Not sure if acrary will return to this thread, but if anyone else can answer...I've been thinking about this and though I understand based on the example he provided, it seems hard to believe one can't discern certain repeatable patterns--at least to some significant degree--from the OHLC data. After all, whatever time frame one uses, that data is used to assess the behavior and the current situation existing for whatever trading instrument one's using. It seems since human nature is somewhat repetitive, that this kind of info should at least be considered in finding an "edge."
I'm a profitable trader which focus a lot on OHLC data. There ARE FOR SURE repetitive patterns inside. Price-&-volume charts are my important edges which everyone can readily access.
WmWaster, I'm finding more and more leaning toward solely price and volume action, rather than incorporating indicators too. Maybe there's room for them to some degree, just not sure if they're necessary. Thanks for your reply, btw.
I don't use indicator (much) either. They are only supplementary. (I know there're successful indicator traders, but not me). Little use to me unless I'm in automated trading. I like to read raw data (ie OHLC & V) instead of the condensed version. I can get much more informaton from raw data. Why read the condensed versions? I remembered I moved one big step forward when I switched my major reliance on (pairs of) indicators to raw data. Thanks for your thanks too, BertH.
WmWaster, I look at various time frames on the OHLC/V spectrum, such as daily, hourly, half hourly, etc. Frankly, I'm not quite there yet, though I think I'm close. (as far as figuring a very effective trading plan) What are you referring to when you say "raw data"--tick-by-tick? 'preciate it!
Never mind. I was slow on the draw earlier. You contrasted 'em to indicators, so I can assume you're solely referring to the price and volume action without the need for the indicators.
Why do you persist in pimping this antiquated strategy? Stat arb is done, Don. Come on. That's like someone trying to sell a buggy whip.
Perhaps because everyone doing it? The logical conclusion of such a sound strategy would be to slice up the returns of it... requiring greater and greater leverage to make decent money, which eventually makes the potential for drawdown so great that it's no longer worth it. We've reached and exceeded that point with Stat Arb strategies.
Yes, you are right. Indicators are the packaged version of OHLC/V. But I know some traders can trade solely by tape & tick charts. Amazing! Anyway, I'm not going to be an all-master. ============================ Glad to hear I'm helpful. Thanks for your thanks.