Trend lines or indicators

Discussion in 'Technical Analysis' started by gifropan, Feb 29, 2008.

  1. Surely preference must have little to do with it. Some approaches must be superior to others. It might be very hard to establish though. If it was a matter of preference, it would imply that all approaches are equally successful or not as the case may be and we know that this is not the case. The question is how to establish which approach increases the odds of success.
     
    #11     Feb 29, 2008
  2. How can you use fundamental analysis in short term trading. Does the local/market maker use fundamentals??
     
    #12     Feb 29, 2008
  3. MAESTRO

    MAESTRO

    Who said fundamentals? I did not say it ... I don't care about fundamentals at all!
     
    #13     Feb 29, 2008
  4. I thought one relied either on technical or funcamental analysis. What other options are there?
     
    #14     Feb 29, 2008
  5. MAESTRO

    MAESTRO

    Sentiment, Psychology, Statistical Arbitrage, Zero Cost Option Constructs etc. TA and FA are from the Stone Age!
     
    #15     Feb 29, 2008
  6. jjf

    jjf

    T & A is the weapon of choice.
     
    #16     Feb 29, 2008
  7. 9999

    9999

    Good question, and I'd like to know the answer as well.
    When it comes to trading firms, banks, etc. I agree with you. But for a small retail fry like myself, I really believe personal preference plays a big part.
     
    #17     Feb 29, 2008
  8. I hear what you are saying but I thought techincal analysis covered Psychology, Statistical Arbitrage, Zero Cost Option Constructs etc and any other factors affecting the price hence the adage "its all in the price"
     
    #18     Feb 29, 2008
  9. the 2 tls tools I use are the Standard Error Channel and Fibonacci tool

    while MAs can be considered tls, indicators can't project Price and Time
    targets which is one of the major functions of tls in my methodology

    however it depends what and how you're trading since from my pov the
    application of tls is manual, trying to draw tls on thousands of stocks is
    impractical even with auto tl indicators

    if you're trading futures intraday here's one thread illustrating the combined
    use of tls and indicators:
    http://www.elitetrader.com/vb/showthread.php?s=&threadid=113044
     
    #19     Feb 29, 2008
  10. lakeshow

    lakeshow

    From your statement, I imply that you prefer trendlines over indicators. For discretionary trading, I think it is a matter of preference. A discretionary trader will use whichever he has the most success with, whatever the reasons may be.

    I also prefer trendlines. I found that indicators easily distract me from analyzing intraday action. Even volume analysis, often not thought of as an indicator, can be too noisy for my own trading. When I just focused on bar charts, drew some well-thought out trendlines, and watched how the market reacted around these levels, I started to have greater success in reading the short-term action and picking my spots to trade these moments.
     
    #20     Feb 29, 2008