Price action is king, but don't diss indicators yet

[TraderZones]

Quote from Xuanxue:

price action and tape reading are the basis of all technical analysis!

Indicators is what the ignorant apply to the charts, because they are unable to learn price action.

If you're truly a fundamental analyst where prices trade are only important insofar as if it is under or overvalued. Pattern reading and breakout strategizing that so many mightily call pure, is only pure in the fact that it fundamentally reflects predicting future price action soley on past price action performence, or lack thereof. Vis-a-vis: technical analysis!

You sound like Jack hershey.

A great deal of indicators try to split the difference between the two camps and show where price action CAN BE or SHOULD BE under or overvalued based on past statistical percentages in variances of PAST PRICE ACTION PERFORMANCE.

Indicators is what the ignorant apply to the charts, because they are unable to learn price action.

That you aren't able to use the plethora of extant indicators as they were intended,

They don't work. Many have tested them, and they do not work. Perhaps you will show YOUR studies to disprove this. Otherwise, you remain ignorant - a believer in TA, not someone who has proved that they work

doesn't negate the fact that price action reading is central to the entire technical analytical field that you so hypocritically decry.

someone is a hypocrite because they don't believe in something that has little evidence or proof?

How do you like them apples?

All you have done is reinforced your inability to trade properly. Many people follow price action.

 

[TraderZones]

Quote from operator:

Just because you could not find any predictive power, doesn't mean that someone else could not....

So if someone, as many institutions have done, rigorously tests many indicators, and finds little predictive power,

that someone else using the same data, and believes in TA, can get better results? How, by fudging the numbers?

You have well stated the entire problem with TA. People believe in it, like fairies, elves and pixies.

 

[athlonmank8]

Quote from TraderZones:

the problem is, that few people actually will take 100 instances of this scenario, and then do a test to see what happens during the next period of time they are supposed to work.

I did this with many indicators, have seen a sizable number of studies on them, and they are generally not very predictive.

that is my problem with technical indicators. People believe in them, promote their use, and defend them via "works for me" or "I know someone who uses them successfully" or "under certain circumstances, they can be useful"

So it is a belief, and is no more valuable than holding a 4 leaf clover while trading.

I agree

 

[athlonmank8]

Quote from TraderZones:

So if someone, as many institutions have done, rigorously tests many indicators, and finds little predictive power,

that someone else using the same data, and believes in TA, can get better results? How, by fudging the numbers?

You have well stated the entire problem with TA. People believe in it, like fairies, elves and pixies.

Are you saying TA is worthless? lol blindly buying something is equally as stupid based on a few numbers.

 

[ammo]

the weather changes every day yet all in all is still the same,kind of like this broken record of an et argument

 

[kut2k2]

Quote from Acumen:

I use a custom indicator. That’s the real deal. If you come up with all your own code it gives you that much more of an edge as the chance of anyone else using the same exactly signals will go way down.

Weighted price movement is all that matters in my opinion. I run off of something in that general direction.

Well said.

 

[AlmostGotIt]

The attached image is a 14,3 stochastic anchored to a line chart of closing prices that’s 14 days long with a 3 day moving average... look at the image and think about it for a moment, what do you see?

 

[Anekdoten]

Indicators serve one purpose, feed the mouth of the those who developed them.

Don't be a fool, break that stage of ignorance, the sooner the better.

Stick to naked charts and lines, you will instantly become a better trader.

I'm sure many will wipe their asses with this suggestion but there will be come a time when you will noticed how useless they are and you will say, darn, what a schmuck.


Anek

 

[limitdown]

Quote from Anekdoten:

Indicators serve one purpose, feed the mouth of the those who developed them.

Don't be a fool, break that stage of ignorance, the sooner the better.

Stick to naked charts and lines, you will instantly become a better trader.

I'm sure many will wipe their asses with this suggestion but there will be come a time when you will noticed how useless they are and you will say, darn, what a schmuck.


Anek

sure, its the point at which the charts look just to self justifying

after the fact

not before

position sizing, taking the risk trade and hoping are the rest of the equation....

stop losses really do stop the losses, just never soon enough...

profit targets work, until the rally continues beyond one's exit point....

repeats and three-peats are only good in tournaments, like the basketball playoffs....

so is there any peace out there?, hardly, when it comes to analytical trading....

 

[Hombre]

Quote from Anekdoten:

Indicators serve one purpose, feed the mouth of the those who developed them.

Don't be a fool, break that stage of ignorance, the sooner the better.

Stick to naked charts and lines, you will instantly become a better trader.

I'm sure many will wipe their asses with this suggestion but there will be come a time when you will noticed how useless they are and you will say, darn, what a schmuck.


Anek

I agree with above if I would trade one market only .If I have to follow multiple markets I need something to tell me that an entry setups are in works.