Price represents supply and demand interplay in time which is economics, so TA falls under social sciences rather then physics. The "law" of supply and demand exists in a social world. But TA cannot be entirely separated from physics because: It studies price movement through time and time is a physical dimension. Price moves with arrow of time - future price depends on past price so there is a cause and a result (+/-randomness). Price is related to caloric expense (labor) - you need to expend energy to acquire resources (stocks, commodities) at a given price. Higher price - more labor units required.
Vectors have both direction and magnitude. Cycles, periods, vibration, oscillation, inertia, momentum are all descriptions of observable phenomenon - many concepts can be applied to both domains of physics and trading. Torque is probably one of the more difficult ones to map. I’d put pace at re-supply at limit in that category.
Interesting representation. I think a code snippet named "twists and turns" is in there somewhere. How's things @Sprout?
Here is something you could try that I did tonight. Use multiple different future contracts. Pick a trade in one. If trade is going against you towards a stop level or standard deviation, either kill the trade or let it stop out, but don't average into a losing trade. After being stopped out, look for another setup in a different future contract that you are following, if trade is going towards your target, don't kill the trade and let target be double your loss for the previous trade. However, it should still respect a possible resistance level and don't take a trade that is too close to a resistance level where you would not be able to achieve a double standard deviation reward vs risk. What is the TA benefit of using this strategy? It allows you to have a 50% win rate and shows a positive expectancy while pissing off Noobs that think TA is not relevant because TA does not achieve 100% predictability.
I have a method thats so simple, even an ET member could understand it Sadly, thats the very reason I must keep it a secret till my last breath
Hey @tiddlywinks ! Things are good. Been away from intraday trading and into swinging the crypto markets lately as I put a second floor on my house. It’s been fun but looking to get back to work! How have you been? Enjoying the recent volatility?
%% Good question; most likely because some science + some art/elementary math may be involved...……………………………………………………………………………………………………………………………...IT'S not rocket science, but could get something from a man that wrote ''Rocket Science'' Actually I stiil enjoy reading a trading book with fractions/bid/ask spread...………………………………………..
I wouldn't say that, maybe technicals have less relivence than fundamentals but they still have their place. If you use major indicators that most other gurus teach you when just beginning most of the time they work. However I also believe "when everyone is fearful be greedy and when greedy be fearful".
In that case, you should have no problem proving that via a backtest. Post the results, please? If any of them worked, then everyone would be a successful trader by following a simple cut-and-dried formula: 1) use major indicators, 2) retire in comfort. Perhaps you can explain why 95% of all traders blow out their accounts. (Back when I first started, I ran backtests on all the major indicators - some 20 of them with a variety of parameters, if I recall. Only a couple of them resulted in a positive P&L over a 20-year span, and none of them produced a meaningful return. Not a single one came close to B&H on a major index.)