What is the most influential technical tool from the following list

Discussion in 'Technical Analysis' started by athlonmank8, Dec 22, 2019.

Out of the list below what do you think is the most influential tool

Poll closed Jan 5, 2020.
  1. Pivot points (R1, PP, S1, etc)

    3.6%
  2. Moving averages

    32.1%
  3. Channels

    10.7%
  4. Trendlines

    12.5%
  5. Fib retracements (default and non default %'s)

    3.6%
  6. Retest of broken trendlines, channels, levels

    0 vote(s)
    0.0%
  7. Horizontal levels

    23.2%
  8. Patterns (flags, cups, etc)

    5.4%
  9. Candlesticks (pin bar, engulfing, or simple red,green)

    8.9%
  1. Nobert

    Nobert

    Probably the best poll this year (?)

    but where is ichimoku clouds ? :D
     
    #11     Dec 22, 2019
    tommcginnis likes this.
  2. %%
    One mans or womans trash is another's treasure.LOL I see your points; I just voted in his poll [moving aVerages]. A lot of my candles are colored red + blue.Thats another reason I don't trust polls much, he really did not have my exact answer+my exact colors. Merry Christmas, Happy Hanukah/holidays
     
    #12     Dec 22, 2019
  3. ET180

    ET180

    I have backtested some of this stuff across hundreds of stocks and ETFs going back to 2008 (I could have gone back farther, but limited the scope to after 2007). I looked at forward returns over periods of 5, 10, 15, 20, 25, 30, 35, 40, and 45 days. Submitted each set of returns to a t-test against randomly sampled entries. Looked at long entries only. End result, only buying at the lower keltner bands produced a statistically significant edge relative to random entries and only for a subset of instruments (less than a quarter...in other cases, there were surplus returns over random entry, but not statistically significant). I did not see any kind of edge from buying at 50, 100, or 200 EMA or using MACD cross-overs relative to random entries that was statistically significant. Actually, for the MACD, I found surprisingly that buying when the signal line is below 0 is better than buying when it is above zero. Maybe that makes sense given the history. Buying the dip has worked well since 2008. Although pretty much everything produced a positive return because the market mostly went higher over that period so even random entry "worked".

    For those that have luck with the moving averages, I'm curious as to how you use them. I'm guessing that they are mostly used as a filter for another signal.
     
    Last edited: Dec 22, 2019
    #13     Dec 22, 2019
  4. %%
    Maybe like a fast sto…………. so good or so useless for profits; best no to mention it much LOL-LOL:D:D,:D:D:D:D:D:D:D
     
    #14     Dec 22, 2019
    Nobert likes this.
  5. ET180

    ET180

    I know some people discount trendlines, support and resistance, and other chart patterns, but Tim Knight over at another website has been relying on those methods for years and only shorts stocks. If he's able to make money doing that for the past decade despite the strong bull market, then that stuff must work (assuming that he actually makes money trading and does not just sell charting software and subscriptions).
     
    #15     Dec 22, 2019
    athlonmank8 and murray t turtle like this.
  6. schizo

    schizo

    Aren't they essentially the same? Channel is basically TWO parallel trendlines. :)
     
    #16     Dec 22, 2019
  7. %%
    No, not the way he worded it. I've see straight trendlines drawn all over the pace, biggest mess I've ever seen, except for grids======== not really trendlines -no wonder so many hate TA/straight lines.LOL……………………………………………………………………………………………………….
    upload_2019-12-22_17-51-12.png werte hit bottom once , on QQQ , so late in the year, so each to his own.
     
    #17     Dec 22, 2019
    tommcginnis likes this.
  8. SunTrader

    SunTrader

    IMHO the opening price (what's happening now) is more important.
     
    #18     Dec 22, 2019
    murray t turtle and athlonmank8 like this.
  9. schizo

    schizo

    TA followers are like the protestants. Like there are sooooooooo many different denominations in the protestant movement, TA abounds with never-ending interpretation. There's no end in sight. So I say, to each their own. Peace. :)
     
    #19     Dec 22, 2019
    tommcginnis and murray t turtle like this.
  10. Here's one of my entry edges. **This works better when daily and Weekly candles are setting new highs.** Long GBP/USD off of 1.3000. Trendline confluece with moving averages and the previous high break increases the probability. On the intraday the 4hr 20 periods are above price so this trade isnt a done deal yet(this is important).

    I did not include the channels but it's funny, the top 3 things in this poll are the top 3 things that work great when combined properly. The quants are using math very similar to this.

    This most important thing after the entry is trade management and cutting losses. Since 40 pct of my trades are losers I cut losses accordingly.
     
    #20     Dec 22, 2019