Amusing thread. Charts, TA, coins and Carver stirred in the same pot. Charts and TA are for newbies. Coins are for scams. Carver is trying to make a Pound/book. Mr. Platt is not selling books but making 115% this year. If Carver was any good he would be working for one of these people. People in the City have made a killing with systematic trend following in the last three years. Books will sell to newbies what can fit in books but rarely works in real life. It's all about identifying the macro trends and religiously following price with good risk management until the trailing stop throws you out. No serious systematic trader had time to write a book in the last three years. They are killing it. Ignore people who sell books.
How to become better at Technical Analysis?
- Thread starter hekktor
- Start date
Best advice I can give:
1) Conventional TA isn't that useful by itself.
2) Don't underestimate your ability come up with new indicators or improvements to existing ones.
3) Multi-Time Frame TA is more important than most technicians discuss.
4) Combining indicators (and time frames) increases probabilities
5) Don't dismiss (but don't overemphasize) cycles and seasonal patterns.
6) Keep tabs on investor sentiment
7) Make sure you don't look at your indicators through a biased lens.
1) Conventional TA isn't that useful by itself.
2) Don't underestimate your ability come up with new indicators or improvements to existing ones.
3) Multi-Time Frame TA is more important than most technicians discuss.
4) Combining indicators (and time frames) increases probabilities
5) Don't dismiss (but don't overemphasize) cycles and seasonal patterns.
6) Keep tabs on investor sentiment
7) Make sure you don't look at your indicators through a biased lens.
You need only remember two things when it comes to TA:
1) TA is only useful when there are "dumber" traders than yourself.
2) By the same token, those who are "smarter" than you will use the above information to set traps to ensnare you and others who are dumber than you.
Thank you! I'll definitely keep this in mind. I've read a book about something related to this (Anna Coulling), where market makers come in cycles. It looked at volume as an additional indicator. I haven't seen myself trading with this framework in mind, though I learned to accept that I can't always buy at the bottom and sell at the peak.
I also think with some instruments, there are long-term investors who will buy regardless if the technicals are not that good, I guess this is where some of the "dumb" traders may come in?
Thank you!
Can you give more details on what you mean by conventional TA? Is it chart reading using subjective patterns like cup and handle?
As for TA on multiple time frames, I recently came across advice that confirmations on multiple time frames are better. On some other examples, I also saw that people will look at the Daily for a buy signal, and fine-tune the actual buy on the hourly when it does opening range breakouts, though I have yet to apply it on my own (paper) trading. I'm also practicing on crypto which is 24h, so I just assume midnight GMT is the opening time.
All the stuff you read in all the TA books, patterns, etc. Many technicians are good at telling you what the market did or is doing but are not good at all at forecasting where it is going. That is why you have to think outside the box when you read all these TA books, etc.
And on the multiple time frames -- yes -- it's something like you indicated. For me, I want to find daily set-ups that combine with my weekly expectations. I have some other time frame combos that I use but you get the idea.
Also, always remember you're trading other people. One thing I'm continuing to work on is getting the pulse of other traders, especially the ones I don't think read the market well, and use that as information.
Best wishes to you.
And on the multiple time frames -- yes -- it's something like you indicated. For me, I want to find daily set-ups that combine with my weekly expectations. I have some other time frame combos that I use but you get the idea.
Also, always remember you're trading other people. One thing I'm continuing to work on is getting the pulse of other traders, especially the ones I don't think read the market well, and use that as information.
Best wishes to you.
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LOL Good thing for US, the market is full of traders\ investors like me in my first year; i proved the market is not random @ all- i did far +far worse than random\LOL
My comments only apply to ETFs , derivatives + stock market\ not bitcon or crypto cr*p
Read + study post #62 + get some public library cards + a private library when you can afford it; for cash................
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I gave away Jim Roger's book ,Hot Co....... to a public library\ after enjoying it for many years[cash copper + cash corn cover......].
But I also checked it out again from that library/LOL
Pay attention to any market;
certain patterns are seasonal + tend to repeat, some times across markets.
Sept red apple and any apple dump in SEPT, tends to dump prices down.
Good for sellers + buyers.
Some of those commercials use coolers\ so around here they dump apples in OCT also