That's all you needed to say. Could have skipped the rest of your post.
Do large banks and institutions use TA to profit?
- Thread starter londonkid
- Start date
That's all you needed to say. Could have skipped the rest of your post.
Ok. I've got a moment here to elaborate on the full analysis of Friday's daytrading. This is a demonstration of how I use TA and this is exactly how I trade in real time. First, we look here at the 4 hour chart to determine overall short term trend. We can easily define the trend as long well prior to Fri's huge "reversal".
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Next we look at hourly or perhaps 30 minute chart to look for oversold condition and reversal pattern since we are looking long. Notice how the 60 minute chart exhibits a deeply oversold condition on the initial sell off and indeed one bar is outside of the bollinger bands indicator completely.
Now let's look at our entry and exit chart, the 5 minute. We have deeply oversold conditions with reversal and bottoming patterns. It is HIGHLY likely that the next move will be up when considering the information that we have gleaned from the 4 hour, the hourly and the 5 minute chart. ALL charts agree in upside movement. Stop placement is a proprietary formula that I will not reveal, but notice how the stops are outside reaction lows. That's the real edge in trading--using proper risk management. Couple that with proper TA (specifically RSI) and you have the holy grail.
So what's your prediction for today?
He will tell you in hindsight, like he did in the charts above.
But I would never give any valuable information to non TA believers, as they don't believe in TA, so what's the use to predict for them?
You are not consequent. You don't believe in TA so don't ask anything about TA.
What's "consequent" is: a casual reader of this and similar threads would think B1S2 et. al. were making real time calls, and had actual predictive skills.
Laughable. Most here know that I have been making real time calls since I signed on in 2006. There are others that do as well, most notably, Romik
Analysis today is that the 4 hour chart while being in uptrend is nearing overbought levels. 60 minute exhibits topping and reversal action. 5 minute chart has pulled back but not violated this mornings reaction lows around 1968. -- So overall, we would be looking to go long once the 60 minute resolves it's topping pattern AND the 5 minute exhibits oversold conditions. No trade right now. We can also sell the 5 minute if we get overbought conditions on the 5 due to the 60 minute topping and reversal pattern. We have neither situation so there is no trade to be taken right now. We must be cautious here with the 4 hour RSI where it is but there has been no definitive top yet on 4 hour . Keep in mind, no matter what is done, the real key is risk and money management. This is the last I will post analysis in this thread as it is not consistent with the thread title theme. I will post analysis elsewhere.
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