Quote from CalVolibrator:
This is the biggest misleading post someone could have written. It works for you, fine. However, with almost 98% certainty it does not work for other newbies, no matter how closely they imitate your approach, no matter how hard they try. Heck, they do not even know how they get taken for a ride at the brokers. They have no idea about sound risk management. They just hear that you can glance at some charts and practice that for couple years and then it all comes together. What a bogus account.
NoDoji, I do not know how this all works for you, I hope it does as you claim. But you should know that the way you put it is exactly how all those TS vendors put it and that is very misleading.
I personally do not believe that TA leads to trading success, it works, sure it does, but when which formation re-appears is PURELY RANDOM, any logical thinking will lead to the same conclusion (example: I think we can all fully agree on the fact that no TA formation is able to predict the next outcome from NFP numbers, correct? Can we also agree that market reaction post NFP will mostly be a function of NFP and not much (if at all) of the then current chart formation? Can we then agree that once the market reaction to NFP numbers has fully materialized and a continuation of the chart formation has been built that the market will again look to react to market impacting news, economic releases, cross asset price behavior...the matter of fact is that most all players who trade that much size that they can move markets DO NOT TRADE BASED ON TECHNICAL ANALYSIS, ESPECIALLY NOT CHART FORMATIONS. Thus, I do not and have never seen in my long trading career (13 years and some months) how significant price action originated from a specific chart pattern. I guess the only exception to this empirical evidence are significant support and resistance levels, not in terms of absolute price but in terms of previous significant highs and lows, repeated rejections to break higher or lower,... So, again, if all this hocus pocus works for you, all the more power to you. But for most every beginner, as can be seen in the huge failure rate, it does not work. Of course not every failure can be attributed to the false promises TA gives but to a large degree beginners already hang themselves from the beginning without knowing by walking down the wrong path.
