If you want to fail as a trader, study TA
- Thread starter The Expert
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It's a monthly chart of BDX. You probably didn't realize it was BDX, so your guess was good enough.
Looks like whenever price broke out he'd draw a box using the high & low of the bars, and he'd also draw a box using the high & low of narrow range bars from what I can tell.
The bottom of the last white box makes no sense because I don't see it touching any bars. Maybe he's anticipating it will go down tomorrow. Not sure.
, tend to buy breakouts of prior day highs and prior day lows.TE,
What do you think of the Efficient Market Theory. It makes sense to me. If that's the case then all of the people studying TA or anything else related to predicting price are going to have a hard time.
It seems that the main goal is to concentrate on other market participants and figure out how to take their money.
For instance you can see when a pattern forms and watch the public jump on it, and then you can just sit back and watch them get stopped out, and you can enter after the stops have run with a low-risk entry.
What do you think of the Efficient Market Theory. It makes sense to me. If that's the case then all of the people studying TA or anything else related to predicting price are going to have a hard time.
It seems that the main goal is to concentrate on other market participants and figure out how to take their money.
For instance you can see when a pattern forms and watch the public jump on it, and then you can just sit back and watch them get stopped out, and you can enter after the stops have run with a low-risk entry.
The right-most white box appears to be a copy/paste of (same dimensions) as the white box to the left of it - just that it has been repositioned with the top at the bar high.
The breakout (wrb) moves the price bars to a newly accepted price range (the Generals?) where it is consolidating.
Quote from muraliv7:
Sounds easy, Mac. If only I knew that others are stopped out and I could enter the trades now, I would not be reading every blogs and every posts looking for the holly grail. I would not be entering trades to make 50 bucks only to loose 500 three trades down. Do you have an idea
Ven
You probably shouldn't take advice from me as I haven't made any money yet, but look at a 3 minute chart of BDX from today if you can.
Big green bar at 10:15 was a trap for the longs.
Bar at 11:33 would have stopped out longs and caught short sellers and stopped them out too when it reversed.
Big green bar at 1:42 was a trap for the longs to take and then get stopped out. Price then continued up for a bit after the weak hands were gone.
When things look extremely obvious everybody else is thinking the same thing, and the majority are usually wrong. So I've found that avoiding those beautiful, obvious setups can save me some money.
Entering the move after the "fools" get stopped out allows for a low risk entry with a tight stop and the potential for a big reward.
TE might say I'm completely nuts, but these are just my observations.
Could be that one of the reasons you're not making any money is that you're trying to trade "noise". All you level two hotshots are hypnotized by the flashing lights. Methinks y'all spent way too much time with that joystick (real or imagined). Put it this way: a cloud passes in front of the sun. Do you rush to deploy your umbrella? Step away from the 5 minute bars and try to get a sense of the big picture. The big boys don't give a rats ass about level two. But they love to cry "fish on" when they reel in another bright-eyed sucker.
But isn't that what is being done in this thread? So we're all going to have a hard time!
This all seems like classic TA to me so far.
I think that there are fundamental elements that the real pros use, but they will never be discussed unless you are inside the 'circle'. Obviously hope im wrong, because like youm i've put in an obscene amount of time trying to learn to daytrade (talking over 4 years, alot of it fulltime demo trading and real 'small stakes' trading 14 hour days!!
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