Why Technical Trading Signals Stopped Working

Discussion in 'Technical Analysis' started by SunTrader, Nov 20, 2019.

  1. SunTrader

    SunTrader

  2. wrbtrader

    wrbtrader

    He specifically mentions "long term momentum indicators" at the 1:23 min mark in the video when asked by the host "what sort'uv indicators has lost their resonance with the trading crowd".

    Later...he states the most powerful signals come out of monthly charts but he doesn't say which technical indicators he's using on those monthly charts.

    He recommends entering a small position via the charts but only increasing (adding) to the position when the fundamentals come into play. Seems like he's explaining how to invest via technical analysis with fundamental analysis.

    I'm surprise they didn't talk about which long term technical indicators are working in comparison to talking about long term momentum indicators that are not working.

    wrbtrader
     
    d08 and Nobert like this.
  3. dozu888

    dozu888

    i didn't even watch the vid.... this is all hog wash... long term happened to worked better because we just had a few years of trend.

    there is no rhyme or reason in the indicators.. you'd never have confidence trading on tea leaf reading because that's what indicators are.

    read my thread 'trading is easy'.... everything is logical.... everything happens for a REASON.

    blue line crossing the red line on a chart is not a reason.
     
    stochastix and SPYAlgoTrader like this.
  4. wrbtrader

    wrbtrader

    I'm glad the video didn't talk about blue line crossing the red line. :D

    In contrast, he's clearly talking about some kind'uv indicator on a monthly chart that gets him into a trade and then using fundamental analysis to increase the position in the video.

    Yeah, he was talking about trading with the trend as stated in the video.

    I'm curious about what technical indicators he's using on the monthly chart while trading with the trend and then maybe adding to the position via fundamental analysis.

    wrbtrader
     
  5. notagain

    notagain

     
    TooEffingOld and dozu888 like this.
  6. wrbtrader

    wrbtrader

    So investors are about breakeven. Yep, gotta pay the fees and taxes too...few think about it until tax time. :rolleyes:

    wrbtrader
     
  7. dozu888

    dozu888

    Well ain’t really only 2 indicators? With trend and counter trend.
     
    murray t turtle likes this.
  8. I do not find this to be true. Divergencies still exist no matter who is moving price...
     
    dennis86 likes this.
  9. tommcginnis

    tommcginnis

    06:00 - 06:35 -- my favorite part.

    Ritholtz rocks it again.

    [EDIT]
    and 03:05 - 03:40...
     
    Last edited: Nov 21, 2019
    nooby_mcnoob likes this.
  10. pipeguy

    pipeguy

    Well, how would you explain such market anomaly as momentum? Clearly, it does have a reason (greed or fear either through human or machine action) but to trade it we don't need a reason outside of the assumption that if there is acceleration of price movement it can continue moving in this direction for some time.

    There is no doubt price movement is random for 90 or 95% of the time and technical analysis can't work here. We are simply looking for an edge where there is strong selling or buying imbalances which can be non-random.
     
    #10     Nov 21, 2019
    dennis86, MACD and themickey like this.