I suppose it depends on how you use them, and the nature of your overall method. I imagine that they can keep a trader on the right side of a trend in his time frame, but I think there are simpler, and perhaps better, ways of doing that. Just my own opinion, of course.
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A Proposed Debate: SCT vs. CO
- Thread starter hypostomus
- Start date
Quote from Thunderdog:
I suppose it depends on how you use them, and the nature of your overall method. I imagine that they can keep a trader on the right side of a trend in his time frame, but I think there are simpler, and perhaps better, ways of doing that. Just my own opinion, of course.
Right again, T-Dog.
JJ
I don't have a beef with people who use channels.Quote from Allmighty1:
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I have to wonder if anyone here has read "Technical Analysis of Stock Trends" by Robert Edwards & John Magee. I don't want to be patronizing, but as it turns out, channels have been in use for decades. (Really? You don't say?...No, its true...) Yet you folks (some of you anyway) seem to want to put those who use channels down for some reason.
A1
My beef is with Jack, who has appropriated trend/channel trading and tried to
pass it off as something new by giving it and many of its parts new names.
Indeed, SCT traders would be better off studying trend/channel writings other than Jack's.
The other problem with Jack is that he has done a lot of marketeering: appealing to greed (3X daily range) and traders' insecurities (he offers comfort, support, confidence, etc.),
which, if anyone will read, i.e., do the real work, is not found in the writings of respected authors on trend/channel trading.
did somebody say 2 MAs?Quote from hypostomus:
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Thanks for sharing that you use two EMAs. Extended inspection of price action and empirical fitting reveals that to be a useful tool. Best regards.
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http://www.elitetrader.com/vb/showthread.php?s=&postid=702833#post702833
Quote from nkhoi:
did somebody say 2 MAs?
http://www.elitetrader.com/vb/showthread.php?s=&postid=702833#post702833
Well, it has better risk management, profit targets and margin requirements than Puretick that's fer sure, but I think both the SCT and TA enthusiasts can do better.
JJ
Attachments
Funny you should mention that, Nkhoi. I keep a three filter rainbow up for the occasional breakout fast scalp. It sfailures also indicate good entry points for the two-filter longer term system.
Thunderdog, indeed there are simpler methods, called S/ R and trend rules, but often I used to be shaken out of a good trade by them. For example, say I am short in a long run. Then a higher low and a higher high appear. The temptation is to reverse. Maybe right, maybe not. It has been a common pattern at mid-day in NQ recently. A properly tuned two-filter system tends to screen that out.
code word: rainbow triggers another thread, starting third post down;Quote from hypostomus:
Funny you should mention that, Nkhoi. I keep a three filter rainbow up for the occasional breakout fast scalp. It sfailures also indicate good entry points for the two-filter longer term system.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=6793&perpage=6&pagenumber=2
I understand your point and readily concede that I find myself in similar circumstances. Perhaps my testing of MAs was less thorough and systematic than yours, but I remain unconvinced that they necessarily provide a net benefit over and above what you correctly refer to as trend rules. Has your testing confirmed that your MA filter screens out false "trend rule" setups more so than it filters out true reversals? I realize that the outcome of your testing is dependent on the MA values as well as other system criteria, including the exact definition and execution of "trend rules." Even so, I am curious.Quote from hypostomus:
Thunderdog, indeed there are simpler methods, called S/ R and trend rules, but often I used to be shaken out of a good trade by them. For example, say I am short in a long run. Then a higher low and a higher high appear. The temptation is to reverse. Maybe right, maybe not. It has been a common pattern at mid-day in NQ recently. A properly tuned two-filter system tends to screen that out.
a post that I made on antoehr thread.
enjoy
jj
enjoy
jj
Quote from JimmyJam:
... and of course, there are those who advocate trading on more than one timeframe to catch the true trend!
Triple Screen Trading (note: this is a four part article based on a method popularized by Dr. Alexander Elder - from what I hear he's a multi-millionaire).
Jimmy J