Does Technical Trading Really Work?

Q3D said:
This sounds like marketing to entice new traders. Any stop less than 10 ticks on CL is idiotic with 1 contract, let alone Al Brooks size 10-100 contracts.
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Stops greater than 10 ticks on CL are rarely needed for intraday trading based on a 5-min chart or equivalent if you study the CL price action carefully and develop a plan around certain levels.

And if you're trading range extremes (wide range, not narrow range consolidation in a trend or trend reversal signal), why would you ever need a stop loss greater than a couple ticks? If I sell the high of a range and get filled, I don't need more than 2 or 3 ticks further to tell me the odds that the range is going break are more favorable than the odds that the range is going to hold for at least a 50% retrace back into it.

Trading 10-100 lots CL is beyond what I do at this time. Al Brooks is discussing ES when he talks about 10-100 contracts. 100 contracts on the ES is a fart in the wind. 100 contracts on the CL would gather a bit of attention.
 
NoDoji said:
Trading 10-100 lots CL is beyond what I do at this time. Al Brooks is discussing ES when he talks about 10-100 contracts. 100 contracts on the ES is a fart in the wind. 100 contracts on the CL would gather a bit of attention.
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Hi Nodoji, what is the largest number of CL lots which some other retail trader is using that you have come across? And has that number varied over the years? Thanks.
 
There is no Holy Grail in trading business, period. The only thing that comes close to a Holy Grail is proper risk management.Trading in general is a probability game. Technical Analysis is one of the tools that is used to make a better trading decision, specifically timing the trade entry and exit. The idea is that past actions interpreted in the charts give clues as to what the market could do in the future.

Market Technicians believe that markets have memories of prior price discovery. Technical analysis allows you to better estimate where the price is likely to go based on prior price action. Full grasping the tools of technical analysis gives the trader an understanding of the supply and demand, or if you prefer, support and resistance. I recommend reading this Introduction to Technical Analysis guide for more information. You can also reach out to me if you have an questions: https://rjofutures.rjobrien.com/futures-brokers/eli-tesfaye/
 
Don't worry, I drew this red support line in the bears path to stop it.

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I don't believe in supports, resistances or any chart patterns. I'm sure that traders who make the greatest volume of trades don't watch their screens and think 'oh, what a nice support, it's time to buy'. The big institutional investors just follow their own needs and numbers.

But as I have mentioned in some other thread, the technical analysis does work, especially the moving averages proved their functionality. Don't try to stop the frightened bears but why not to follow their path? :-) That's exactly what the moving averages do and once again - Kaufman's adaptive MA is my most favourite one (look at the nice curve): http://www.technicalindicators.net/...ysis/152-kama-kaufman-adaptive-moving-average

The counter-trend oscillators are kind of unpredictable (sometimes they work just fine, sometimes they don't).
 
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