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True (for conventional MAs). False.

Hi, gkadir :) That's pretty much my approach as well. I confess to wasting a lot of time looking at stochastics when I first got into TA, until I realized that I was trying to do the impossible! The good thing about that experience was that I learned to avoid the same mistake with Fourier...

Q: Why is so much of TA unreliable/incomprehensible/lame/convoluted/fraudulent/stupid/haphazard/bogus/mystical/etc.?? A: TA is an unregulated activity involved with money. As such, it draws an amazing number of crackpots and an even greater number of scammers and other creeps looking to...

You know the old clichés that begin with "There are two types of ..."? Well, there are two types of Technical Analysis: the type that attempts to detect a price trend and the type that attempts to predict a price trend. Yes, it's true: not all TA is about prediction. Whether you are...

Would those be assertions by the same ivory-tower types who insist that price returns are random? :D :D The TA that works well hardly ever -- maybe never -- gets written up in econometric articles. Little wonder that they are unfamiliar with it.

I've long been amused by people who advocate funnymentals as somehow inherently more rational than technical analysis. Both TA and FA are minefields, you just have to go with the few techniques that make the most sense and hope for the best.

Ah. Semantics. I've yet to pick up a TA book that didn't explain how to use the indicators. Did the author hold the reader by the hand and explain every aspect of trading, including risk management, stock selection, yada, yada? Hardly ever, but that doesn't mean he didn't explain how to...

30 trades a month times 36 months is overkill IMO. Do you really think anything that happened more than, say, 360 trades ago has any relevancy whatsoever to what happens tomorrow? Personally I'd cut back to a year's data or 360 trades (whichever is longer), optimize the first two months, then...

:eek: :confused: :confused: :eek: Sorry but I have to ask, because my morbid curiosity has gotten the better of me (again :p). I confess that I know nothing about candlesticks as a trading tool. I've never studied them and I've long suspected, perhaps incorrectly, that they don't work...

LOL! I love counter-trenders. They've convinced themselves that they can pick tops and bottoms. More money for trend players to pick up! :D :D :D

Your "maximum adverse move" threw me off. Why didn't you just say Maximum Adverse Excursion (MAE)? That's cake to optimize, real-time: multiple = max(MAE/ATR)_wins

So are you suggesting that I reoptimize the multiplier on a weekly walk-forward basis?

'No' to which part of my (sorry) compound question? :confused:

Hi, Lefty The chandelier is a volatility-based stop that is self-adjusting. That's why I asked about it. I'm surprised it hasn't been discussed more in this forum. I would be surprised if there is typical "gunning" of someone using a chandelier but it would be nice to know if anyone here...

Q1 "Assuming a next-day market entry after a buy signal is generated, should I assume the average fill will be, say, one-third of (O + H + L)?" Answered. Thanks again to mschey and Vince1. Q2 "Assuming I can enter a trailing stop at the same time I enter my buy order, should I assume the...

Thanks, illiquid. So will anybody answer the questions? Is there a cut-off point? Is the chandelier safe? Please respond.

I keep seeing nightmare stories of a specialist or a market maker deliberately dipping a price down to trigger a trader's trailing stop, then bringing it back to the previous level. Apparently these shenanigans are legal. :mad: But there must be a cut-off point, right? Does anybody know how...

True but we weren't discussing real life, we were discussing what "should be." My point was, even in your ideal world, Cramer should not be punished regardless of whether he's scamming because nobody paid for his advice. I'm not saying his followers deserve to lose but I do find it hard to...

Free, dude! ==>> http://www.tickquest.com/product/equitymonaco.html :cool:

Strictly speaking, this applies only if the guru is charging the recipients for his advice. Cramer isn't charging the recipients, his boss is charging the show's sponsors for their ads. Cramer's advice is worth exactly what the listeners pay for it: zero. If they are foolish enough to believe...