Technical Analysis = CRAP

Discussion in 'Technical Analysis' started by Frits, Apr 27, 2011.

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  1. And I am patiently waiting for the official invite to Ohio, btw.:D
     
    #481     Jun 22, 2011
  2. I can't believe how huge this thread is getting. Wow!

    So, for me, the key to technical analysis is to know what I'm analyzing. If you could see an out of control crowd running down the street, you could see the fear in their eyes or the lack of inhibition and guess with amazing accuracy that they're going to keep being unruly for a while. Later you could see the calming begin and would know that they're about to break up and go home. TA is just a way to see this through a different set of eyes within an invisible crowd spread out all over the world.

    Learning how indicators reveal the crowd is like trying to see what's going on inside the Matrix by looking at the green symbols falling down the screen in the movie The Matrix. It's just a different language.
     
    #482     Jun 22, 2011
  3. I don't understand how Time can be removed from a financial chart. It's inherently there despite just measuring tics due to the very nature of the market down to every trade that takes place on a timeline. It seems that removing the time constant only leads to additional chaos. For example, with a 347 tic chart -- there will be a differing number of bars depending on th trade volume each session. It simply makes no sense. Even for TA true believers.
     
    #483     Jun 22, 2011
  4. bone

    bone

    Umm, the old Point and Figure is still one of the better technical systems out there. So is Market Profile in the sense that it's a vertical price histogram that is really designed to identify value areas. Depends on how you use it.

    Trading with the P&F breakouts is one of the better TA systems you will backtest and trade fo reals playa. Still highly effective.
     
    #484     Jun 22, 2011
  5. Yes, I am aware of those methods. My point is because it takes time for the patterns to form, time remains an inherent part of any TA method--- whether or not it's directly measured.

    Surf
     
    #485     Jun 22, 2011
  6. bone

    bone

    Surf - for my own personal trading, and with my client work, we use mulitple timeframes. Overlaid. On the same instrument/spread.

    I could not survive trading if I was forced to use just one timeframe on a flat price instrument directional play. No way. Tip of the hat to those of you who do. There are easier ways.
     
    #486     Jun 22, 2011
  7. Updated chart through end of Crude day.

    [​IMG]
     
    #487     Jun 22, 2011
  8. I will give you plenty of notice, promise.
     
    #488     Jun 22, 2011
  9. Thanks for the clarification bone.

    Surf
     
    #489     Jun 22, 2011
  10. bone

    bone

    Prof, that is indeed the sharpest, most comprehensive piece of chartwork I have ever laid eyes upon. I am also gratified at the absense of wavecounts and Gann lines. Well done.
     
    #490     Jun 22, 2011
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