What are the most important things for Technical Analysis?

Handle123 said:
Everything I do I can say is part of TA:
I do what most people don't have the stomach to do, seldom any of my trades are going in the direction I am trading. I counter-trend over 90% of the time within the structure of heavily back tested probabilities. Concentrating on risk management first and profits last. I will have defined expression of trend and will take trend trades and more than half of signals are against immediate trend. Ever see Roadrunner cartoon, huge rock is barreling down on top of coyote? I am the coyote. Ever play with YoYo? it only goes down so far? Coyote is at edge of how far YoYo should go is the premise. So trend might be up, I know on average how far the ES should retrace, so I buy it there, why have so many trades buying a breakout, that only extends risk, whereas I can buy something 2-3 points lower, risk much less and trade 5-10 more lots for same risk as someone doing breakout trades. So where many are first getting in on breakouts, I am feeding them their entries.

When is shark week, LOL

The deeper you study and test price, you find that the retail trader are my friends as they don't have emotional being and need that feel good signals and I need them and they need me to fed them their possible dreams.
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I counter-trend, too. Would love to diversify with the trend-following strategies, but can't find anything near with the same risk-adjusted returns as the counter-trend strategies.
 
nonlinear5 said:
I counter-trend, too. Would love to diversify with the trend-following strategies, but can't find anything near with the same risk-adjusted returns as the counter-trend strategies.
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Actually that is easier than you think, but it depends on what you define trend to be. Ever litely study Elliott wave? Three trends and 2 counter-trends? So the counter-trends are the dips, unlike Counter-trends at extremes that are formed and have unique patterns, Dips have unique patterns as well and they are different than those formed at extremes, often times they are crunched up tighter, also studying the instrument hopefully you are always trading the same. Where many traders get lost is they often add up all five waves together thinking that is going to be the length of possible Swing, but it is the opposite, as it becomes like 5 steps forward and 3 steps back, and even though much action may have taken place, in points like ES, it might be a 10 point Swing. One of many problems that younger traders have is they love to counter-trend trades, but don't have a clue if one Triple top will be the same as next Triple top, so even though it sounds so simple that they all should be the same, they are not in how they were formed and length of them, so it always best to well define chart pattern signal, and Triple tops and also so different than Triple bottoms in ranges and volumes and extensions. The deeper you back test into individual patterns, more you become aware of how to fine tune one's trading.
 
Handle123 said:
Actually that is easier than you think, but it depends on what you define trend to be. Ever litely study Elliott wave? Three trends and 2 counter-trends? So the counter-trends are the dips, unlike Counter-trends at extremes that are formed and have unique patterns, Dips have unique patterns as well and they are different than those formed at extremes, often times they are crunched up tighter, also studying the instrument hopefully you are always trading the same. Where many traders get lost is they often add up all five waves together thinking that is going to be the length of possible Swing, but it is the opposite, as it becomes like 5 steps forward and 3 steps back, and even though much action may have taken place, in points like ES, it might be a 10 point Swing. One of many problems that younger traders have is they love to counter-trend trades, but don't have a clue if one Triple top will be the same as next Triple top, so even though it sounds so simple that they all should be the same, they are not in how they were formed and length of them, so it always best to well define chart pattern signal, and Triple tops and also so different than Triple bottoms in ranges and volumes and extensions. The deeper you back test into individual patterns, more you become aware of how to fine tune one's trading.
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Thanks, Handle123. I will look into it.
Are you a participant here: https://caldaro.wordpress.com/ ?
 
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