It probably makes sense if you're a very short-term trader or use some really poor data feed like IB (which even has high/low ticks off at times :eek: ), but speaking of more or less "slow" day trading trendlines would still be exactly the same in case of regulated futures markets with centralized price "prints".
TA - Objective or Psychological Skill?
- Thread starter cornix
- Start date
It probably makes sense if you're a very short-term trader or use some really poor data feed like IB (which even has high/low ticks off at times :eek: ), but speaking of more or less "slow" day trading trendlines would still be exactly the same in case of regulated futures markets with centralized price "prints".
In theory, it should be but such is not the case every single time regardless to the time frame chart (e.g. weekly, daily, hourly, 5min, 1min, continuous tick or whatever).
Trendlines are not exactly the same as I noted earlier even if its being done automated from different automation programs. Therefore, what do you think "discretionary traders" are going to do with their trendlines ? Yep, place them anywhere that fits their definition of "proper trendline" placement.
By the way, I'm not debating with you. I'm just relaying what I see in so many different charts even with today's high tech market environment.
I guess, there wouldn't be an issue for trendlines or Japanese Candlestick Analysis if there was only one data source, one charting program, one internet server, one ISP and every trader on the planet lived on the same block.
Imagine how perfect our data would be and exact same price action would be from one trader to the next trader if some corporation had a monopoly without any competitors.
Quote from wrbtrader:
In theory, it should be but such is not the case every single time regardless to the time frame chart (e.g. weekly, daily, hourly, 5min, 1min, continuous tick or whatever).
Trendlines are not exactly the same as I noted earlier even if its being done automated from different automation programs. Therefore, what do you think "discretionary traders" are going to do with their trendlines ? Yep, place them anywhere that fits their definition of "proper trendline" placement.
By the way, I'm not debating with you. I'm just relaying what I see in so many different charts even with today's high tech market environment.
I guess, there wouldn't be an issue for trendlines or Japanese Candlestick Analysis if there was only one data source, one charting program, one internet server, one ISP and every trader on the planet lived on the same block.
Hmm... Still i think if we take two 5-min LL's of the same market and draw a trendline using different charting packages, but the same points, trendline will be pretty much the same.
Quote from cornix:
Hmm... Still i think if we take two 5-min LL's of the same market and draw a trendline using different charting packages, but the same points, trendline will be pretty much the same.
Yes, on most days it will be in reference to trendlines. Yet, on other days, it will not be due to the differences I mentioned earlier. Thus, technology isn't perfect. Therefore, traders using the exact same objective TA will have different results.
Cornix, I'm sure you can easily contact all the different automated chart program vendors and ask them why trendlines are "different" from one program to the next program when plotted on the same chart.
There must be a logical reason...right ?
I did such many years ago involving automation programs of simple candlestick patterns. Each blamed the other for being "incompetent" or not knowing what a "proper" (correct definition) of a particular candlestick pattern.
I think automated trendlines are different, because there is no agreement among vendors about the exact construction method. Also resources for automation are still relatively poor.
While I can teach a human easily how to draw trendlines the same way I do it would probably take much more time coding it into an automated algo.
Quote from cornix:
Speaking of YM swing call here. We had intermediate-term (weekly) trendline broken, a couple tries to go back up and eventually a daily 2B top pattern. Who said Vic Sperandeo's principles don't work these days?
I like Trader Vic's approach for the clarity and simplicity.
This guy has a lot to say about that.
http://www.thepatternsite.com/2B.html