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That is by definition anecdotal. Empirical would if you went and tested his approach, e.g. subsequent return given candle formation A. There are, in fact, lots of studies of subsequent returns on candle stick patterns and if you read them they will demonstrate very little to negative returns.

2-10% depending on your risk tolerance...could be worth a lot, could be worth 0. However, adoption and uses are rising, so for now it seems like it has staying power.

my question is what makes you think that al brooks' understanding of the market is rooted in reality? as volpri mentioned, there is a claim that behind every tick is an intention -- when in reality this is not true. most investors (so the vast majority of the incremental volume you see) do not...

you're getting confused -- an investment thesis is a rationale behind why you would buy or sell something. it is the raison d'etre behind every trade, except when seeking liquidity. you are far beyond the curve if you think what i'm saying to "academic" lol.

The "value add" in your approach is that you are staying invested in a basket of momentum stocks. You don't need actively manage that using TA -- you can just automatically rebalance your basket of momentum stocks every x period based upon their price performance. This is what I mean when I say...

Yes god forbid I question your methodology and approach. :thumbsup:

you cannot discern intention using price data. The vast majority of the flow in the market is not using tick data to generate an investment thesis. The only ones who are doing so successfully are hft market makers. And they do not use Brooks’ price action analysis lol.

To be fair, guys in the hft space, have win rates around 51-53%. The problem with having a low win rate is that it means that overtime you will go bankrupt. This is because you don’t not know the actual return on your trade until you close it — so you would need to see what the actual returns...

@volpri I’m not sure if you get this but even if you look at a 2m chart you are looking at historical data and using that as a basis for your assessment of the fair value of a security. I’m not going to get into your intentional mischaracterization of semi strong EMH. Isn’t it funny how you...

Stop worrying about traps. No one is trying to squeeze a guy with 5k in his account (except his “forex broker” ofc). Start from the perspective that stock prices between informational events move in a random walk, which means all patterns are “traps” (e.g. not presenting any opportunity, though...

Use the quantopian one. I’d advise not to use prepackaged back testers just because features are typically not robust.

Wait are you arguing for using fundamentals instead of price action? anyway please no more strawmen. I didn’t say that strong form emh is true, I said semi-strong form is the what literally every manager believes (including buffet). For the record EMH is seen as a classification of how...

@volpri HFT firms are institutions— they are the market makers posting bid/ask on your quote. Al Brooks has no clue lol. He just randomly decides to define random shit instead of using actual definitions. Day trader = someone trading intraday. It has nothing to do with the time interval lol.

What you posted is anecdotal evidence e.g. cherry picked charts. Have you verified your trading across out of sample data across different market cycles? Nope.

Your statement is highly compatible with semi-strong form efficient markets and momentum, and I have no problem with that. However, that approach is not sufficient to beat a buy and hold using the same basic rules. E.g. actively managing positions using technicals doesn’t add value, just...

This should read mature company***** and not nature company lol

The market can’t be timed consistently, which is the risk. Even the most sophisticated traders (like RenTech, Citadel, Millennium, Virtu, etc.) must manage risk in order to succeed. Instead of trying to time the market, you should think about how you are positioned relative to your expectations...

Looking forward to him joining ET.

For pre earnings companies rev growth and ebit growth can be good proxies. What makes accelerating earnings a good driver of stock returns is that it requires investors to revalue the stock at much higher prices. Revenue and ebit lead earnings, and only when a company is in its earnings phase...

Ochem is rooted in empirical analysis. Brooks is not. If the teacher was qualified and subject material robust, then perhaps one should consider the students ability. But if the teacher and subject material is fake (not empirical, not rooted in actual analysis, not recognized by actual...