Jack,
Several years ago I was unnecessarily rude to you in this thread. For that I apologise.
Scoob
Why Is The Obvious Not So Obvious?
- Thread starter nysestocks
- Start date
Jack,
Several years ago I was unnecessarily rude to you in this thread. For that I apologise.
Scoob
Last post for a while as this is not my thread and I do not wish to hijack it.
I have been sent a PM asking a question. It was a polite question and so I'm happy to answer. However, I'll repost the content here as any help I give, I will give to everyone.
Correct, nobody really knows where price is going. That is a point which is continually being drilled home in this thread. For example, you and I have no idea whether a large institution is about to initiate a VWAP algo to accumulate 100,000 contracts which will take out every resistance level that day.
I will state a few things plainly and clearly because they are so fundamental. There are price levels which have much more significance than others. These need to be identified and monitored. You need to be ready to react to what happens at these levels.
As has been stated, forget about % retracements, Fibs, Elliot Wave and all that horseshit. They have no foundation in the reality of the markets. I understand your thought process though as I briefly travelled down this route myself. When something is not understood it is easy to become frustrated, lose sight of the reality of the situation and seek answers in the illogical. It is the same weakness of the human condition that leads so many embrace religion. Do not complicate in your mind what the market represents. The market is simply the act of buyers and sellers meeting to transact with each other. Nothing more, nothing less. It moves due to imbalances generated by these two groups. Sometimes these imbalances may generate PA which happens to coincide with that predicted by moving averages, % retracements etc, but you will find no joy pursuing this path.
Be absolutely clear in your mind about two things:
Price moves up when not enough sellers are willing to transact at a particular price to meet the demand of buyers.
Price moves down when not enough buyers are willing to transact at a particular price to meet the demand of sellers.
I am teaching you to suck eggs here but it is such an important point. The algos employed by the exchange matching engines are intrinsically very simple. They just match buyers and sellers. Please do not waste your time looking for answers where there are none.
I'll finish up by posing a couple of questions which hopefully will get you thinking along the correct lines.
If you become a consistent winner then what does your account do?
If your account does this then what becomes your next problem?
Learn to differentiate between the market behaviour of the amateurs and the professionals. They both leave telltale tracks on the charts.
Best wishes to all.
I have been sent a PM asking a question. It was a polite question and so I'm happy to answer. However, I'll repost the content here as any help I give, I will give to everyone.
Correct, nobody really knows where price is going. That is a point which is continually being drilled home in this thread. For example, you and I have no idea whether a large institution is about to initiate a VWAP algo to accumulate 100,000 contracts which will take out every resistance level that day.
I will state a few things plainly and clearly because they are so fundamental. There are price levels which have much more significance than others. These need to be identified and monitored. You need to be ready to react to what happens at these levels.
As has been stated, forget about % retracements, Fibs, Elliot Wave and all that horseshit. They have no foundation in the reality of the markets. I understand your thought process though as I briefly travelled down this route myself. When something is not understood it is easy to become frustrated, lose sight of the reality of the situation and seek answers in the illogical. It is the same weakness of the human condition that leads so many embrace religion. Do not complicate in your mind what the market represents. The market is simply the act of buyers and sellers meeting to transact with each other. Nothing more, nothing less. It moves due to imbalances generated by these two groups. Sometimes these imbalances may generate PA which happens to coincide with that predicted by moving averages, % retracements etc, but you will find no joy pursuing this path.
Be absolutely clear in your mind about two things:
Price moves up when not enough sellers are willing to transact at a particular price to meet the demand of buyers.
Price moves down when not enough buyers are willing to transact at a particular price to meet the demand of sellers.
I am teaching you to suck eggs here but it is such an important point. The algos employed by the exchange matching engines are intrinsically very simple. They just match buyers and sellers. Please do not waste your time looking for answers where there are none.
I'll finish up by posing a couple of questions which hopefully will get you thinking along the correct lines.
If you become a consistent winner then what does your account do?
If your account does this then what becomes your next problem?
Learn to differentiate between the market behaviour of the amateurs and the professionals. They both leave telltale tracks on the charts.
Best wishes to all.
Nice. I think this is the only TA that we would need to think right.
Nice to see eveyone are friends again.
After the phase of consistently loosing comes a phase of consistently winning and account growth. Then overconfidence sets in and with it an even greater desire not to loose all those gains, leading to the boom and bust cycle, possibly several times, before real consistency develops.
Keep CONTROL and avoid CHAOS.
It's a start. And could be a finish, depending on your goals. However, it is not IT.
What's common about trendy days? And rangy days?
Quote from achilles28:
It's a start. And could be a finish, depending on your goals. However, it is not IT.
What's common about trendy days? And rangy days?
The most obvious common attribute is that both of them a zigzag.
...
Vendetta is supposed to mean what? - Blood Feud. The eternal battle between Bulls and Bears, right?
Starts with the letter V..