008
  6. lol :) That's Jesse Livermore thinkin right there.

    Doesn't work on the roulette table though. I've tried it haha.
     
    #76     May 14, 2008
  7. I think that the part about price action in the context of technical analysis is a very important point.
     
    #77     May 14, 2008
  8. Thank you, all I ask.

    NN
     
    #78     May 14, 2008
  9. The truth is, we learn to see the same things using different tools.

    What the dome guys identify and confirm as support and resistance via "walls", etc are likewise visually clear on a bar chart. At the exact-same moment in time, chart readers have seen a failure pattern of some sort and reacted to it accordingly.

    When MP volume levels are hit AND price action reverses, the volume players react by taking a trade. At the exact-same moment in time, chart readers have seen a failure pattern of some sort and reacted to it accordingly.

    When oscillator levels reach extremes or show divergence AND price action reverses, oscillator traders respond by taking a trade. At the exact-same moment in time, chart readers have seen a reversal pattern of some sort and reacted to it accordingly.

    I find that traders learn to make the best decisions using least amount of data input possible. I see traders making more money in less time using little to nothing more than price bar behavior on a chart. That's not to say the same traders wouldn't succeed or fail accordingly if they add more and complicate the picture.

    But, less is more in our profession. "One more" bit of information usually leads to twenty data points and paralysis in the end. Superior intellect does not make superior trading results. Simple decisions made correctly and timely make money. I myself make the fewest trading mistakes using price behavior alone. Fewer mistakes = more money made / less money lost.

    Every trader makes mistakes, zero exceptions. That's part of our profession as gamblers. Exiting those mistakes and entering the next favorable decision is critical to success. The fewer data points of decision necessary to take clear action, the greater our success will be.

    Obfuscate 'til the cows come home. It may very well make money, but the simplest approach using price bars, domes or indicators is the most probable path to success.
     
    #79     May 14, 2008
  10. An excellent summation of things austinp.
    Thanks
     
    #80     May 14, 2008
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