Bullshit

[semperfrosty]

Hey Mike, you have to drop it down a step.
Please follow me.
The Price is not just the Price. No, it's the Price that buyer and seller agreed on.
And it may have happened in multiple trades, unrelated traders.
That's why the Volume is significant, but less than the price.
***
Back when we used to create charts by hand (Swear to God),
The price (high, low, close) was ALWAYS in ink.
Trendlines were in pencil.
That's why they are not surefire signals either.
We had RSI(14) on the weekly charts (Mansfield Chart Service)
That was a shopping list for swing traders in the office.
***
A chart is just "footprints in the sand".
It's the summation of the buy and sell decisions.
Now we have all kinds of other tools.
The Oscillators are mathematical derivatives
of the price, price movement (MAs) and maybe volume (OBV).
It's soocool to get all of that,
in a little app like stockcharts.
And I AM NOT shilling for them.
Lots of other ways to get charts (but most have less of something)
Just sayin'.

Salute to the manual chartist!

I started out plotting daily price bars on the chart each evening.

I'd like to say that 'those were the days' but that wouldn't be genuine of me.

 

[Frederick Foresight]

...Volume, in the strictest sense, ain't no T/A. It's just a cumulative count of all the shares or lots traded for that particular time period.

...Support/Resistance and Trendlines are not T/A. They belong to Price action or simply P/A (although there are a few here who call it "Price action TA", whatever that means ).

Sorry if I went overboard with needless formality, but it seems like everything is thrown under the T/A bus these days.

I understand where you're coming from but, for what it's worth, I don't think John J. Murphy would agree with you.

In my own opinion, I think PA is the purest form of TA and would include S/R. All the other stuff is mostly just filler that arguably delegitimizes it. Just my 2¢.

You say tomato, I say tomahto. (Actually, I never say tomahto.)

 

[SunTrader]

So price data is TA but volume data isn't? Hmmm

 

[SimpleMeLike]

Before you go any further, can we get the jargons straight?

Volume, in the strictest sense, ain't no T/A. It's just a cumulative count of all the shares or lots traded for that particular time period.

On the other hand, indicators like Moving averages are T/A. So are oscillators like Stochastics and MACD.

However, Support/Resistance and Trendlines are not T/A. They belong to Price action or simply P/A (although there are a few here who call it "Price action TA", whatever that means ).

Sorry if I went overboard with needless formality, but it seems like everything is thrown under the T/A bus these days.

Good Morning schizo,

How do you personally define and quantify statistical edge in your trading using TA, PA, etc. etc.?

 

[murray t turtle]

"Technical Analysis works the same on all timeframes and for all Assets".

I find the above statement to be a Myth.

T/A seems to work differently on different timeframes and for different Assets to me. Maybe I'm wrong. ie. Volume works better on longer timeframes than shorter ones, Stocks react differently to Indexes etc etc.

EXACTLY right ;
because markets differ a lot.
Stainless steel + brass e seldom rust;
union made AUTO is eventually + usually headed for junk yard \scrap
Problem with excluding volume = no order =no trade with out any volume, any market
I ink my ma trendlines or have printer= she does ink it LOL

 

[schizo]

I understand where you're coming from but, for what it's worth, I don't think John J. Murphy would agree with you.

In my own opinion, I think PA is the purest form of TA and would include S/R. All the other stuff is mostly just filler that arguably delegitimizes it. Just my 2¢.

You say tomato, I say tomahto. (Actually, I never say tomahto.)

Most TA traders, if asked, would tell you everything about how you can trade the moving averages and the Stochastics, as well as the RSIs and all other squigglies under the sun. This is where you get in when it does this, and this is where you get out when it does that, blah, blah.

Now ask him, "Can you tell me how to trade without any of those squiggly lines?" Go on. See what he has to say. I bet you'll get a blank stare.

 

[Frederick Foresight]

Most TA traders, if asked, would tell you everything about how you can trade the moving averages and the Stochastics, as well as the RSIs and all other squigglies under the sun. This is where you get in when it does this, and this is where you get out when it does that, blah, blah.

Now ask him, "Can you tell me how to trade without any of those squiggly lines?" Go on. See what he has to say. I bet you'll get a blank stare.

Yeah, you're probably right. But that's because someone left the door open and let all that other stuff in.

But I still think S/R is PA as it relates to breakouts (not that all breakouts are created equal.) And although I seldom look at volume, I still think it relates to PA.

In any event, more broadly, "Technical Analysis is the use of historical market data to predict future price movements. Using insights from market psychology, behavioral economics, and quantitative analysis, technical analysts aim to use past performance to predict future market behavior. The two most common forms of technical analysis are chart patterns and technical (statistical) indicators."

https://www.investopedia.com/terms/t/technical-analysis-of-stocks-and-trends.asp

For my own limited purposes, I think most indictors and patterns are not worth the bother.

 

[wxytrader]

"Technical Analysis works the same on all timeframes and for all Assets".

I find the above statement to be a Myth.

T/A seems to work differently on different timeframes and for different Assets to me. Maybe I'm wrong. ie. Volume works better on longer timeframes than shorter ones, Stocks react differently to Indexes etc etc.

inb4 T/A doesn't work at all.

Volume is probably the most useless indicator. The only sure thing is the elusive Gartley cipher.

 

[Darc]

Take the SPY for example; does a 1 minute Chart react similar to a Daily or Weekly Chart.

Then there's Patterns, individual Stocks seem to adhere to Patterns ie VCP a lot better than Indexes due to Volatility.

 

[mikeriley]

Good Morning mikeriley,

How do you personally define and quantify statistical edge in your trading?