Who rules the charts?

[Rodbuilder]

There's no point us arguing over whether the chart is a downtrend or a range. These things are constructs to aid training, not DNA to aid positive forensic identification and prediction.

I don't trade in ranges because I don't have to. Nobody has to. There are always trends to follow and trends have a higher probability of continuation than reversal - that's why they are trends.

Ranges are difficult to find objective definitions for, and they have unclear FA rationale. Range trades rely on repeated reversals, which are inherently a low-probability price behaviour. It is hard to say that the most likely thing that price in a range will do is continue the same range. Its a poor strategy and definitely attractive to new traders.

Im sticking with 30 - 60 cent penny stocks right now and In so far as im new at this i really dont have much interest in anything unless its on the floor and has been (recently) at least 3 times az high as when i buy into it.

If im on the floor its pretty hard to fall down!!!

I made $2800 on my 1st trade (NUGL) and hope to keep that up.

 

[padutrader]

I don't trade in ranges because I don't have to.

i do
because the market is in range 70% of the time

 

[padutrader]

Range trades rely on repeated reversals, which are inherently a low-probability price behaviour.

i trade the market what ever it is doing

 

[padutrader]

downtrend or a range

it is always both....a range may be a trend in a longer time frame

all ranges are pull backs or trend in a longer time frame.

but this is off topic....

i am not sure what the question was...perhaps if it was rephrased......

 

[padutrader]

Its a poor strategy and definitely attractive to new traders.

this is recommended by Brooks
i am not sure if you could call him new

 

[padutrader]

And why would anyone want to do that, when they make more money with every tick the stock goes upwards?

since for a market to exist someone has to take the other side of the transaction [!!!!!!] there is obviously some reason or may be many reasons for somebody to do the low probability trade.

 

[vanzandt]

The chosen one rules the charts.

 

[tomorton]

i do
because the market is in range 70% of the time

The market is not in a range simply because it is not in a trend.

 

[padutrader]

or it is always in a trend if you go to the right time frame

The market is not in a range simply because it is not in a trend.

 

[tomorton]

or it is always in a trend if you go to the right time frame

That is obvious. I'm not a trader who can use the same TA-based strategy on time-frames that are several times larger or smaller than my standard. So my strategy, trades and trade management are based solely on daily charts. I cannot simply shrink the time-frame to 15-minutes and run the same strategy.