Contradicting TA

[piezoe]

Quote from Nutinsider responding to a Jack Hershey post on ET:
I THINK you are saying "ignore the noise" and just grind the nuts and bolts, right?

Actually Jack learned to write clearly while writing for the I.R.S. In writing about the market, he has been able to retain the same simple subject-verb style, and this is what has made him a master of clear, straight forward, easily understood communication. There is nothing he doesn't know, nor for that matter anything he is unable to communicate clearly.

Consider for example one of Jack's most recent musings, to wit:

"...the whole nine yards of trading to make money involves using what is left (the other 50%) to be able to see the pattern of the leading variable of price.

by looking at this variable in terms of adjacent bars, you find out what was made public at about the same time the DOW Theory was first presented."

Obviously this is the writing of a genius who has taken seriously what he learned while writing for the I.R.S. Need I say more? Need anyone?

 

[Nutinsider]

Quote from oraclewizard77:

1) Never color candles.

2) Look at a higher time frame can be used to see the overall trend, then look to a lower time frame for entries. Note, I am able to use 1 time frame because I have good indicators.

Hey, thanks for the response.

I'm curious about your aversion to colors? Regarding indicators, which indicators better suit swing/position trading as opposed to day trading?

 

[oraclewizard77]

I like to see the whole candle, while not every candle is important, coloring the candles can give you an incorrect assumption of trend since coloring is actually a lagging indicator.

I actually day trade. If I was to hold for a longer term, I would look at the financials of the stock.

As for longer trend, although they are lagging, a cross of the moving averages is important. For example, I think the 50 moving average going below the 100 or 200 day moving average is called the death cross, which is a bearish signal.

Quote from Nutinsider:

Hey, thanks for the response.

I'm curious about your aversion to colors? Regarding indicators, which indicators better suit swing/position trading as opposed to day trading?

 

[Nutinsider]

Quote from NoDoji:

The conflict is a result of the near term lower trend line (LTL) breaking on 9/25, but buyers stepping in with conviction on 9/27 above previous support (656.00).

So you need to take into account your trading time frame and average hold time. If you're swinging for the short term (a few days to a week or so), you have to hold pat until you get some clarity, because YOUR daily trend line broke and it might now become resistance that results in a deeper pullback to retest previous support.

If you connect the July and September pivot lows, you'll find that your broken LTL was due to be tested as resistance at the exact price where the sellers stepped in. And price then dropped back to previous support around 656.00.

This is why candle patterns in isolation can be deceiving. Look at the overall price environment in your trading time frame for a period of time that covers 10 times your average hold time. So if you swing for a week on average, draw your key near term S/R levels from at least the past 10 weeks.

Think I'm in the phase now of attempting to find solid entry points...

 

[college ruled]

Quote from Nutinsider:

So what do you do when you get contradicting indicators?

I'm looking at a AAPL september 27th candle and it appears to be bullish engulfing...then next day its a bear harami.

This is one example, but I'm curious about what you guys look at next when your initial indicators are contradictory? To me is seems choppy and that would be a sign to just hold pat.

Thanks

What do I do? I start flipping thru successive higher timeframes don't stop till I get my answer that's what I do

 

[RedTankEra]

Quote from RangeTrader:

Candle patterns are meaningless. Just pay attention to the engulfing reversals.

Incorrect, don't make bold statements like this when you clearly show ignorance.

 

[NoDoji]

Quote from RedTankEra:

Incorrect, don't make bold statements like this when you clearly show ignorance.

Oh, come on, let him ignore patterns, we have to extract our profits from someone

 

[bone]

It is about time and time frames.

 

[ammo]

Quote from Nutinsider:

So what do you do when you get contradicting indicators?

I'm looking at a AAPL september 27th candle and it appears to be bullish engulfing...then next day its a bear harami.

This is one example, but I'm curious about what you guys look at next when your initial indicators are contradictory? To me is seems choppy and that would be a sign to just hold pat.

Thanks

market trades in bell curves ,if the 642 doesnt hold then we drop to the next bell, wide spot of support is 606 area, if it does hold we retest the 667 wide spot of the present bell..you can use the candles ,tls small timeframes to pinball around on the moves between

 

[Paddler]

Quote from Nutinsider:

I THINK you are saying "ignore the noise" and just grind the nuts and bolts, right?

I totally agree with that, and I suppose I am simply trying to determine what is noise and what isnt. I guess most TA would fall under the category of non noise because it isnt as biased?

Im really not sure, but I'm still reading a lot and attempting to get a better feel of the markets. Regardless, thanks for the response.

Please, you are not supposed to understand his writing unless you are invited to his private circle. He just labelled all ET members as takers except himself. Don't fuck around with this hypocrite.