Technical indicators
- Thread starter ys7799
- Start date
Price and Volume
- Spydertrader
I recommend you just learn about price itself of whatever it is you plan on trading.
Simply, instead of taking the path of technical analysis via indicators...
Take the path of technical analysis via price action itself (no indicators).
Why???
If you survive (as in being profitable) several years of trading via technical indicators...
Eventually you'll start to understand the price action you are trading result less need for technical indicators.
Simply, most veteran traders (as in +10 years or more of profitability) are price action traders in comparison to when they first started as traders via technical indicators.
I'm not saying you can't be profitable via technical indicators because I know a few (not many) that are profitable via technical indicators along with seeing verification of such.
I"m just saying that as each year goes by we tend to become more experience and understand more about the price action we are trading without any input from indicators.
That in itself allows for a natural transition from trading via technical indicators to trading via technical price action by itself.
Mark
Excellent post mark......................
When a trader gets experienced enough he/she can watch price only and within their mind be aware of what has happened in the mkt and what is coming next. Price drives fear and greed because that is all the players in a game of probability (ODDS) have to hang their hat on when entering the trading room.
When i first started out.............and we all traveled this road, the assortment of possible indicators was and remains endless. Tons of gurus out there that are going to make you rich with this or that system, method, etc. They come and go.
I can tell everys ingle trader out there how to make money with less than 10 "SIGNALS", notice i said signals NOT indicators, A "SIGNAL" is intuitive recall of what the odds says "get ready to pull the trigger" A signal is what you are looking for because you KNOW what works when price does what price will do, you know the ODDS are better for a winning trade.
Price, signals, discipline and the rest is all gravy.
Anyone that tells you they have a good system based on indicators etc are all wet. They fail to inform the person that as in GOLF (10% metal, 90% mental) the system itself in nothing without experience amd rock solid discipline. I could give 100 traders the 10 signals and 99% will tweek them to death and lose their ass in short order.
How many systems have been developed and sold last 10 years? What STILL is the ratio of losers to winners? That says it all.
OK, GIANTS win tonight, enjoy the game and the goodies, friends etc.
Mark, great post..
When a trader gets experienced enough he/she can watch price only and within their mind be aware of what has happened in the mkt and what is coming next. Price drives fear and greed because that is all the players in a game of probability (ODDS) have to hang their hat on when entering the trading room.
When i first started out.............and we all traveled this road, the assortment of possible indicators was and remains endless. Tons of gurus out there that are going to make you rich with this or that system, method, etc. They come and go.
I can tell everys ingle trader out there how to make money with less than 10 "SIGNALS", notice i said signals NOT indicators, A "SIGNAL" is intuitive recall of what the odds says "get ready to pull the trigger" A signal is what you are looking for because you KNOW what works when price does what price will do, you know the ODDS are better for a winning trade.
Price, signals, discipline and the rest is all gravy.
Anyone that tells you they have a good system based on indicators etc are all wet. They fail to inform the person that as in GOLF (10% metal, 90% mental) the system itself in nothing without experience amd rock solid discipline. I could give 100 traders the 10 signals and 99% will tweek them to death and lose their ass in short order.
How many systems have been developed and sold last 10 years? What STILL is the ratio of losers to winners? That says it all.
OK, GIANTS win tonight, enjoy the game and the goodies, friends etc.
Mark, great post..
http://www.dacharts.com/123.htm
http://www.dacharts.com/2b.htm
http://www.dacharts.com/inside.htm
These are but but three examples.
Mark, Hog & Spyder . . . well stated.
Price is most pure and visable as a bar chart where the increment is based in volume not time or range.
You have time charts; daily, weekly, monthly, hourly, minutes and seconds. These are noisey do to the variable nature of an inconsistent number of exact contracts or shares traded per bar.
You have tick charts where each bar is based on a user defined number of transactions per bar but again these are noisey do to the variable nature of an inconsistent number of exact contracts or shares traded per bar.
You have range charts where each bar is based on a user defined price range that a chart moves regardless of time or volume. These are noisey again do to the variable nature of an inconsistent number of exact contracts or shares traded per bar.
Then you have Constant Volume Bar charts where each bar is based on a user defined number of contracts or shares traded per bar. This gives a trader the ability to attach an exact and consistent volume to the price bars. Then the number of contract per bar then can be adjusted to the a trader the view of the markets either on an Intraday, Swing, Position or Long Term basis simply by increasing the volume per bar. This gives a trader or investor the purest and most incorruptable view of price action available.
Candlestick charts are useful as well, when applied to Constant Volume Bar (CVB) Charts but only if the trader or investor already has a strong grasp of the specific meaning attributed to each bar. Because of the varying nature of time, tick or range charts, candlesticks aren't as consistently accurate when applied there as they are on CVB Charts.
Price, once printed is not able to be readdressed. There are no "Do-Overs" once a trade is executed. The same goes for volume so these two pieces of the analysis puzzle need to be viewed on a chart in a non-wavering non-variable environment and that is what CVB Charts accomplish.
indicators are like crack. Once you start using them, you wont want to take them off regardless of wether they work or not.