hmm.no edges in the markets

[bwolinsky]

Quote from marketsurfer:

Thanks, makes sense to me. Basically it's an attempt at reversal to the mean type ideas via an illustration ( candlestick)rather than numerical calculations. Seems very vague and open to interpretation.

Would I be too far off to say charts and candles are attractive to left brain folks more so than right brainers? Left and right brain meant in the traditional sense, not scientific facts.
surf

There is no mean reversion in arbitrage. There is a price, call it apt, and an entry point, if apt is at least far enough away from your statistical analysis of plain autotraded stops and targets then apt if bigger enough than the entry point should be when to put on the trade.

There's a little more data in the candlestick from o,h,l,c and using those is only a matter of computing your targets really, and all else the opens and closes are what you'll end up with as you decide which data to use in your projection. The projection does not assume mean reversion but trending and as I've had the experience trying to explain this analytical difference between mean rev and trend we shouldn't say much more than that there is a difference which is exactly what you'd say.

 

[marketsurfer]

Quote from dtrader98:

While I agree with that statement from only looking at a drawing... the concept is objective enough to be testable in an objective manner. I don't think they are looking at the concept in isolation, however (lots of other undisclosed thoughts are going into the decision making process); things like that are what make TA generally vague, and difficult to reproduce.



Exact opposite. Recall left brain is analytical, number crunching type; right brain is visual, artistic, intuitive type. I see left brain types as more logical, objective, quantitative oriented analysis, while right brain is more intuitive,subjective visual TA analysis. Each has strengths and weaknesses.

You could argue, both types are more left brain than the general population. But if I had to put them in a basket and make the division, that's how I would see it.

Yes, I had the brains reversed. Thanks for the correction ---

Years ago some quants and I tested the basic candlestick patterns as described on lit wick.com--- there was nothing significant that couldn't be ascribed to randomness.

 

[Redneck]

Quote from marketsurfer:

Can someone explain to me exactly what is illustrated in a long candle wick? I understand buyer or seller exhaustion, but exactly what does this mean? Can anyone precisely define what price does to create the wick.

surf

Buyers drove it up...

then

Buyers thought nope, and began exiting

and/or

Sellers said hell yeah and overpowered

One candle does not a story tell - but together

Wicks on top reflect weakness - or price being held down till the transfer / position is complete - or even supported till the transfer/ position is complete

Gotta read the entire story up to it.., not one page


RN

 

[Redneck]

Quote from trilogic:

this thread has been deemed useless

Buzz kill

Go study today's chart for Christ sakes - and make notes

RN

 

[wrbtrader]

Quote from Redneck:

...One candle does not a story tell - but together

...Gotta read the entire story up to it.., not one page


RN

Yep, gotta read the entire book and not just a few pages.

 

[Redneck]

Quote from marketsurfer:

Would I be too far off to say charts and candles are attractive to left brain folks more so than right brainers? Left and right brain meant in the traditional sense, not scientific facts.
surf

One needs to be centric (or right/ left balanced)

Having a dominant side - you're screwed (I know as I had one, and had to reset)

RN

 

[wrbtrader]

Quote from marketsurfer:

Yes, I had the brains reversed. Thanks for the correction ---

Years ago some quants and I tested the basic candlestick patterns as described on lit wick.com--- there was nothing significant that couldn't be ascribed to randomness.

Please stay away from them codes of candlestick patterns. They weren't design to be used that way and candlestick patterns without context are unreliable.

You should have just read any one of the hundreds of papers by traders that were not profitable and by those that were profitable using Japanese Candlestick patterns. You would have immediately notice the performance difference between coders and discretionary traders of Japanese Candlestick patterns.

Yet, there is one particular usefulness for coding Japanese Candlestick patterns...using such as a dictionary description only to familiarize yourself with their names. Not uncommon to see someone call a Harami pattern an Engulfing pattern or calling a Inverted Hammer Pattern a Shooting Star.

 

[Redneck]

Quote from NoDoji:

Here's a chart with the triangle drawn:

show off

RN

 

[Tonkadad]

Quote from Redneck:

One needs to be centric (or right/ left balanced)

Having a dominant side - you're screwed (I know as I had one, and had to reset)

RN

Can you share more on the reset part?

 

[Redneck]

Quote from austinp:

Trading key S/R zones while ignoring all else is much like stealing...

You took a little heat with that green bar just after you entered (8 min in) - way to hang in there


========================
There is a lesson here folks

Know your stop - stick to the damn thing

Moving it to BE - look what he could have potentially missed if he had been stopped out, then had to re-enter


RN