Why does TA not work (for you)?

Discussion in 'Technical Analysis' started by Xspurt, Aug 4, 2012.

  1. cornix

    cornix

    Of course it is.
     
    #181     Aug 6, 2012
  2. BSAM

    BSAM

    Very good brother Corn.
    Many seem to think it's (only) triangles and squiggly lines.
     
    #182     Aug 6, 2012
  3. Bar 1 was a wait and bar was the P2.

    bar 3 is the T2

    And so now we are looking for the FTT.

    you are now 4 points inot the trade.
     
    #183     Aug 6, 2012
  4. cornix

    cornix

    Well, my conclusion comes from that famous (and pretty good I must say) Edwards & Magee book is named "Technical Analysis of Stock Trends" while it actually describes price action at it's best, paying only some attention to anything else if any. :)

    And in general I think TA is any trading that is based on observing market's action rather than analyzing what could cause this market action (aka macro picture aka fundamentals).
     
    #184     Aug 6, 2012
  5. You have lock in on bar 4 for another P2 of the long.

    This means the long can wrap in a couple of bars.

    you need both sides of the third trend move. You will get the second side on bar 5
     
    #185     Aug 6, 2012
  6. BSAM

    BSAM

    So, brother Corn, you're saying there's:

    1. Technical analysis.

    2. Fundamental analysis

    3. Insider information.

    Is this correct?
     
    #186     Aug 6, 2012
  7. I also think that psychology is a crutch that many use to rationalize failure.

    If you go back to the study, there was an "edge" embedded in the game's odds, so that part was taken care of by the study design. The study didn't necessarily show that people with little or no emotion are better at designing strategies. Since a strategy is, almost by definition, developed by taking a step back from the market action and trying to see the overall way in which the market works, it's something that even the most emotional person ought to be able to do without bringing emotion into it.

    The only "psychological" question I think is relevant is "If you DID have the psychological strength to follow your rules EXACTLY, would you make money?"

    If the answer is "no", then it doesn't help to worry about psychology at all. Worry about improving your strategy. Every minute spent on one is at the expense of the other, so choose how to allocate your time wisely.
     
    #187     Aug 6, 2012
  8. bar 6 gave you a failure to end.

    so bar 7 is in a yellow box ans will jump out the top and keep the long gonig to the FTT
     
    #188     Aug 6, 2012
  9. cornix

    cornix

    Well, I am not trading chronicler, but think yes, this classification is pretty close to reality, just maybe insider info can be put into #2 being the form of illegal fundamental analysis (analysis of the causes driving the market rather than market action itself). :)
     
    #189     Aug 6, 2012
  10. notice how the yellow box dissapeared when the black bar 7 BO its top.
     
    #190     Aug 6, 2012