Charts Patterns are not correct

[Trend Following]

Quote from RCG Trader:

Meet a successful chartist.

http://www.youtube.com/watch?v=dsrOXJwGwtk&feature=related

Is this the PBS documentary on LTCM?

 

[Blotto]

Quote from Crispy:

For clean charts I suggest rolling your own from scratch in excel with closing or last prices only. I use a REDI+ addin and check closing/last sales with yahoo for a double check next day.

Its not for the lazy though. I have 10 issues with several time frames that I adjust every morning manually. Takes me 30 mins just to get proper color for the days setups. However, the manual process gets in your blood. I cant foresee a days trading without watching those levels move as I add and remove data.

Its much more organic than simply turning your software on imo. And after a few months you are truly one with your data and numbers.

One of the best posts I've seen on these boards.

Of course it goes largely unnoticed, which tells you everything you need to know.

 

[RCG Trader]

Quote from Trend Following:

Is this the PBS documentary on LTCM?

Yes it is.

 

[RCG Trader]

Quote from marketsurfer:

@RCG

Real time, before the fact calls only, please.

Otherwise, I have no interest.

Thank you.

Yes, real time before the fact, days before sometimes.

 

[Trend Following]

Quote from RCG Trader:

Yes it is.

Were you sourcing it as a positive trading approach?

 

[marketsurfer]

Quote from Trend Following:

Were you sourcing it as a positive trading approach?

RCG stated the movie was an example of a succesful chartist.

Truly a bizarre and completely spurious correlation.

 

[RCG Trader]

Quote from marketsurfer:

RCG stated the movie was an example of a succesful chartist.

Truly a bizarre and completely spurious correlation.

Geez, no wonder u struggle. Not the movie son, the trader at the beginning who traded upstairs, he used charts, and it was displayed as such.

Surf there are days when I think you u r being obtuse on purpose.

And LTCM was right insomuch as their mean reversion strategies, but options require timing. No chart, and you have no idea of when the bough breaks, so the cradle falls, right on top of ur little pointy head

 

[RCG Trader]

Quote from marketsurfer:

I'm not surprised at all. You would be shocked at the number of traders thru the door at my old firm with actual verified statements showing great returns who were not profitable from DAY1 once funded, and didn't even last the first month.

Literally, out of 100 plus over 3 years, only 1 consistently made money and it was with an unduplicatable edge.....

I'm suppose to accept annontated charts as "proof of concept"? Is this a joke?

best,

surf

PS-- why don't most prop firms ( who need you to be profitable to survive) teach "charting" ? And if they do, its way down the list of methods taught and is for illustration generally--- However FX dealers, like GFT, have huge educational divisions for Charting/TA but they make money from your losses, not wins,,,,,,hmmmmmmmmmm

Because a competent chartist will never trade noise, that is why.

 

[murray t turtle]

Quote from ligerny:

I've been looking on various platforms(Esignal, Thomson, thinkorswim, openecry) and i've noticed while looking at futures charts that the candlestick formations look different with each software. I've missed good oppurtunities because on one charting software it doesn't show a reversal bar, on another software it does.

Why is that? Is the market data bad? On what software can i get an accurate chart/data to do analysis on?

=======================
Lig;
Found the following most helpful.

Record your own data[lots of it];
especially in two or few markets , may prove helpful. I consider wrong price data, or wrong volume data more serious errors than a lack of a ''reversal candle''/noise.

Note, now, if you had recorded [years/decades/written it , yourself]hi/low/open /close especially/especially close;...................................................
reguardless of ''candlechart reversal '', you solved that problem.

I am not saying volume is absolutely necessary in any market;
but as far as probabilities[not exactly prediction];
I saw no candlechart reversal in Southern lake/riverfront property. Sure long term its still up;
but medium trend is down/bearish, shorter trends are down.

But the volume, combined with dropping bid/ask,
combined with much data,[my decades of data, thier data]
showed a tidal wave of waterfront sales[a ''flood one '' dealer called it] proved helpful.

 

[marketsurfer]

Quote from RCG Trader:

Because a competent chartist will never trade noise, that is why.

This is another classic misunderstanding.

In reality it's all a pure chartist has. All is noise, noise is all.

See investopedia below, or believe the various chart art guru types made up definitions---your choice


<b>Most people are considered to be noise traders, as very few actually make investment decisions solely using fundamental analysis. Furthermore, technical analysis is considered to be a part of noise trading because the data is unrelated to the fundamentals of a company.</b>