I've read somewhere here that someone tested "all indicators" on their computer systems. As nothing usefull came out of that (or at least nothing that made money consistently I guess), the conclusion was made that TA/indicators etc. don't work.
Who am I to disagree that so many things don't work indeed, the average ET reader will certainly agree.
It intrigues me however on how you would exactly do that, test "everything" on "any" indicator.
Computers don't have feelings, a blessing for many I suppose. But on the other hand I think you need to feel the heartbeat of the market. You must spend hours (x1000) behind that screen to see not only what does not work but hopefully also what DOES work.
You must do your own homework, due diligence or whatever you call it. It's not really realistic to expect the holy grail to fall out of the sky on your head just like that.
Anyway, those who tested "everything" probably forgot to test the "white arrow indicator". (a stupid name, I know, but in absence of anything better...)
The "tested everything" guys maybe missed this because it's not exactly an off the shelf thingy.
I attached a screenshot of it from my 100tick chart eur/usd from last week somewhere. The white arrows are generated by the indicator. I've put the green and red arrow on it afterwards for clarity but I guess you know the drill... which action should be taken when a white arrow pops up. I'm sure you guys don't mind that I've hidden some of the stuff on that chart.
Some say indicators lag on price action or that it's impossible to pick top/bottoms. Or maybe that it's a photoshop trickery. That is the easy way of course as this route takes very little effort. You can sit back and relax in your chair and nag for the rest of your life that TA does not work, that it's all an illusion.
I'm sorry Xspurt to post a chart of something that looks too good to be true (since you asked to only post charts proving TA does not work). Just let me know if you want to have it removed.
I've read somewhere here that someone tested "all indicators" on their computer systems. As nothing usefull came out of that (or at least nothing that made money consistently I guess), the conclusion was made that TA/indicators etc. don't work.
Who am I to disagree that so many things don't work indeed, the average ET reader will certainly agree.
It intrigues me however on how you would exactly do that, test "everything" on "any" indicator.
Computers don't have feelings, a blessing for many I suppose. But on the other hand I think you need to feel the heartbeat of the market. You must spend hours (x1000) behind that screen to see not only what does not work but hopefully also what DOES work.
You must do your own homework, due diligence or whatever you call it. It's not really realistic to expect the holy grail to fall out of the sky on your head just like that.
Anyway, those who tested "everything" probably forgot to test the "white arrow indicator". (a stupid name, I know, but in absence of anything better...)
The "tested everything" guys maybe missed this because it's not exactly an off the shelf thingy.
I attached a screenshot of it from my 100tick chart eur/usd from last week somewhere. The white arrows are generated by the indicator. I've put the green and red arrow on it afterwards for clarity but I guess you know the drill... which action should be taken when a white arrow pops up. I'm sure you guys don't mind that I've hidden some of the stuff on that chart.
Some say indicators lag on price action or that it's impossible to pick top/bottoms. Or maybe that it's a photoshop trickery. That is the easy way of course as this route takes very little effort. You can sit back and relax in your chair and nag for the rest of your life that TA does not work, that it's all an illusion.
I'm sorry Xspurt to post a chart of something that looks too good to be true (since you asked to only post charts proving TA does not work). Just let me know if you want to have it removed.
A few years back I posted something that JP refers to as dropping a gold bar on ET. I don't know of anyone else on ET who developed what I had shown as a starter for what is possible, but JP did.
It took him a few years to develop this to prove that indicators don't lag PA if they are set up correctly. I have the pleasure of trading with JP and this is how the signals work in real time.
Those squiggly lines on the bottom of the chart are freighted with meaning as they are all math based and the truth is that when stock indicators are run though back tests it shows the monkeys are on the job again.
TA works but the politically incorrect truth is very few pay their dues and it is one of the biggest reasons why TA can't work (for you).
That is the easy way of course as this route takes very little effort. You can sit back and relax in your chair and nag for the rest of your life that TA does not work, that it's all an illusion.
