Forex and TA?
- Thread starter cashclay
- Start date
Big moves begin when fundamentals change.
The more people join, the stronger and longer the trend will last.
When there's little news, price moves only to fill the pockets of a few big players.
Take NFP on friday as an example.
Elitetrader is divided in TA lovers and haters, so expect anything
TA should be able to give clues about the setup and intention of the big guys.
Traps, misdirection and timing make it a difficult game.
The more people join, the stronger and longer the trend will last.
When there's little news, price moves only to fill the pockets of a few big players.
Take NFP on friday as an example.
Elitetrader is divided in TA lovers and haters, so expect anything
TA should be able to give clues about the setup and intention of the big guys.
Traps, misdirection and timing make it a difficult game.
Yes.
As evidenced in practice by the people who have been making their full-time livings, some of them for decades, through forex trading by TA.
Now you're asking about "moved through", rather than "traded through"?
I appreciate that you're very new to trading, and I'm not trying to give you a hard time about your wording just for the sake of it, but what it perhaps shows (here and in other threads) is that you really don't yet have a clear grasp of the underlying realities of the markets. Here's the thing: in all markets (and forex is no exception), prices move as a result of imbalances between buying-pressure and selling-pressure. This is basic to all financial instruments, and to all trading. Fundamentals are already included within technicals. Fundamentals don't in themselves move prices at all; prices move because of human sentiment and behavior in response to fundamentals and in response to other human sentiment and behavior.
I say TA isn't real, it's a trick to give you false hope it gives zero predictive value so NO, ofcourse you can argue for years what is and isn't TA, TA that doesn't work isn't TA, but the TA that works does, but nobody can pin down the working TA so I call BS!
Momentum is key, trade with the underlying Momo at the time, and change when it changes, KISS!!
Momentum is key, trade with the underlying Momo at the time, and change when it changes, KISS!!
Trade however you want;
Don't become too obsessed with labels, names, ways, techniques, etc etc -- in my opinion...successful trading is a very grey area, a loose hybrid of a combination of things.
Don't become too obsessed with labels, names, ways, techniques, etc etc -- in my opinion...successful trading is a very grey area, a loose hybrid of a combination of things.
Turveyd,
During my studies I have found that backtests of well established and clean lines in TA have predictive value; particularly the initial test.
Attached is a recent example of one preventing SP500 and its current momentum (at the time) from moving forward.
All very informative, if they don't hold, price is telling you something, it's key to be adaptive.
During my studies I have found that backtests of well established and clean lines in TA have predictive value; particularly the initial test.
Attached is a recent example of one preventing SP500 and its current momentum (at the time) from moving forward.
All very informative, if they don't hold, price is telling you something, it's key to be adaptive.
Attachments
I agree with Onra
for decades and that controversy still on the wok between TAs & FAs
And to answer your question is in the question itself
Trade the market fundamentally and enter/exit technically
But the issue is, your spotting coincidental line ups after the event be objective, how many other lines can you draw which causes bounces.
After the event, everything is easy, before not so much.
This is my current method, M1 trade with the 42sma's direction, using a BB 10 2.2 setup, if 42sma up then look to go long low of BB. No SL currently, reduced Lot Size to risks acceptable.
Funny you say that, I had the line before the sell off. Unfortunately, we did not touch it so was not able to get filled as high as I wanted to. I was able to notice the push and react but it was not an optimal as it could had been.
Notice I did specify "clean lines", many technicians go nuts plotting them.
Good trading to you.
Notice I did specify "clean lines", many technicians go nuts plotting them.
Good trading to you.
Big moves begin when fundamentals change.
The more people join, the stronger and longer the trend will last.
When there's little news, price moves only to fill the pockets of a few big players.
Take NFP on friday as an example.
Elitetrader is divided in TA lovers and haters, so expect anything
TA should be able to give clues about the setup and intention of the big guys.
Traps, misdirection and timing make it a difficult game.
Completely agree with you, there is only a handful of traders out there that do understand this "fundamental" concept, trends starts on fundamentals, and end on emotions.
Another thing I would add to the first question is that you should focus your research on 80% fundamental and 20% Technicals, so TA is important, sure, but not as.
It seems that fundamental analysis is misinterpreted as well though, the only keyword you should search for on google is this one : Macro economics.