retraces i find sometimes noisy,though i have no programming skills to eliminate the from my display.
Agreed And many books/articles/recomendations you can read base their assumptions on market behaviour on a daily chart (ie candles) It aint the same intraday - it just aint
You, the trader decide what is noise and what is the trend you are trying to capture. If you are taking your kids to school in the morning, there is a little noise and then a short trending trip. If the family is going to grandmas for the weekend there is more noise, but a longer trending trip. If you live in NYC and grandma lives in SoCal there is a lot of noise but a very good trending trip if you stay with it and don't go crazy.
otherwise, I like that quote, according to Einsten, everything is relative, and that is the only absolute on a Friday night, wish I had some pot "What is an absolute relative to?"
I believe "noise" hinders traders at 2 levels ... at the highest level (trading plan), it makes it difficult to identify these behaviors (patterns/structures/...) that could produce a system w/ positive expectation, because a particular behavior is scattered through many others behaviors plus a ton of noise. At the lower level (day-to-day execution), noise makes it again difficult by making each instance of a specific behavior appear quite unique, often times different enough from the template behavior to raise questions about the validity of this instance (for discretionary traders) or have it simply missed by an automated system. One could add there are also instances of pure noise that match the template definition for a particular behavior, but I would argue that it is impossible to prove it was noise not signal, so I am deliberately ignoring this (provided the template definition for a behavior has been refined enough). Against this low-level noise, for a specific market behavior identified & modeled as a "template", I use metrics to measure the quality of each instance (vs the template definition), and statistics out of backtesting to set thresholds for those metrics (which become execution filters). One of the keys is to have a loose enough initial definition of the behavior ("outside" template), to capture & measure as many variations as possible, in order to refine the "inside" template through those metrics/filters.
noise is what the parent's of a successful musician have to listen to while the kid's growing up,if he/she makes it,it becomes music
Seeing is believing. I have to see significant profits being derived from a randomly generated series before I believe it.