The lowly MACD would've made you a boatload of cash in 1929.
https://www.tradingtips.com/indicators-that-spot-a-crash/
Maybe you have an issue with that.
Does Technical Analysis Work?
- Thread starter ironchef
- Start date
The lowly MACD would've made you a boatload of cash in 1929.
https://www.tradingtips.com/indicators-that-spot-a-crash/
Maybe you have an issue with that.
So, to translate:
1) You find that T/A works for you.
2) You sell on purple arrows where mysteryblackline turns up.
3) You buy on black arrows where mysteryblackline turns down.
4) You contend that your system outperforms the lowly MACD.
Fair summary?
Summary: everything always works, except for those for who it does not work.
That's a fact.
Yes absolutely
Not quite like that , its just a trend filter that dictates the direction of intraday swings , there are other aspects to system that define the entry to enter trend and exit management
as above
I have been at this for almost 20 years and early in the process when i was green and used only generics like most here i built systems based on MACD , RSI and the like so yeah i know the systems i use will outperform generics on any metric you care to measure your systems on . Smooth fast curves totally testable due to the objective binary properties . its not for everyone of course because its a skillset not easily learnt , building indicator/filters that measure and define binary points accurately allow you to build decision trees that are adaptive and adjust to market conditions , even ones like the last few days ... rock on
No. Not at all.The lowly MACD would've made you a boatload of cash in 1929.
https://www.tradingtips.com/indicators-that-spot-a-crash/
Maybe you have an issue with that.
My point wasn't to tout the RSI or any other TA technique in particular.
I do believe TA works if used correctly. Some only believe it works because it is self fulfilling but yet can't explain how TA works looking back at markets prior to them being "discovered" and made public - as in for example the crash of 1929.
BTW I do also use MACD sometimes but prefer 3/8/13 settings:
I have known a few long-term shareholders, investors they called themselves. Some of them told me TA couldn't work, it had been proven repeatedly and plus there were no rich chartists.
Whenever they became interested in buying a particular share, they would read the company's newsflow, get the Annual Report and read the Chairman's Statement, look at dividend and earnings and sales and brokers' recommendations and all the rest. Then they would ask, what is the price, and they might say something like, hmmm, this is good, it was 50 lower 6 months ago. Well, call me naive, but that sounds like TA to me.
Whenever they became interested in buying a particular share, they would read the company's newsflow, get the Annual Report and read the Chairman's Statement, look at dividend and earnings and sales and brokers' recommendations and all the rest. Then they would ask, what is the price, and they might say something like, hmmm, this is good, it was 50 lower 6 months ago. Well, call me naive, but that sounds like TA to me.
I find TA useful in a larger scheme of things. Fundamentals are also important to define risk.
As usual these discussions originate without qualifying definition so they degenerate into a room full of blind people trying to define the elephant. As a day trader of equity futures, I pay no attention to fundamentals. My signals come from my charts and my rules from my trade plan. On the other hand if I were to put together a basket of stocks, both long and short to be held from days to months then yes, I would want to examine the fundamentals of the underlying issues.
Thank you for the link and thanks for the advice.