Edwards 'n' Magee = useless for daytrading?
- Thread starter traderkay
- Start date
I hadn't intended to reply to this post. It stands on it's own. But I see you're taking a few shots here from Daniel, who has directed his post to newbies. So I thought I would just say that I thought your post was excellent. You use many of the same "indicators" as I do, and have for years.
Likewise, as I have posted elsewhere, I don't like having the "other" package type indicators "polluting" my chart as you say....because as you so correctly point out they have the ability to influence your actions at just the wrong time.
Good post. Newbies would be well served to read your post, and see how they might be able to implement it.
OldTrader
Well, I didn't say that it "all" works, or that making "it" work is as easy as the books sometimes make things look. I should perhaps add, if it I didn't make it clear earlier, that I only occasionally trade directly off TAST-type patterns: My main set-ups are unique to the intraday time frame. I'm just willing to acknowledge that the reasoning behind them has similarities with the classic E&M approach.
Otherwise, I share your skepticism about most "indicators," though, as other contributors have noted, TAST fits within this category only under a very broadly inclusive definition of terms. It may not be very helpful, at least in this context, to equate, e.g., "Falling Wedge" with "MACD."
Well. here's a chart I happened to clip and save a few months ago, based on a formation we discussed "in realtime" in the ET chatroom. It illustrates a classic-style flag breakout - as well as some Fib projections and re-tracement, some S/R action, and some TICK stuff. (Um, don't get the idea that the discussion in the ET chatroom is always, or even very frequently, this TA-intensive.)
The color-coded "paintbars" have to do with shorthand readings from a TRIN-like indicator that I use.
As I run across other examples in my files, I may post them here, or I may even start putting them in an ET journal one of these days.
Well, Old DUDE, he wasn't really taking "shots" from me - I think I just posted the patently obvious; that just because Nitro hasn't found any way much use for that kind of T/A it doesn't mean it's WORTHLESS, and usually means that the person saying it hasn't found a way to use it profitably.
Now, I, personally, actually trade in a way very similarly to Nitro (judging from his post - except i don't puff myself out trying to get .05 out of GE
). BUT, I do know of people who use those same "canned" indicators AND they make money. Whether it's their T/A or their experience that's makig them the money, I do not know, but SURELY someone's that's traded for 35 years - even some that's traded for 3 years - should know that there are no hard and fast answers on what to look at.The other thing I think a lot of people don't get, is that the "A" in TA stands for "analysis". To me, this means that the technical information needs to be "analyzed", not just "buy on green, sell on red". Again, I know some traders who put a lot of work into their technical ANALYSIS (they are not daytraders), and then make trades based on this analysis. Seems to be working for them. THEREFORE, we can all post our opinions, but to categorically state that "this is right, that isn't", is kinda stupid wouldn't you say?
On the 1-min NQ, you just saw a head & shoulders play out, with stops run to the downside on the neckline violation @ 885, then when ES (which is the weaker sister today) didn't confirm that downmove, those playing the H&S got their stops triggered and hence the spike up to 889. Dangerous stuff.
There's always a danger in believing that those who agree with us have it right, and those who disagree with us are hopelessly misguided. Rather than try to herd newbies into one camp or the other, why not suggest that they study both Daniel's and Nitro's posts and make their own decisions based on their own experience?
--Db