Price TA... Trade What You See!

[themickey]

Maybe trading is like politics.
There is a news storyline for the public's consumption which invariably is simplistic bullshit and which 90% of the population swallow hook line and sinker, then there is a genuine story where you need to read between the lines to grasp the truth.

I'm convinced TA works, but then there's different degrees of TA.
Support and resistance is something which works, but there are different degrees of support and resistance.

As an aside, the other day I shared a different method of applying moving averages using a 1 period MA and offset.

Today I'll share a different method of S/R.
.................................
Trend lines, by and large are straight lines.
What may appear to be a curved trend line is actually just a series of short trend lines which from a distance appear curved.

Now a different approach to applying a trend line is; Take the LLV / HHV (lowest low / highest high values) of 3 months ago or 3 weeks ago or 3 days ago (depending on the timeframes you are trading).
So take the LLV / HHV last month / week / day and there are your current S/Ŕ Trend lines.
View below using bitcoin as an example.

Here we have a channel made of S/Ŕ of both HHV & LLV, 3 months ago and 1 month ago.
You do not use the current month/week/day bar but the one prior.
You do not use the the middle bar, ie you use 3 bars ago and 1 bar ago.

This is using TA (S/R channels) in a way most pundits are unaware of.
So in effect, a new trend line is created upon every new bar.

 

[Laissez Faire]

You're having a go at Scat, essentially saying Support n Resistance, TLs and Channels don't work, and you're using more Lines than Keith Richards on your Charts.

Re-read the post you're quoting as you clearly didn't get it. As for lines on my charts - there's essentially only one major trend channel and a flag within, including the most common MAs, so I wouldn't say there's that many.

Wait till the Market settles down due to the Israell/Oil situation and I may make some calls for you, with or without SnR, TLs, Channels etc.

So it doesn't work now? Looking forward to the calls.

 

[Laissez Faire]

Where do you recommend someone starts?

How sure are you that your recommendation will be more useful or profitable?

I wouldn't recommend anyone to start and that would be 100 % more profitable than wasting away your money on KISS TA.

Regardless of that, I'm not trying to mentor or teach anyone on ET, so that's a big difference.

Anyone who's trying to do so on ET should be willing to take some heat and answer critical, legitimate questions without getting butthurt and blocking critical voices.

 

[themickey]

The point was, there are unconventional methods of TA which may work better than the mainstream ones.

 

[WWarrior]

Only a bonehead would miss the "4-arrow support" play.

View attachment 324225

Definitely a key support area

 

[WWarrior]

We have already seen this chapter in TA for Dummies.

The next chapter is accumulation/distribution ?

Excellent question . Having an understanding of "order flow" can only help you improve.

For example, if price is approaching resistance and the order flow is covering rather than fresh professional buying, price has virtually zero chance of breaking up and out of resistance. And any breaks of resistance will be stop runs.