Price, time and volume can be considered as parameters to be observed but there is no rigid rule. Its my personal insight that market is just a product of trial and error method. Dead = past. Live = present. All i mean to say is focus on what is happening now and timing the trade is more iimportant than predicting. Yes momentum is also a pattern but i insist to focus on momentum than pattern itself. I propose a dynamic signal as stoploss than a fixed loss which is more effective in reducing losses.
I skimmed your explanation of graphs and buy/sell signals. Trial and error is indeed your way approaching the problem of trading. There exists countless other methods too. On the surface it does seem like a valid approach though I'm not sure how to estimate expectancy of your method. Though it can concievably work provided enough experience, dilligence and discipline. Other method may incorporate more or less degrees of "prediction", though I think we should agree that the differences might be semantic. My logical "proof" of this is, think of a MTF version of your method, where higher TF could "predict"/anticipate lower TF bias. One higher TF bar could span very many lower TF bars, and thus lead to "prediction" within that lower/faster context. What matters more than the prediction though, is how to deal with it when it's blatantly wrong. There are several different ways for that as well.
Eno's great ! This song takes me back,... If price, time and volume are the parameters that you are measuring, and there is no rigid rule, I’m confused as to how you can equate it with physics which attempts to use math/geometry to quantify and formulate exactly that. Here are other ways to approach problem solving other than trial and error. https://simplicable.com/new/problem-solving Behavioral flexibility in problem solving
Not so. 10% on a $10,000 account is a much different ballgame than 10% on a $10,000,000 account. It does not take a trading genius to make 10% on a small account, month after month. It does, however, take a lot of finesse to be able to pull those kind of returns on a much larger account.
Patterns are prone to optical distortion, as if your looking at it through the fooking lens.Pattern trading is for the brain dead dummies.Timing and momentum is everything though.
Lots of BS here. Title is misleading : I thought you will speak about physics and trading. None there. Only BS. There are two physics law that apply in trading : path of least resistance and momentum. What does it imply? 1 path of least resistance The more resistances (or supports), the more difficult to break. Price will have a tendancy to avoid resistances and return to the mean / median 2 momentum Price can't stop or reverse immediatly. More volume / buying / selling power will imply a longer swing / rise / fall. So if you apply these two physics law, you should easily understand you can at least predict on a short term basis direction of prices with a good probability, and trade adequatly. Gaps are perfect examples. CM
When i say "physics" i am insisting to consider the three dimensions of the chart : price, time and volume before any amount of prediction. People tend to become too much subjective in their predictions and become blind to happenings on chart."Physics" is a strong word to tell my message. In my opinion "trial & error method" is the closest match to stock charts.
In stock market greed and fear are the two forces which physical laws cannot understand. When i said "physics" here in this thread i meant these two emotional forces that are tested and reflected on chart as trends, ranges and momentum. Trial and error method is the closest reality as far as my observation.