And I am patiently waiting for the official invite to Ohio, btw.
Technical Analysis = CRAP
- Thread starter Frits
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I can't believe how huge this thread is getting. Wow!
So, for me, the key to technical analysis is to know what I'm analyzing. If you could see an out of control crowd running down the street, you could see the fear in their eyes or the lack of inhibition and guess with amazing accuracy that they're going to keep being unruly for a while. Later you could see the calming begin and would know that they're about to break up and go home. TA is just a way to see this through a different set of eyes within an invisible crowd spread out all over the world.
Learning how indicators reveal the crowd is like trying to see what's going on inside the Matrix by looking at the green symbols falling down the screen in the movie The Matrix. It's just a different language.
So, for me, the key to technical analysis is to know what I'm analyzing. If you could see an out of control crowd running down the street, you could see the fear in their eyes or the lack of inhibition and guess with amazing accuracy that they're going to keep being unruly for a while. Later you could see the calming begin and would know that they're about to break up and go home. TA is just a way to see this through a different set of eyes within an invisible crowd spread out all over the world.
Learning how indicators reveal the crowd is like trying to see what's going on inside the Matrix by looking at the green symbols falling down the screen in the movie The Matrix. It's just a different language.
I don't understand how Time can be removed from a financial chart. It's inherently there despite just measuring tics due to the very nature of the market down to every trade that takes place on a timeline. It seems that removing the time constant only leads to additional chaos. For example, with a 347 tic chart -- there will be a differing number of bars depending on th trade volume each session. It simply makes no sense. Even for TA true believers.
Umm, the old Point and Figure is still one of the better technical systems out there. So is Market Profile in the sense that it's a vertical price histogram that is really designed to identify value areas. Depends on how you use it.
Trading with the P&F breakouts is one of the better TA systems you will backtest and trade fo reals playa. Still highly effective.
Yes, I am aware of those methods. My point is because it takes time for the patterns to form, time remains an inherent part of any TA method--- whether or not it's directly measured.
Surf
Surf - for my own personal trading, and with my client work, we use mulitple timeframes. Overlaid. On the same instrument/spread.
I could not survive trading if I was forced to use just one timeframe on a flat price instrument directional play. No way. Tip of the hat to those of you who do. There are easier ways.
I could not survive trading if I was forced to use just one timeframe on a flat price instrument directional play. No way. Tip of the hat to those of you who do. There are easier ways.
Thanks for the clarification bone.
Surf
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