If you want to fail as a trader, study TA

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Quote from The Expert:

ELEMENTARY, my Dear Watson:cool:



TE
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For PEP oriented traders, the attached illustration shows the usage of the colored boxes vis a vis dominance and non dominance. They lag @ beginning and are extended beyond the non stationarity window of this insturment (meaning trading item), i . e., the event is over and the box continues.

If trading signals were to be used, this is what is called a coarse trading level.

There is also the matter of how price and volume move in trends and how trends overlap.

On this coarse level there is no depiction of how sentiment changes within a bar. The easiest example to examine for this failure is bar 2 counting from the left.

This is my second post in this thread.
 

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Quote from The Expert:

ELEMENTARY, my Dear Watson:cool:



TE
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Thnks MK for pointing out its a monthly chart and your later comments and also those of oldareg. I'm not sure or the rules defining how the boxes are drawn but the boxes seem to be defining the levels that TE often refers to.

My take on this is, the prior breakout is due to instituitional investors and what follows afterwards is price action due to retail traders. The instituitional investors don't want the price to fall, as evidenced by the support of the price at the bottom of the top yellow box for 5 months. The supply was absorbed as indicated by the last 2 red bars, volatility is falling as indicated by the last red bar. The conditions are now right for further buying by instituitional investors as the floating supply has been removed, they don't like to buy when supply is present as it would weaken the breakout and cost them more. Potential trade looming with SL around bottom of white box, target at top of yellow box or higher (trade from intraday chart though), but wait for evidence of further buying by instituitional investors.

I'm sticking my neck out and I could be wrong.
 
Quote from Fibbin-Archie:

I take it that we have now switched to the MONTHLY bars for BDX...

JH I'm GUESSING they're Gann plots on your attachment TE ain't gonna like that.
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No, I just use TA and how the P, V relationship works in markets.

I read the P, V relationship in 1957 in 4th Ed of Magee and I have used it ever since. All the major TA indicators had been done before 1957.

You may be able to notice that each parallelogram has three easy trades.

By constructing the nesting of fractals and using the P, V relationship, a person always knows in advance the order of events and their duration.

Knowing what is going on, what is next and how fast the order of events is changing is a TA approach that enables a person to continually extract the market's offer.

Some of my most interesting experiences have been when well known CW traders became aware of what has passed them by for most of their lives. The most significant thing they point out to me is their new recognition that predicting is not a trading requirement and, then, that the market follows an order of events. Few are able to recognize that there is no noise nor anomalies in the market's order of events. How could they?
 
Quote from Fibbin-Archie:

Pekelo, by 2nd gap do you mean "measuring" gap?
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I mean the cash gap between the close and the open. There is a thread about it, do a search....
 
Quote from jack hershey:

No, I just use TA and how the P, V relationship works in markets.

I read the P, V relationship in 1957 in 4th Ed of Magee and I have used it ever since. All the major TA indicators had been done before 1957.

You may be able to notice that each parallelogram has three easy trades.

By constructing the nesting of fractals and using the P, V relationship, a person always knows in advance the order of events and their duration.

Knowing what is going on, what is next and how fast the order of events is changing is a TA approach that enables a person to continually extract the market's offer.

Some of my most interesting experiences have been when well known CW traders became aware of what has passed them by for most of their lives. The most significant thing they point out to me is their new recognition that predicting is not a trading requirement and, then, that the market follows an order of events. Few are able to recognize that there is no noise nor anomalies in the market's order of events. How could they?
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Is it not true that these "order of events" as you put it take place on each of their respective time frames or are you saying that they feed through influencing the longer time frame?

e.g. you can see; accumulation, mark-up, excess and distribution on monthly, weekly, daily, hourly and minute time frames.

By easy trades, I take it you mean the channel breakouts.

PV relationship, I'll check it out, is it similar to getting trend alignment on the long, intermediate & short TF? Of course you would also need to be aware of the trend structure (over extended, etc.) on the TF you intend to trade. I'm just guessing here BTW.

Thanks for the explanation BTW.
 
Just found a great, easy to understand primer on Price / Volume Relationship that you can read and digest in about 10 mins.

PM me for the link if anyone's interested.
 
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