After using this trading simulator I'm convinced technical analysis simply doesn't work

[Spectre2007]

Good, but isn't something missing? Like how that is related to the topic of this thread?...

support/resistance is the bid/ask, he stated it doesn't work, but its at the core of price discovery.

 

[nxt7]

support/resistance is the bid/ask, he stated it doesn't work, but its at the core of price discovery.

I didn't outright say S/R doesn't work. Just that often it gives false signals where you expect the price to go up but then out of nowhere a massive down tick completely destroys the trend.

I can show you examples if you want.

 

[dartmus]

Important: the bar-size plays a big role, ie. the timeframe of the bars like 1-minute bars, 5-minute bars, EOD bars, etc...

Not if you're still using that synthetic data u were using last month.

Important: if u are then nothing matters. Then nothing's important or unimportant.

 

[botpro]

Not if you're still using that synthetic data u were using last month.

Important: if u are then nothing matters.

What do you mean?
Just look how weekly or monthly indicator values differ big, compared to daily indicator values... best is when plotted on a chart...

 

[i960]

Chart game is cool but a major problem with it is the total lack of context and CONTEXT but with the instrument and market environment is important.

 

[dartmus]

What do you mean?

Do you have real time data or are you still using synthetic data?

If you are still using synthetic data then there's no point in continuing further into the logic ....

 

[botpro]

Do you have real time data or are you still using synthetic data?

I have all the time had and still have both.
So, why do you ask such an off-topic question?

You better shouldn't ask questions you certainly wouldn't understand the answer.
You have no clue what "synthetic data", ie. GBM data is. It is used by professionals.

 

[eganon69]

http://chartgame.com/

(Edit: The game in the link above loads up historical data of real stocks. You trade at a particular snapshot in time of the stock's performance.)

I don't mean to cause any offence to those who frequently use it here, but things I've learnt after having a play with this for several hours:

- Short/long term crossovers don't work unless you just use it to buy/hold for the long run. Even then, plenty of whiplashes undo your gains....
- Support/Resistance works sometimes but not most of the time..
- Chart patterns rarely work...
- MACD, RSI and ADX just gives too many false signals...
- Buy/hold wins everytime if you're "lucky" to hang on to a good stock....

Mind you this is just a simulator. If it were actual trading I would have probably lost my account several times over + broker fees.

Whether its years of experience staring at charts and eventually "seeing the light" or just being lucky every time, it leads me to wonder how some people find success using TA at all....

Now I still want to believe TA works and that its probably me not using it properly. But after this, kind of wondering what strategies there are left that give one the "edge" after months/years of experience...

If a blind man can not see does that mean eyeballs are useless?

 

[botpro]

If a blind man can not see does that mean eyeballs are useless?

A very philosophical question, inded...

 

[dartmus]

Synthetic data is created by an algo that is different than the algos which create the real data.

Why do u have the synthetic data? This leads me (and others) to conclude the concepts u talk about are as equally flawed as your accusations that I and others were data vendors because we tried to help u see the difference between these algos.