this is irrelevant psycho babble. Can this method be tested and if so, please post the results. The perfect website record not withstanding.
Regards,
Surf
Why does technical analysis work
- Thread starter Demarco8
- Start date
this is irrelevant psycho babble. Can this method be tested and if so, please post the results. The perfect website record not withstanding.
Regards,
Surf
woe that so many threads seem worthy, trend in some direction of science or analysis for a moment, then deteriorate into emptiness...
http://dictionary.reference.com/search?q=emptiness&x=0&y=0
oh well
http://dictionary.reference.com/search?q=emptiness&x=0&y=0
oh well
Interesting, I'll look at some in TS. Do you find breakout systems work better or what types of models benefit the most from these bars? I'm currently looking at an es chart with 100k bars and comparing it to 60 minute bars. What strikes me initially is there appear to be more bar opens and closes at the extremities. There also are no gaps as far as I can tell, which is good and bad. thanks for your input.
If you use 24 hour data, there will rarely be any gaps. Just fluid movement of price.
Breakout systems are worthless. They miss the move into the trend.
I use a combination of two charts; one for trend and a specific subset of that chart for taking entries and exits. Think about Einsteins "Brownian Motion", http://www.stat.umn.edu/~charlie/Stoch/brown.html . The combination of the two is sweet. Think about the charts you are creating and stay away from whole numbers.
Every variable except price is eliminated. LOL !
This is quite the comedy show.
Regards,
Surf
Remember that Price, Volume and Time are the key factors when looking at any market.
Price is a non variable because once a specific price is paid for a contract or share, it can't be rescinded. That makes volume a fixed part of the equation as well. That leaves us with one part of the equation remaining, time. This is why Volume Bar Charts and not time based charts are best. These charts tie the three parts together in a tight bundle of clarity. Now comes the human factor, create a perfect "Stack" of charts, starting with the fastest and working your way to the slowest, each incrementally greater than the last. Think about the concept of the Russian dolls. One fitting neatly inside the next. Use any combination of two adjoining charts to give you Trend (slowest) and Trading (next fastest). Be sure the charts are incrementally symmetric.
The hardest part of this whole scenario is determining how to use a single indicator to confirm and verify the price action. I said confirm and verify too, not trade from. Indicators should be used to confirm and verify NOT to trade from. Indicators lag and are inaccurate for trade execution. Next, one needs to set a point where extreme oscillations are determined so the term "Trend" can be objectively defined inside this environment. This took me 3 years of research to figure out and confirm. It wasn't easy but it can be done. Determination is a wonderful human trait. This is a major step for you toward creating an environment where "Trend" can be quantified.
My grandmother impressed upon me as a child that "can't" was a defeatist term and had no business in a successful person's vocabulary. God, I wish I could hug my grandma now!
So in the end, why does technical analysis work ?
For people who are successful with TA, why do you think your TA works ?
For those of you who like S/R levels, pivot points, is it because people look at these levels and it is a self fulfilling prophecy ? Thus these become critical levels ?
For those that look at chart patterns, candle patterns, higher highs/higher lows it is because history repeats itself ?
For those that apply other scientific fields unto the market, even though it may do well in other fields, why do you believe it will work well on the market ?
What are your beliefs about the market and what aspect of it, in terms of the auction process, demand/supply or human nature is your TA trying to help you objectively and consistently exploit ?
For people who are successful with TA, why do you think your TA works ?
For those of you who like S/R levels, pivot points, is it because people look at these levels and it is a self fulfilling prophecy ? Thus these become critical levels ?
For those that look at chart patterns, candle patterns, higher highs/higher lows it is because history repeats itself ?
For those that apply other scientific fields unto the market, even though it may do well in other fields, why do you believe it will work well on the market ?
What are your beliefs about the market and what aspect of it, in terms of the auction process, demand/supply or human nature is your TA trying to help you objectively and consistently exploit ?
And one final question ... why not read the rest of the thread where all of these questions have already been answered both yes and no?