If you want to fail as a trader, study TA

[The Expert]

Quote from Mysteron:

I expect that TE may well be watching SpongeBob right now so I'll give my slant on TA and why I doubt its usefulness. This a brief summary of a post I did in another forum.

To test and find the best combination of various traditional TA methods I produced my own program for simulating a mechanical swing trading system using end of day data. The data was obtained from Yahoo finance for numerous UK stocks. The program could back optimise the TA methods by tweaking various parameters to give large % gains per year and it all looked very promising as an aid to making money. However, when the TA methods were applied forward in time over fresh data that they hadn't been optimised on, then, I found that they did not reliably generate a profit and that losses were just as likely.

I flogged that program to death trying to develop it to generate a profitable trading system and failed to do so. The point is that I provided evidence to myself that TA in itself has no value.

If anyone thinks that TA has value please supply objective evidence and not just anecdotal reasons.

My favourite programme, much better than the automated programmes that you see during the week

TE

 

[deaddog]

Quote from The Expert:

Off you go then dg, but be careful, as you might be chasing a dead dog

Ah but a deaddog is easy to catch.

The Expert does not engage in silly and time wasting activities.

You started this thread didn't you?

 

[Mysteron]

Quote from The Expert:

Off you go then dg, but be careful, as you might be chasing a dead dog

The Expert does not engage in silly and time wasting activities.

Now, for those who can think for themselves, what do we have here

TE

A wide range bar followed by a narrow range bar. Go short with a tight SL above the NRB, not sure about target though.
I had just been reading:

http://tradermike.net/2006/10/narrow_range_bars_range_contraction/

 

[The Expert]

Quote from deaddog:

Ah but a deaddog is easy to catch.
You started this thread didn't you?

EXACTLY, but what good is he when he is dead

SURE I did

 

[The Expert]

Quote from Mysteron:

A wide range bar followed by a narrow range bar. Go short with a tight SL above the NRB, not sure about target though.
I had just been reading:

http://tradermike.net/2006/10/narrow_range_bars_range_contraction/

Had a quick look at that link MN, and, hmmm, nah, no go area, rubbish actually, more sales pitch stuff.

1. Candles are for amateurs

2. Entries are ALWAYS based on the current DAY and the CURRENT activity.

3. Levels are based on what The Generals are looking at.

4. Has anyone replied to my question about the KEY yet, for I have been distracted by dead dogs :eek:

TE

Must RUN

 

[deaddog]

Quote from The Expert:

EXACTLY, but what good is he when he is dead

Well he's easy to catch, he won't run away, you always know where he is, he doesn't cost a lot to feed, and you can depend on him to live up to your expectations.

Don't you wish the market were like that.

 

[wrbtrader]

Quote from Mysteron:

A wide range bar followed by a narrow range bar. Go short with a tight SL above the NRB, not sure about target though.
I had just been reading:

http://tradermike.net/2006/10/narrow_range_bars_range_contraction/

More technical analysis talk and have you tested Expansion/Contraction Analysis, Narrow Range Analysis or Volatility Analysis ???

Can you post any objective evidence that these work or do not work ???

I'm curious about the parameters used.

Mark

 

[Mysteron]

Quote from The Expert:

Had a quick look at that link MN, and, hmmm, nah, no go area, rubbish actually, more sales pitch stuff.

1. Candles are for amateurs

2. Entries are ALWAYS based on the current DAY and the CURRENT activity.

3. Levels are based on what The Generals are looking at.

4. Has anyone replied to my question about the KEY yet, for I have been distracted by dead dogs :eek:

TE

Must RUN

I was shooting from the hip before as its obviously not an intraday chart.

Its a daily chart showing 3 levels, I'd have thought a more logical place for the bottom one would be at 76.0 which is at the bottom of 3 bars, a support/demand area. The top of the WRB is testing supply which was absorbed as shown by the close below the NRB level and the close above the bottom level. The NRB indicates that supply has/is trailing off and the bottom support is holding. Seems a good place for pro traders to buy, so watch next days price for evidence of their activity. If the chart is for a stock I'd be curious to know what the open interest is, as the price action on 29th April WRB would have caused shorts to cover for any SL between the NRB and WRB levels.

 

[HiF trader]

Follow the expert

He is super super good

Trading is easy, easy cash super good making money

Easy Easy super easy

easy money making

Listen to expert he explain trading is easy, SUPER EASY, Making money lots of easy money

super super


(there you go now you are ready to trade according to expert)
what a world

 

[macattack]

TE,

Regarding the levels or boxes...........................is there only one specific way to choose these levels, or is it up to me as to which levels I deem to be important (or which I think the Generals deem important actually)? I would assume that 1 important level is the "open" for the day. Others would begin with the higher timeframes working your way down?

As for the futures/cash divergence and the TICK readings is it at the "levels" that these 2 criteria become most important?

Also is "market profile" something one needs to look into, or would that just be a waste of time?


Thought this was interesting:

Move together
10 million Starlings in Rome were also shown in the documentary, swarming in a similar style to shoals of fish. Gulls looking for a meal dive-bombed the flock; the Starlings responded by opening a pathway through the flock that closed after the attacker had passed. A Peregrine Falcon picked up the attack, able to dive at 220 mph. The strategy for the Starlings this time was to stay together in close formation. At 220 mph the falcon would take out a number of Starlings, but would also do itself untold damage.

The Starlings achieve this movement by sharing a common goal: survival. Each bird keeps an eye on the seven birds nearest to it and each bird acts and reacts based on what others are doing. While a bird may share some of its neighbour’s contacts, they could have up to six other contacts. These connections help develop the distinctive ebb and flow of a flock of birds.