Is chart trading dead? (At least when it comes to ES)

[tortoise]

1. ES charts were fine this year, as always. Yes, volatility was low much of the time. That only means you should expect to make your gains in smaller chunks.

2. Spend time on becoming a better chart player. When you get a handle on that, you won't be listening to anybody for market advice.

3. K.I.S.S., as always.

Thanks. I needed to hear that.

 

[Gambit]

You mean hoes was better. Right?

DJ Funk used to play this in his sets. Brings back memories.

 

[volpri]

Seriously though OP. If you mean charts in terms of representing quantifiable data, that’s all fine and dandy. But if you mean V, W, triangular, square, and circular price patterns, then we’re talking voodoo.

ROFL...ANYTHING CAN BE MEASURED. Even circles and squares.........

 

[digitalnomad]

This is backed by research fwiw. Andrew Lo from MIT did a massive study on technical analysis patterns if you want to check it out.

Of course it is. Everyone wants to take the easy road. If there was any convincing evidence, there wouldn't be a need to slave away in front of historical price data.

 

[digitalnomad]

ROFL...ANYTHING CAN BE MEASURED. Even circles and squares.........

Then show us how to measure them in a non-static state

 

[SoesWasBetter]

Not sure burnouts pining for the good ol' days adds much value to the site.

Nor do miscreants, but don't let that stop you.

 

[Sprout]

Then show us how to measure them in a non-static state

 

[Gambit]

ROFL...ANYTHING CAN BE MEASURED. Even circles and squares.........

I don't want to start a war over TA. Lo did attempt to quantify patterns like head and shoulders.

 

[Slartibartfast]

I don't want to start a war over TA. Lo did attempt to quantify patterns like head and shoulders.

I recall an Andrew Lo lecture I found very useful in understanding efficient markets and such.

 

[lcranston]

I've had a lousy year trading ES. The lack-of-volatility, overlayed with six months of chemotherapy, just about prompted me to throw in the towel.

First lesson: Don't trade while undergoing chemo.

Second lesson: Well, that's the point of this post. Bear with me....

I just finished watching one of John Grady's excellent webinar videos on order flow. He appears to be a proponent of trading without charts, using just order flow info (in this case as presented on the Jigsaw platform). He asserts that prop firms don't allow newbie traders to use charts at all. Moreover, in this algo-driven enviroment, where the bots are scalping for two-to-four ticks, he says it makes sense to do what the bots do. He advocates trading extremes of the buzz-n-fuzz range for ticks.

Ok, a couple of questions:

1) Why would I want to compete head on with bots at their own game? Doesn't any advantage of discretionary trading stem from the fact that skilled discretionary traders are able to transcend the noise and capitalize on imbalances that lead to price dislocation?

2) Doesn't such an approach leave one vulnerable to account-decimating overtrading?

3) Am I a Luddite, seeking to justify the old ways of doing things when those old ways just don't work anymore? Maybe "chemo brain" is not too blame for the cascade of poor entries and worse exists. Maybe charts really are yesterday's tech, and ES traders need to be order flow scalpers in order to survive.

Thoughts, anyone?

Rather than abandon charts, try trading something else. I chose the NQ over the ES years ago and have never had reason to regret it. The NQ is volatile, it's directional, it's predictable, and it moves.