The Psychology of Indicators

[Arthur Deco]

Are there days you weary of ET? Fear for the financial prospects of its members? But secretly gloat that as your trading partners they are dumber than you?

For me, that is every day. But today more so than most.

Let us take the disparagement by the SCT crowd of what Jack calls "the conventional orthodoxy" (what normal folks like you and me call classical TA, replete with its indicators, oscillators, S/R and edges).

Now la foule SCT says that those things don't work because they don't test out. Duh! Of course they don't test out! They only work when they work!

Let us say that I am a neo-trading-genius and I discover a new type of S/R based on correlations to a certain musical scales, and proudly dub them Liberace levels (Joe Doaks, don't get any wild ideas).

Now YOU look at my Liberace levels day after day and say "This is as useless as a ponytail on Jack Hershey". Price blithely ignores them in its daily meanderings. BUT, on the ONE day out of ten when price DOES trip over a Liberace level, I trade it!

Are you with me so far?

 

[no. 22]

Sure, Joe, I am with you.
I have always made my coin trading support/resistance. It works on the intraday charts and on the dailies -- well, except when it doesn't, but that's what stops are for. I am not so gauche that I have investigated the weeklies, but there may be possiblities there, too.

 

[IQ146]

hypo its me the salty guy that coded your stuff

look I am glad that you found support and resistance lines

basically if I can venture a guess (how silly of course I can)

you went through Jack's stuff and found that when one support fails, the larger support and resistance becomes the dominant one

ETC

we are not all slow you know

my alias is IQ 146,

But I totally agree with you, ET has so many dumb people I feel so alone

you know I forced myself to read Jack's post on hot business thread

my god............what a mind job

the guy is just really getting weird

 

[IQ146]

I think Jack is a perfect example of Extreme selective intelligence

he is smart in one way, but unable to form coherent thoughts in another

jack is a victim of his own biology

and make no mistake

we all are

 

[Baron Von Espy]

I've read some of Jack's stuff but it is so obviously written by a theorist and not a trader it is completely useless except as a mental exercise, it certainly wont make any money in the real world which may explain the complete lack of a track record

 

[rcanfiel]

Quote from Baron Von Espy:

I've read some of Jack's stuff but it is so obviously written by a theorist and not a trader it is completely useless except as a mental exercise, it certainly wont make any money in the real world which may explain the complete lack of a track record

I just challenged him to join in a contest. His response basically was that his Sharpe ratio, Profit Factor, etc. would be "too high" for my requirements. And thus he declined.

????

 

[Baron Von Espy]

Quote from rcanfiel:

I just challenged him to join in a contest. His response basically was that his Sharpe ratio, Profit Factor, etc. would be "too high" for my requirements. And thus he declined.

Not surprised, as I said he is obviously all theory