CRUCIAL Knowledge about TA.

Technical analysis, Is not for everyone

Some use it successfully and some don't .....it's that simple

the problem I find with technical analysis is all different oscillators out there

They all lag behind price ..........

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How could Macd, Stochastics , Parobolics etc . be so dam popular if people will truly understand this ?

they are all lagging indicators ----

You have all head this said before in here
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The only leading technical style is to learn Candlestick Formations and to
couple it with significant lows and highs with the higher time frames bar charts
Daily , Weekly, Monthly , and Quarterly charts
 
6jmyyw0.gif

British Pound/Usd Elliott Waves Chart

Technical Analysis applied -
( No Oscillators )
 
marketwavez! What are you doing outside the premises of the FF forums??
Just kidding mate, welcome aboard!

Nice chart (I'm assuming it's pointing bullish). I'm long GBPUSD, great action so far this morning. :)
 
Quote from hcour:

<B>What you need to know about DISCRETIONARY TRADING is that it is mostly based on recognizing chart patterns, support and resistance to evaluate trend continuation or reversal.
This style of trading has the advantage that it can be applied on ANY market, ANY timeframe at ANY POINT IN TIME.</B>

Alex,

I hope this isn't OT. As a still-struggling discretionary trader I get confused about <i>how rigidly</i> one sets the rules for taking a discretionary trade. Those rules can't really be set in stone, can they, because of that discretionary aspect? Say, as a "for instance", one has decided one of the setups to trade is the pullback following the breakout of a range. Now there are all kinds of bo's happening all the time. So one has to set some criteria, to a degree, for instance: 1) The range must have built up sufficient "cause", time-wise, for the expected trend move that is to follow that you wish to play, 2) the range must be exhibiting accumulation rather that distribution, because if it is the latter, one would expect the bo to fail, to be an upthrust, 3) the retracement must have certain characteristics, say, it should be shallow, 50% or less, on narrow spreads and low vol, the closes on the bars should be positive, near the highs, and so on... But even w/in these "rules" there is a discretionary aspect, yes? So you can never really make anything definite, there will <i>always</i> be that subjective pov. This is what perplexes me as I try to pin down a discretionary trading plan.

Harold
More...


Harold

What works for me, is learning to "characterize" a market..For example, one way of characterizing a market is taking intraday data and exporting it to a spreadsheet, detrending it, and then looking at how price jumps from one price point to another. If you do this for a couple of weeks (or months) worth of data, eventually you develop a sense of how big the average move is, how often that market trends, AS WELL AS THE SIZE OF THE AVERAGE PULLBACK BEFORE PRICE RESUMES ITS TREND. Once you know this, you can make some decisions about how to enter a trending market on a pullback.

There are a number of very important things (in addition to what I have pointed out) that a trader can learn from doing that analysis, but this is one that seems important to you.
 
Quote from marketwavez:

The only leading technical style is to learn Candlestick Formations and to couple it with significant lows and highs with the higher time frames bar charts Daily, Weekly, Monthly, and Quarterly charts.
More...

I agree with most of your post but to clarify a point you are making.

Candlestick formations are only accurate when they are used on consistent charts. Daily, Weekly, Monthly, Quarterly or even Yearly charts are consistent in time but not in volume and are . . . just ok.
If you want a more accurate read on Candlestick formations use Constant Volume Bar Charts and use a large volume number to represent a chart that is close to those time based charts. You will find the Candlestick formations will be more accurate and more consistent.
 
Quote from marketwavez:



the problem I find with technical analysis is all different oscillators out there

They all lag behind price ..........

The only leading technical style is to learn Candlestick Formations and to
couple it with significant lows and highs with the higher time frames bar charts
Daily , Weekly, Monthly , and Quarterly charts
More...

Candlestick can also be lagging . if you are using the formation on a 10 minute bar you could be 9 minutes behind someone using a 1 minute bar???
 
it's not a race. it all depends on your own personal context in which you are using different interpretations of price action ...

i personally find candlesticks as being too fast and needing supplementary confirmation... that.. i find to be inefficient.
 
Quote from StillStanding:

Candlestick can also be lagging . if you are using the formation on a 10 minute bar you could be 9 minutes behind someone using a 1 minute bar???
More...

Candlesticks lag less when you use Constant Volume Bar Charts.

Also, the information contained on a 10 minute chart (to begin with is noisy due to the inconsistent nature of time) has NOTHING to do with the information contained on a one minute chart.

Trade one chart at a time like it is a single entity. A top on one chart is simply a pullback in a slower chart. If one learns the interaction and pure movemnet of price their trading will improve 100 fold.
 
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