Price action is king, but don't diss indicators yet

Discussion in 'Automated Trading' started by alex.samant, Aug 1, 2008.

  1.  
    #11     Aug 3, 2008
  2. So if someone, as many institutions have done, rigorously tests many indicators, and finds little predictive power,

    that someone else using the same data, and believes in TA, can get better results? How, by fudging the numbers?

    You have well stated the entire problem with TA. People believe in it, like fairies, elves and pixies.
     
    #12     Aug 3, 2008
  3. I agree
     
    #13     Aug 3, 2008
  4. Are you saying TA is worthless? lol blindly buying something is equally as stupid based on a few numbers.
     
    #14     Aug 3, 2008
  5. ammo

    ammo

    the weather changes every day yet all in all is still the same,kind of like this broken record of an et argument
     
    #15     Aug 3, 2008
  6. kut2k2

    kut2k2

    Well said. :cool:
     
    #16     Aug 4, 2008
  7. The attached image is a 14,3 stochastic anchored to a line chart of closing prices that’s 14 days long with a 3 day moving average... look at the image and think about it for a moment, what do you see?
     
    #17     Aug 5, 2008
  8. Indicators serve one purpose, feed the mouth of the those who developed them.

    Don't be a fool, break that stage of ignorance, the sooner the better.

    Stick to naked charts and lines, you will instantly become a better trader.

    I'm sure many will wipe their asses with this suggestion but there will be come a time when you will noticed how useless they are and you will say, darn, what a schmuck.


    Anek
     
    #18     Aug 5, 2008
  9. sure, its the point at which the charts look just to self justifying

    after the fact

    not before

    position sizing, taking the risk trade and hoping are the rest of the equation....

    stop losses really do stop the losses, just never soon enough...

    profit targets work, until the rally continues beyond one's exit point....

    repeats and three-peats are only good in tournaments, like the basketball playoffs....

    so is there any peace out there?, hardly, when it comes to analytical trading....
     
    #19     Aug 5, 2008
  10. I agree with above if I would trade one market only .If I have to follow multiple markets I need something to tell me that an entry setups are in works.
     
    #20     Aug 5, 2008