CRUCIAL Knowledge about TA.

[Joab]

Quote from alex.samant:

Joab: What you haven't learned in your 20 years of god knows what is to be tolerant of other opinions. My post was by no means putting anything in a box. It was meant as a discussion about adopting the type of TA that mostly suits your trading style.

Be like a reed bend in the wind but be strong enough to not break.

 

[Eddiefl]

Steve T. post pretty sums up 50% of trading, the other 50% is DISCIPLINE.

Keep it simple.

EF

 

[NihabaAshi]

Quote from rcanfiel:

Yes. In spite of opinions and recommendations from others in its favor, it does NOT work. There is likely merit in pure price actiom. This is a much better way to focus on learning to traed...

Read this wikipedia page on Tech An. http://en.wikipedia.org/wiki/Technical_analysis

Read the book by Aronson on TA. He and many others come to the conclusion that TA does not offer much value.

Quote from Steve Tvardek:

I beg to differ. TA, even the classical patterns in books gives you a basic idea of patterns that the mkt prints time and again. BUT, learning to trade them I think works really well AFTER you've learned to read price action.

For instance, you see a "cup and handle" forming. Now TA alerted me to a pattern forming on the chart, HOWEVER the underlying price action will determine if I will place a trade that will breakout and bring the C&H pattern to fruition or, I see the price action showing me that the pattern will fail and therefore I fade it. The synergy of the two creates opportunity to profit.

RC, you cant be so one sided on TA because TA is there to work for people who make it work for them. I agree, just buying or selling a pattern w/o any observation into what formed the pattern will likely give you mixed results at best.

Stever,

You need to be very carefully (others too) when debating about the value of TA with rcanfiel.

Re-read his sentence very carefully.

First he saids TA doesn't work then he follows with the statement that there's value in price action.

Simply, he's intentionally removing aspects of TA that works from the picture so that he can say TA doesn't work.

He's been doing the following like statements since he's arrived at EliteTrader.com:

* TA doesn't work

* Trendlines, s/r levels and many other price action analysis are not TA

With that said, what really is occurring with rcanfiel is that he wasn't able to get one aspect of TA to work...

Traditional Indicators (e.g. stoc, macd, cci et cetera).

Yet, to do a little grand standing and to be argumentive...

He announces that all TA doesn't work along with stating other forms of TA are being excluded from his research/debates...

The stuff used by profitable traders.

He once stated that those with verified proof of being profitable while using TA are probably just lucky.

Steve, all the TA you have described is excluded from his arguments that TA doesn't work so that he can maintain that facade that TA doesn't work.

He also stated that if it can't be coded for testing by a computer...it's not TA.

Simply, his exclusion tactic implies he knows TA works and he doesn't have the guts to admit such a fact...

Something that would destroy all these years of him testing and debating about merits of using Technical Analysis...

He's pssst off, venting and prefers arguing.

It's funny to see him enter threads that's talking about price patterns (it's happened twice) and he goes on record to say it has value and he's interested. However, as soon as you tell him its TA...he will soon disappear from the thread to never be heard from again in that thread.

Mark

 

[StillStanding]

if aronson says that no single TA indicator works what combinations might work? any experiences to share?

 

[alex.samant]

the only thing that works for sure is that price moves up or down at any time the mkt is open

 

[infolode]

Quote from alex.samant:

the only thing that works for sure is that price moves up or down at any time the mkt is open

Don't forget sideways.

 

[MarkBrown]

Quote from infolode:

Don't forget sideways.

thank goodness it does go sideways! mb

 

[StillStanding]

so now that we have established that it goes up, down and sideways, so what. everyone knows that.

 

[Steve Tvardek]

Cant ever underestimate the importance of discipline, I agree wholeheartedly.

Quote from Eddiefl:

Steve T. post pretty sums up 50% of trading, the other 50% is DISCIPLINE.

Keep it simple.

EF

 

[WAEL012000]

Quote from NihabaAshi:

Stever,



* Trendlines, s/r levels and many other price action analysis are not TA
Mark

I am sorry but I agree with him that price action AND volume analysis are not TA. I also think that understanding and analysing volume in relation to price should occupy not less than 75% of your trading decision.