TA - Objective or Psychological Skill?
- Thread starter cornix
- Start date
The quote is absurd.
I surmise that mostly everyone knows that.
Prediction is not a requirement.
Taking the full offer of the market continually has nothing to do with prediction.
The only requirement to take the full offer of the market is to know that you know in the PRESENT.
Quote from cornix:
Following the discussion in my recent journal in order to clear it from the off-topic discussion I suggest the following debate here:
TA (technical analysis), is it objective edge or rather a psychological subjective skill?
My own belief is TA patterns can be objectively defined and many of them probably automated as well with the only limitation is ability of computers to process all inputs.
But psychological component is important when it comes to manual execution/trade management discipline etc.
So let's discuss it.
I'm not quite sure what you mean here - if something isn't an "objective edge" then it won't make money. Psychology, discipline and trade management are necessary boxes to tick but cannot turn a losing system into a winning system.
To have a winning system you need to be able to identify when to enter a position, and when to exit, such that over time the trades are profitable. I know from experience that there are certain TA tools which, in combination with experience, etc. allow you to do this.
Sure,i`m always open.I hear you.
TA can be objective if and when a person uses rational thought.
For any type of "problem solving", the solver has to be rational.
You have employees. They can tell you what a trader's expert quality performance is. It is the standard in every shop.
Everyone knows the independent and dependent variable of the market.
Trend monitoring and analysis long go replaced trend following and reacting to the market.
WHY ISN'T THE MARKE SUPER COMPLEX? Many of Einstein's quotes find sublime application in markets.
Think of the word "elegant" and for a moment just let your mind have a new experience:
1. Select the appropriate market system Algebra. Ans. Boolean Algebra.
2. Chose the independent and dependent variables of the market system. Just see the huge living organism of the market system and how it behaves in our natural world. Ans. The natural algorithm of the market system places volume with the "IF"..... further the "THEN" is associated with the price.
3. Could you relax and just think about parcels of information. Your employees use parcels of information to spend time working. They may talk with you about ideas that relate to information. The market sends out information. Computers feed it to filters, functions, sets, libraries. It is processed quantitatively and qualitatively. Information is available on data items that relate to the market as to how the market is being inputted with various kinds of orders for each and every instrument which is part of the market system by exchange and across exchanges.
Don't consider any more. Data is parcelled out. The variables are defined universally, consistently and they have precisely defined units. The market dictates the precise Algebra by the FORM of the data that the market provides.
Can you see a contract? Can you see a share? Can you see a tick? Can you see a pip? Can you see more than one of each?.
Can you see an instrument and its value?
There are meeting places for interested parties. There is an elegant way of participation by using the exchange rules as set forth in legal documents. All of this is understood by the participants and they behave rigorously according to the rules.
Everything is all precise and supremely organized to allow a magnificent freedom of participation.
Did you ever learn to play marbles as a kid?
Everyone takes their funds to an intermediary. Everyone is free to work as they wish.
A person joins in the market system. It is like sperm. Sperm knows why it has a tail. Sperm has an IB. The IB connects the sperm. Sperm knows the rules and plays by the rules.
NO ONE USES CHARTS IN THEIR PLAN OR STRATEGY.
1. ALGEBRA.
2. VARIABLES
3. INJECTION OF DATA PARCELS.
1. , 2., AND 3. COMPRISE the science. Science in market participation is referred to as technical.
Now think about your world. You bet and hope. You may use "protective" stops. You may pay for money management. All of this is you facing a salesman and he does what you ask for a commission. All that you know of and do happens below the neck. It is all "feelings". You feel anxiety, fear and anger.
I am a scientist and I use a market system which has a language. the language is algebra, variables, and the market's system of operation spelled out totally and completely. I take the full offer of the market all day long, segment by segment of the offer.
Thinking doesn`t work,but mentoring does.
Subjective TA seems to be an objective to the ignorant.In ignorance you think of TA as objective, although in reality the TA is the subject and we are hypnotized to see its objects.Unintelligent people like JH take the subject as an object. It is ignorance to confuse the eye with the seer or the brain with the knower.The objective TA is a perverted reflection of the subjective TA.
Subjective TA seems to be an objective to the ignorant.In ignorance you think of TA as objective, although in reality the TA is the subject and we are hypnotized to see its objects.Unintelligent people like JH take the subject as an object. It is ignorance to confuse the eye with the seer or the brain with the knower.The objective TA is a perverted reflection of the subjective TA.
I enjoyed reading your post.
I objectify TA by using RDBMS approach.
I have three 3 ring binders I consult. The items entered are algebraic "true/falses" or IF, THEN True or Falses.
I do sense the RDBMS, this is matched against the three common mind operators AND my fully diiferentiated mental spectrum of the parts of the RDBMS (56 items).
I do understand that you find me to be unintelligent and that you are "seeing" objective TA as a perversion of what you know to be the real subjective TA.
FYI, when a trend is ending, I take gret pride, in knowing that I know, just what is going on. At a potential event n-1, I check my If then pairs to see if the named event is an n-1 for the one of four types of trends under way. If it is NOT listed, THEN I know I have atleast THREE events to go before the trend underway ends. I regard this as better than unintelligent.
IF the item Is on the list, THEN I know exactly what the choice of events is that colud end the tend profit segment. Either one of the choices happens or it does not. Either way, at lock in the RDBMS decision is made.
I posted the four types of trades and their respective panels (8) for the above.
Occasionally I have guests. recently, my guests were oriented to successful trading using Gann and Elliot. For the stochasts and MACD hey also used, they put fib gradients in place so one chart could serve two purposes. I showed them my equivalents whereby I changed the defaults to achieve the same effect.
There was one comment made that you will not accept. These well travelled traders, felt that the RDBMS I use is more complete han anything they had seen.
I'm sure you have reviewed the 8 panels and found them not to your liking. I do not feel it is incombent on anyone who shuns my views to offer me constructive criticism.
On the otherhand, you may wish to reconsider that objective TA is a perversion of the real true subjective TA. My proofs are the reason I suggest this to you.
Mentoring success is inversely related to the age of the mentoree. Ignorance is not a handicap in any way.
Ocean5/TheMagican....why is it you always have a new handle?? Do you keep getting banned or something?
I admire your ability to see the reality from both ends.Which is you refer to as Elegance,i believe.It is the Elegance.
"Occasionally I have guests. recently, my guests were oriented to successful trading using Gann and Elliot. For the stochasts and MACD hey also used, they put fib gradients in place so one chart could serve two purposes."
LOL...It`s just like trying to argue,using those objects of TA,but thought doesn`t thrive on conflict.And you cannot predict the Anger.