Congratulations on redeveloping Dow Theory from the ground up.
Recognizing Reversals from the Top/Highs
- Thread starter trader99
- Start date
Congratulations on redeveloping Dow Theory from the ground up.
Are you saying I'm reinventing the wheel? I'm not sure if this is a real congrats or sarcasm. I'm only vaguely aware of Dow Theory.
There's zero evidence that Demark can outperform an index fund. Yes, he wrote a book with fancy-schmancy indicators, one of them supposedly can help you call tops. Unless he provides account statements or even backtests of his indicators after he introduced them in his books, there's absolutely no reason to worship or even follow the guy.
https://www.quantopian.com/posts/demark-indicators-backtested
To answer TS' question, if any of us figured out a highly reliable way to locate and trade market tops/bottoms, we'd be on a yacht counting stacks of $1,000 bills...not posting on ET.
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For me it is as simple as the opposite of the signal that tells me the reversal from the bottom. But as you kind of implied in the paragraph preceding the one cited above, it all depends on the nuances incorporated in your system.
MKTrader, you sound like you been around the block
highly reliable, yeah that's asking a lot. anything somewhat reliable that you know of off the top?
what's your take on fib price projections as one tool in the box for the op to "help recognize possible reversals from long trends"?
cheers
on a yacht counting stacks of $1,000 bills
btw, I always picture that scene in 'snatch' dennis farina, talking about boat drinks. the dialect in that flick is freakin' great.
Unfortunately, I've never seen any hard, systematic evidence of the markets following Fibonacci patterns. It's possible that prices may occasionally pause at a highly watched Fib level, the same way stock indexes pause at major round number prices (like S&P 500 at 3000). But that doesn't help you determine the future price. It's just a self-fulfilling prophecy.
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Late is good, especially with profits. Most bottoms are a multi-month W-- not a v. Looks like the 2019 bottom was a ''v'' not a w, so its not about predicting
, Thanks for the post,i use candles mostly ; IBD uses red ,white + blue bars.Recognizing Reversals from the Top/Highs
Inverted Hammer, Hanging Man, Shooting Star
https://www.investarindia.com/blog/candlestick-chart-patterns-hammer-inverted-hammer-hanging-man/
https://elitetrader.com/et/threads/...o-man-and-beast-right-here-baby.335635/page-5
https://elitetrader.com/et/threads/cardiovascular.335482/
Inverted Hammer, Hanging Man, Shooting Star
https://www.investarindia.com/blog/candlestick-chart-patterns-hammer-inverted-hammer-hanging-man/
https://elitetrader.com/et/threads/...o-man-and-beast-right-here-baby.335635/page-5
https://elitetrader.com/et/threads/cardiovascular.335482/
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https://www.forbes.com/sites/johnna...n-interview-with-michael-harris/#769bf91c4733
"In essence, the pioneers of this method were fooled by high autocorrelation and assigned forecasting power to random patterns. As high autocorrelation started disappearing from the markets in the 1980s, these technical analysis methods lost any effectiveness. However, a large industry has already invested in these methods and they are still being taught and used. Videos are uploaded daily in social media to teach traders how to use chart patterns when in reality, in algo-dominated markets, classical patterns are random formations caused by these algos."