Fact is everything works, everyone trades patterns FA / TA / voodoo, its just everyone doesn't recognize what they do is a pattern.
Its the application of the method that fails the trader.
Watch the posting here BTW and see the patterns.
'Cos 9 million potentially successful 'Tech Trader disciples' are in fact "sceptics".
I was just adding to your comment.
TA doesn't work. Test it.
I thought you said you used charts to trade? (I Must have mistaken you for someone else)
So if you don't use technical analysis, I take it you trade fundamentals?
It seems the possibility of Technical Analysis sans charting has escaped the attention of some members.
It also seems that some have misconceptions regarding the extensive realm of possible trading modalities.
To opine that such a vast realm is confined to a mere two subsets (i.e. T/A and F/A only) and to further assert the mutual exclusivity of those subsets, suggests an absence of understanding of the true nature and function of financial markets.
It seems the possibility of Technical Analysis sans charting has escaped the attention of some members.
It also seems that some have misconceptions regarding the extensive realm of possible trading modalities.
To opine that such a vast realm is confined to a mere two subsets (i.e. T/A and F/A only) and to further assert the mutual exclusivity of those subsets, suggests an absence of understanding of the true nature and function of financial markets.
Quantitative Analysis?
FA checklists and TA patterns provide an objective analysis that make us feel good about starting a trade. That's it.
Our psychological bias makes us think they are high probability events that will provide the positive edge that we need to profit. The reality is that all patterns do not have an edge. Of course we disbelieve the facts and continue to look for the "Holy Grail" pattern (beginners' cycle).
The best patterns for each of us fit our beliefs about market behaviour.
I don't really know How T/H Trades but understand his analogy that its like Spotting your mother in a crowd.
You can identify her instantly yet others have no idea she is there!
Actually I trade with 25 charts on my screens, don't know a thing of the fundamentals of the companies I trade ( in fact I trade an Index and have done literally 1,000s of trades and don't even know what companies make up that index)I thought you said you used charts to trade? (I Must have mistaken you for someone else)
So if you don't use technical analysis, I take it you trade fundamentals?
Okay so TA doesn't work, FA doesn't work. Time for some elaboration for those wondering, what does then? Because TA and FA are all most people know.
So again, as no one answered me last time, what else is there? If TA and FA don't work, what does? Also I doubt it matters about the application if there is no statistical edge in what you're looking for?
Its you ability to learn and use info to colour your bias that makes you a successful trader. Not waiting for a H&S pattern to show. Once your bias is leaning the right way you will find some pattern in the chart to risk dollars on an uncertain outcome.
Hi Trembling Hand,
I would like to ask how you form your "bias" to go either long or short for the instrument you are trading.
With thanks,
Tradezy
Hi Trembling Hand,
I would like to ask how you form your "bias" to go either long or short for the instrument you are trading.
With thanks,
Tradezy
Errr I would have to say something entirely different..Or do you do something else entirely?
To work out my bias I have been looking at daily candlesticks (1 year timeframe). I work out which way the market is moving based on the current trend. I then switch to a 5 minute candlesticks (1 week timeframe).
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