tech/a said:Stopped using most years ago.
Most traders use a multitude of indicators/oscillators and as mentioned have no idea how to apply them.
RSI,Bollinger M/A's stochastic all are derived from Price.
Open,close high,low,volume and open interest are re arranged in 1000s of forms to read price action.
ALL ARE LAGGING.
Like all analysis they INDICATE.
Application of ANY trade methodology isnt what will make the profit.
ITS NOT WHAT YOU USE BUT HOW YOU USE IT
And that certaintly doesnt mean the literal sense of how to interpret a stochastic for example----!!
Until you understand this youll be forever combining/cross checking/referencing all sorts of analysis in the futile attempt to find.
SOMETHING THAT WORKS
Ask yourself this question.
Why with 1000s of indicators available to EVERYONE ---Fundamental AND technical--do very few trade at a consistent profit?
If it were analysis---any and or all analysis then ALL would be profitable.
Snake Pliskin said:Tech,
You seem to think most people employ too much analysis.
Snake Pliskin said:I see analysis as being very important in determining a high probability trade.
money tree said:I backtested every indicator on every stock using metastock. Not one gave better than 50/50. Ie random.
indicators dont work.
however, trendlines, support / resistance, fibonacci and REAL TIME price action methods DO work.
forex traders using indicators get their accounts wiped out faster than you can say "holy stochastics batman, what happened?"
wayneL said:I use them for scanning.
Why? because you can program them.
I don't use them to trade.
Why? Because I can see price action better by looking at the price than at an oscillator.
tech/a said:Yes thats correct.
I'm with Wayne and Money tree on this one.
I'd be interested in you doing an exercise using your analysis over say 20 selections,which you believe give you a "high probability trading opportunity" then looking back and seeing if in actual fact that analysis gave you what you hoped or expected it would.
Placing them here for all to watch would be interesting---I dont mean this to be an exercise in embarressment but one of practicallity.
See I'm of the belief that 90% or the time the market is efficient.
10% of the time its inefficient.(Could be 3%/97% point is its not balanced perfectly---all things are mostly equal.)
In that 10% you'll get outliers (Spikes,un common occurences V the other 90% of trading happening around you).
These are what will make you the money---infact if you (or anyone) are profitable and you look at your results I'll bet a very small % of trades made your profit.
Now I dont care what sort of analysis is used there is no way that you'll know a trade will be profitable----let alone massively profitable--the day you place the trade.
So you have to take many trades and every now and again a trade will home run 100% even 500%.
Now the analysis used to get on that trade will have been the same to get on every other trade yet this trade will make the majority of profit for you.
Does that mean your analysis discovered the trade and is very successful?
Or does it mean that its useless as it also found 80 trades that either lost or underperformed this trade.?
Milk Man said:What if the system operates over longer timeframes? Techtrader uses rolling highs but the rest is indicators isnt it? Mine is a bit shorter timeframe, just waiting to see if ive 'data mined' it. Just doing real time testing ATM(not backtesting).
Snake Pliskin said:Tech,
I don't need system reporting information.
Don't worry Tech, I understand that technical analysis is not the answer, but finding what rights for me is the answer and that you cannot deny.
tech/a said:Yes I agree.But suggest that you use oscillators only for EXIT and price action for entry. Easiest to set stops as well.(entry).
I'll explain something about ATR indicators and their use when I'm at home.
Ill post a chart.