The best book in Technical Analysis
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The basic issue is this thread is supposed to be about the best book in TA. Perhaps you should start a thread about the uselessness of indicators.
Technical analysis existed long before the use of indicators. Indicators are a subset of TA. Now I understand why you are so frustrated and why you think TA is crap. Most everyone here already knows that indicators are tools, not answers. And all of us know - except seemingly you - that there is more to TA than indicators.
Regardless, despite my innumeracy, inability to detect nuance, and chimp-like teachability, I make a six-figure income - all six figures being to the left of the decimal
- trading my own account using the following TA components: moving averages, price-volume patterns, trendlines, s/r, and indicators - specifically stochastics, rsi, and macd. All except the indicators provide specific entry and exit points. The indicators provide divergence and directional information, but not specific entry and exit points.Know this however, regardless of the method(s) you use to enter and exit the market, you will have losses. The wins are going to be there. It's learning how to control the losses that will make the difference.
Quote from inandlong:
The basic issue is this thread is supposed to be about the best book in TA. Perhaps you should start a thread about the uselessness of indicators.
Technical analysis existed long before the use of indicators. Indicators are a subset of TA. Now I understand why you are so frustrated and why you think TA is crap. Most everyone here already knows that indicators are tools, not answers. And all of us know - except seemingly you - that there is more to TA than indicators.
Regardless, despite my innumeracy, inability to detect nuance, and chimp-like teachability, I make a six-figure income - all six figures being to the left of the decimal
Know this however, regardless of the method(s) you use to enter and exit the market, you will have losses. The wins are going to be there. It's learning how to control the losses that will make the difference.
Very nice post to ku2-2.
As member of the six digit to low 7 digit group you see ku2 as a person who is an "outsider" that has two characteristics than prevent him from moving across the Gaussian distribution to where you are:
1. His failure to rationally assess the opportunity in TA that he had a while back.
2. His unfortunate trading situation where he cannot, independantly, meld together the ingredients of a plan.
The theme of his posts as was pointed out, is collecting erroneous examples from other outsiders who perform mediocre analysis as does he. This set of bystanders have missed the clear messages of successful traders from whom they activily continue to estange themselves.
What is proven in trading.
1. Winners are a disctinct minority.
2. Primarily, TA is and has been advanced by winning traders. They invent and refine, and redefine defaults as a consequence of technological advance in data supply systems (You may note that ku2 is not currently using any modified default coefficients).
3. Only winners can backtest sufficiently to further understand their successes. It has never been possible for the vast majority of people to even get a foothold on backtesting. Academia and ku2 cannot backtest that is for sure. (see the track record of the highest salaried performance of academics and their PhD industry cohorts). Knowledge and understanding of markets is required to backtest. Not quantifying and qualitying the human factor in trading is the pre-eminant cause of backtesters not ever getting off the ground. (Ku2 has never included more than one independant variable in his back testing)
4. Trading is a micro science and not a macro science. There is nothing general about trading. All parts of the trading spectrum have both goods and bads; differentiating and compromise is the name of the game.
5. Relatavistic (not absolute) compound differentiable indicators prevail with successful traders while most beginners (unprofitable) use those that are convenient mathematical (arithimetic primarily) recitations of past financial activity.
I didn't say that. No wonder you have such an understanding problem. Reading is an active process, not a passive one.
You still can't deal with the basic issue. Fine, expand my comment beyond indicators to whatever. The issue remains, why do most TA books have zero performance data? The answer is obvious.
Essentially, your "issue" is a non-issue. TA is not a finite set of rules and applications, therefore it would be inappropriate to try and ascertain performance data. Any performance data ascertained could only be about the trader.
In all cases there remains the subjective interpretation and application of the information that TA provides the trader and investor. Through experience one learns to use the tools of technical analysis to define entry and exit points and refine trade management skills.
Aside: I can understand someone not understanding the true value of TA, especially when one is searching for a turnkey method void of work and risk.... like you. But for you to demean grob as if he has nothing to offer you, when it is blatantly clear that you haven't been very successful trading is a gross error in judgement.
I agree.
ku2, as you say has an impression that "performance" is the responsibility of the TA or a derivative of TA as in indicators.
His next P is "proven". For some reason he thinks an indicator has a proof.
Indicators only have utility to the extent that their user takes skillful signals from them. Obviously TA writeups and books and postings do elaborate on signal sets for given indicators. Moreso, in modern times the defaults on the indicator original design are no longer used and so the original signal sets need to be adjusted as well.
Why I noted ku2's failures in past tense is because, at the anger levels he continually displays, as was pointed out before, there is no possibility that he has any reasoning power or capability anymore. With respect to my comments he responded too.He pointed out this anger and its causes by giving us a recitation that most closely resembles some pissed off guy who doesn't have a clue looking at himself in a mirror and screaming at the messenger.
The Metastock CEO's book which deals with TA in the beginning and an alphabetized listing and description of indicators, is a perfect place to annotate all the latest coefficients and new defaults for almost all indicators.
This is more sophistry from you. TA books give recommended usages for their techniques. Those usages can be objectively tested. The fact that few authors ever supply test data is evidence that they know they are selling fluff and nonsense for the most part. They couldn't very well supply tests for the few worthwhile techniques without raising the obvious question of why the others weren't tested, so they supply test data for none. How else to justify a 400+ page book with an "appropriate" price tag if they only have a small number of techniques that actually make a profit and a large number of flawed gimmicks as filler?
And here we come to your basic position. You're a discretionary trader with pretensions of system trading. Whatever.
Okay kut'ie, you are entitled to your opinion. You don't think TA is any good so fine. Find another way. You've exposed yourself as one with nothing to offer but disgruntlement. Too bad. It's clear to me that you are intelligent. However, your rigidity and ego are blocking you from learning how to trade using the tools that will help you to succeed.
Good luck.
Good luck.