When does a trend start and when does it end? Is it a pullback or a trend change? Can it be defined mathematically so that it can be tested before wasting time and money?
In the simplest explanation I trade BOs, I trade channels, and I trade Trading Ranges. The more complex thing is that there are several ways to trade each one. And then there are always variables; some known and can be anticipated, others not known until they happen, and others are unknowable (cannot be known). If a trader just trades one thing, one way, and he/she is willing to wait for that setup to happen then it can be simpler.
Sounds like all we need to look for is a reversal. It can be defined an infinite nbrs of ways and tested.
Actually yes, a version of @volpri's approach. It is simple but the devil is in the details. I have been paper trading for over a year. It might take another year before I can say if it really really works. Take care.
Since we don't have enough lifetime to test the infinite, what is your definition of a reversal that you have tested and proven to be positive expectancy?
A break of a previous high / low is bullish / bearish. Now we need to remove noise and build decent reward to risk positions around the ongoing bias and variance. One way to decrease noise is to mark down the low / high, only once price makes a new high / low Another way to decrease noise is to look for a minimum amount before to call it a change. But these are my secrets. Find your owns
I think the Thread title is a bit deceptive. In any endeavour the "Pros" do the basics better than the rest. But getting there takes a lot of, for want of a better word; "complexity". Think of the Science that goes into training a Surgeon, a pro Athlete etc.
Simple isn’t always easy. It can even be pretty difficult. As you said … it can take a lot of mastery. To take something complex and distill it into simple, clear actions. I think we can agree that trading isn’t simple, But complexity can be turned into simplicity via mastery (which isn’t an easy task).
Intraday PA is complex. But complexity can be turned into simplicity via understanding of the main driving functions of the complexity. It is easy in options but very hard in day trading.