In this video
http://adamhgrimes.com/blog/randomsrlevels/ , trading educator Adam Grimes shows viewers that what most intraday traders see as support and resistance price levels are random.
Over the span of five years as a technical analyst and day trader I have come to similar conclusions from experience as Grimes did quantitatively, that everything on a chart is random and most discretionary day trading success can be reduced to chance, risk management, psychological awareness and speed of execution. The factors of success for discretionary day traders are much harder to achieve now, with the dominance of HFT in the past decade and will become nearly impossible for discretionary daytraders when quantum-computer trading algorithms establish dominance with near-total efficiency in the markets as HFT algorithms have.
It is my opinion that the publishing of a book on intraday price action, especially for discretionary traders, without an acknowlegement of randomness in the markets by the author, to serve as one of many necessary disclaimers, is as socially irresponsible as publishing books like The Anarchist Cookbook or a do-it-yourself abortion book.
You don't understand what hes' doing when you said...
I have come to similar conclusions from experience as Grimes did quantitatively, that everything on a chart is random and most discretionary day trading success can be reduced to chance, risk management, psychological awareness and speed of execution.
Actually, he states elsewhere at the same blog that he has found very simple patterns that are useful in
actual trading. He goes on to say that a trader that can "read and analyze these patterns can quickly drill down to the essential elements of the market...the best patterns often pretty ugly, but they fall in beautiful spots in the market structure".
Simply, Grime does
not share your sentiment that
everything on a chart is random. Thus, he stating SOME things on a chart is random and he uses support/resistance as an example of one of those SOME things. In contrast, you believe EVERYTHING on a chart is random.
Further, Grime gives specific examples of how to better use chart analysis to look for profitable opportunities.
I find it all ironic that YOU in other threads are very good in attacking educators that sells books, does webinars/podcasts and offers other fee-base services. Yet, you choose an educator that does all of that to try to support your belief about technical analysis.
My point, he's still an educator and he does not share your beliefs that
everything on charts is random and many educators do talk about random theory in the markets and so do traders. They just don't make it a big topic in their books, forum messages, seminars or whatever. Heck, I've even seen some of this forum's biggest TA users talk about random theory...they just aren't a believer in it or they believe "sometimes" the markets are random and those other times when its not random...the markets can be exploited.
By the way, can't you find someone that's
not selling any books and actually believes ALL of technical analysis is random instead of you using educators that sell books and that only believes SOME things in technical analysis is random ?
P.S. A few years back I purchased Grimes book called "The Art and Science of Technical Analysis: Market Structure, Price Action and Trading Strategies. I highly recommend you read it...its a good read although some accuse him of getting his TA information from the strong believer in TA by the name of Linda Raschke.
