Put these charts on your wall for reference the next time you think… Something is “oversold”

[ironchef]

%%
I buy + sell, even though i have a different nickname; its not a bout prediction @ all. Even thoug SEPT tends to sell off in DIA/DOW .... NOT a prediction

Thank you for taking the time to explain. So, which of the following are false and not true and what should be corrected?

1. TA are lagging indicators (meaning they use past values to create indicators/signals).

2. Predictions of entry-exit using TA are extrapolations (of what showed from the TA indicators).

3. Most of the time they don't work.

Regards,

 

[AMAURIJUNQUEIRA]

Excelent. Thank you for share. If you permit, I´ll use to explain to my traders friend´s because use just one indicator is dangerous.

 

[Buy1Sell2]

Care to explain and correct my false and misleading statements?

Not trying to argue or debate, just want to understand your view.

Thanks.

Indicators have tremendous prediction capabilities and if one knows how to use them, they work most of the time. Your statements earlier are false and misleading at best.

 

[Buy1Sell2]

Put these charts on your wall for reference the next time you think…

• Something is “oversold” or “at support” and has to go back up…
• 

• Something is “overbought” and can’t go higher…
• 
  
  
• It can’t go to 0…
  
• 
  
  
• • It is certain to default…
  • 

Using an overbought or oversold indicator by itself is not a good way to analyze activity. Singularly useless.

 

[themickey]

These charts show exactly why short-term trading ..i.e.....seconds..minutes..hours is so much more profitable that all that longterm holding BS. A good daytrader would have never got caught in all that those BS drawdowns. He places his trades and stops and if market doesn't go his way in a reasonable amount of time he is out faster than crap moves thru a goose or his stop gets hit or he changes his premise based on unfolding PA. None of that BS weeks and weeks of drawdown where every line on the chart keeps getting broken. He just follows emerging PA until it does differently than what he extrapolates based on the odds and the PA unfolding in front of his eyeballs. Does he get it wrong sometimes? Of course. On average he will be wrong 4 out of 10 trades. But he don't have all those monster drawdowns..waiting..hoping..screaming..praying..breaking things..plus hollering wife...selling car..charging CC ...fighting brokers..margin calls...

By end of day he is out of the scuffle. Either with profit or loss. He gets his report card every day. He knows exactly where he stands. No sleepless nights. Hurst talks about it in his book. Much much more potential in short-term trading than longterm BS. Traders have been fed a line by the investing world and they have swallowed it hook..line..and SINKER..especially if they tried their hand at short-term trading and failed. It takes a long time to become a really good short-term trader. But once you do.........

Most are too lazy to study..observe..practice..learn..and implement.

Most are pyschologically not prepared for short-term trading.

Short-term trading is high performance activity. Requires pyschological prep. Most bypass the psychology factor thinking they ONLY need a good system. However, psychology enters the picture BIG TIME the second a trader executes.

All rules can be broken except for the "golden rule." Entries..SL's..PT may ALL be adjustible. IF the market is adjustible. Do you see the market as adjustible? Entries..SL's ..PT's can all be set in concrete IF you think the market is CERTAIN. Or you may employ the later because YOU VIEW the market as uncertain and you want to give some certainty to your trading. So...do you see the market as certain?

So what is the market? Certain or uncertain? How YOU SEE it determines HOW you trade it. How it REALLY IS determines your profit or loss.

Bye

Day trading make make you feel safer but you work 100 times harder than those who can hang on for days to weeks at a time.
But that's ok if you dont mind working for night storepackers hourly rate.
Difference is too, night store packers don't need to outlay and risk thousands of dollars for the privilege of their hourly rate.

 

[themickey]

We've already deduced that with short term trading you can't hit the bid with size.
So all week long you are hunched over nibbling away, pecking like a sparrow.
Great!

 

[ironchef]

Indicators have tremendous prediction capabilities and if one knows how to use them, they work most of the time. Your statements earlier are false and misleading at best.

OK I see.

I should have said: For me all TA are lagging and predictions seemed to be just like extrapolation, sometimes they work for me but most time they don't for me.

So, can you give me some suggestions where can I learn to make them work?

Best to you.

 

[murray t turtle]

Thank you for taking the time to explain. So, which of the following are false and not true and what should be corrected?

1. TA are lagging indicators (meaning they use past values to create indicators/signals).

2. Predictions of entry-exit using TA are extrapolations (of what showed from the TA indicators).

3. Most of the time they don't work.

Regards,

%%
Number #1 on your list is true,IronCHIEF ==NOT a prediction LOL. BUT NOT only is a 200 day moving average lagging, LOL-it IS true, +200 dma IS important 200 dma does not work-you do the work, we do the work!!

WHY 200 dma?????,??Many reason$ ;IBD [Investors Business Daily] uses it ALL the time= that would be reason enough-word to the Wise. Good question buddy. PS Alan Farley/ Master Swing Trader noted ''Bulls live ABOVE 200 dma; bears live below 200 dma""SEPT may sell off; DIA/DOW does usually, even if above 200dma.NOT a prediction

 

[ironchef]

%%
Number #1 on your list is true,IronCHIEF ==NOT a prediction LOL. BUT NOT only is a 200 day moving average lagging, LOL-it IS true, +200 dma IS important 200 dma does not work-you do the work, we do the work!!

WHY 200 dma?????,??Many reason$ ;IBD [Investors Business Daily] uses it ALL the time= that would be reason enough-word to the Wise. Good question buddy. PS Alan Farley/ Master Swing Trader noted ''Bulls live ABOVE 200 dma; bears live below 200 dma""SEPT may sell off; DIA/DOW does usually, even if above 200dma.NOT a prediction

Thank you. I will study 200 DMA more carefully.

 

[murray t turtle]

Thank you. I will study 200 DMA more carefully.

%%
Strange; i clicked on CME facbook today,even one of thier[ CME] day traders was talking about 200 dma.