A question to people that don't "believe" in TA

Momentum> Hi TA and Fundamental.
TA & Fundamental> Hi Momentum, good to hear from you.
Momentum> Happy to meet you both again.
Fundamental> Buy and hold is king, example Mr. Buffet.
Momentum> Fundamentals is for the lazy.
TA> Agree.
Momentum> TA, I heard many people are using.
TA> Sure, because it was working fine and we had a lot of success.
Momentum> Many technical analysis is junk, too much progress on its development and become more complex and far from the reality. Let get down to basic.
TA> Silly. What are you talking about?
Momentum> 1. Design your own system to detect a fast moving train.
2. Try to jump on it.
3. Bear in mind that the train will crash soon in the near future. Don't hold the bag.
 
Quote from optioncoach:

Tape reading is helping to find entry points but the "levels" you are talking about are still derived from price action as in TA, especially pivot points. There is nothing wrong with that, but no need to deny that TA is being used.
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So, you're telling me that eyeballing the chart and drawing a line where a stock stopped going up qualifies as TA?
 
Quote from optioncoach:

If you are taking past price action to calculate a correlation as a basis for buying the one you trade, isn't that a form of TA? Using past price action and finding a pattern and trading off of it?
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I agree. Using past price action (and/or volume and/or breadth, etc.) in any way to arrive at trading decisions in the present is TA. It does not matter how you do it. The how is simply a matter of form.
 
I've traded the same profitble automated system for 4+ years. No TA, no Arb...solely price action (no historical data). Not to mention another less profitable system that also only uses price action. It could all be done without charts.
 
Quote from optioncoach:

If you are taking past price action to calculate a correlation as a basis for buying the one you trade, isn't that a form of TA? Using past price action and finding a pattern and trading off of it?
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You have a good point, but you can find correlation without looking at historical prices. For example, you watch a basket of stocks that together make up 90% of an index, but you trade the index future. They have to be correlated, and you don't have to look at historical data to know that.
 
Quote from Thunderdog:

I agree. Using past price action (and/or volume and/or breadth, etc.) in any way to arrive at trading decisions in the present is TA. It does not matter how you do it. The how is simply a matter of form.
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I would not call a baysian learning system TA, just probability. But maybe I'm wrong.

Edit: I guess baysian learning would be used for market making, and you guys wouldn't call that trading I guess
 
Quote from FaderTrader:

Someone above said that daytraders use TA? Not any successful daytraders that I know. Granted some might plot moving averages, but real TA is of greater use to swing traders (oscillators, multi-time frame analysis, MA's).

I trade solely off of the Opening Range and the Daily Pivot Range. Before you scream, "TA!!", I'll say that I ONLY enter trades based on the tape.

Daytraders who know how to read the tape, in my experience, have a much higher rate of success since you can see when a level is going to be penetrated rather than just giving away money by getting stopped out.
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What a wonderful post. I mean that sincerely, not a slam.

I do want to add a thought to it though. Tape reading is TA when it is done correctly, IMHO.

My opinion is based on the Tape being a "technical" print on an individual Market and the "analysis" being ones ability to "read" the print. The Opening Range or Daily Pivot Range is based on the "Tape" . . . PRICE!

There are many that have added to TA over the years with indicators like MAs, RSIs, CCIs, Fib, Gann, Elliott, etc., but all they have done is muddy the waters. They have clouded the beauty and simplicity of the TAPE!

Rock On Fader. We probably don't agree on the path but the destination is the same.
 
Let me ask an unusual bigger question since many trading systems out there can get quite advanced in the formulas and whether it uses TA or not is a distant second to whether you are making $$$ off it..

Are there people who wish to distance themselves from the use of the word "TA" in their approach because it has some negative stigma? This is a question and I have no bias or pre-determined answer. Just wanted some opinions from the masses. TA always carries with it some baggage in discussions.
 
This could be very detrimental to your health ...
Quote from bitrend:
...
Momentum> 1. Design your own system to detect a fast moving train.
2. Try to jump on it.
3. Bear in mind that the train will crash soon in the near future. Don't hold the bag. [/B]
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I agree with optioncoach here. What else would you call it?
  • Quote from FaderTrader:

    So, you're telling me that eyeballing the chart and drawing a line where a stock stopped going up qualifies as TA?
 
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