## The Problem with Technical Analysis

This is a discussion on The Problem with Technical Analysis within the Technical Analysis forums, part of the Methods category; Originally Posted by barjon Ok, so rate of change (?) of price (or some other definition) x volume = momentum. ...

Sep 14, 2017, 2:21am   #61
Joined Aug 2017
Quote:
 Originally Posted by barjon Ok, so rate of change (?) of price (or some other definition) x volume = momentum. Mmmm, maybe. For me, directional momentum is one way traffic - minimal pullbacks before charging off again. Therefore, I don't see volatile price as having any directional momentum even when it has changed hugely from 10am to 11am (or whatever period) during which time it may have hit the highs and lows several times. As DBP has it, price is continuous and that change would just be an accident of timing.
That should be volume x velocity. To me, You can use any indicator for anything , it's your free choice but I would insist on objective calculations. So as for momentum indicators, we have been told by TA these are supposedly for range bound markets but we all can use it for whatever we like.

 Sep 14, 2017, 2:23am #62 Joined Aug 2017 Why is it that it's always mostly the same group of trollers going around and around trying to get attention ? It's destroying this forum.
Sep 14, 2017, 2:26am   #63
Joined Aug 2017
Quote:
 Originally Posted by Kaeso ok no actual answers to the questions just more confused babbling.. ill leave you to it
If you really wanted an answer you would have been respectful enough to read the entire article properly or at least try ask genuinely for clarification instead you did the the T thing.

Sep 14, 2017, 8:59am   #64
Joined Apr 2016
Quote:
 Originally Posted by wisefoolx To me, You can use any indicator for anything
Not really. You haven't been able to use anything at all (tea leaves, TA, or anything else) to make proven profit for instance.

Last edited by EnlightenedJoe; Sep 14, 2017 at 9:07am.

 Sep 14, 2017, 9:06am #65 Joined Nov 2003 __________________ Me and you, we is largely the same bruv! We dont know shît! The difference is, I know I dont know shît!!
 Sep 14, 2017, 11:08am #66 Joined Aug 2017 And what's wrong with estimate ?
Sep 14, 2017, 6:05pm   #67
Joined Sep 2010
In my opinion, TA doesn't work because numbers are meaningless.
__________________
Quote:
 Originally Posted by Lee Shepherd Thats just b0llox trading. Its all b0llox Spencer.

Sep 14, 2017, 6:20pm   #68
Joined Oct 2015
Quote:
 Originally Posted by wisefoolx You can use any indicator for anything , it's your free choice...
thats brilliant thanks

Quote:
 Originally Posted by wisefoolx .. but I would insist on objective calculations...

RSI = 100 - (100 / 1+ RS)

?

 Sep 14, 2017, 9:29pm #69 Joined Aug 2017 RSI = 100 - (100 / 1+ RS) Where RS = Average of x days\' up closes / Average of x days\' down closes This has no foundation in any concept in hard science and has been plucked out of the air or even other places by Welles Wilder. It is thoroughly unobjective and totally subjective. What true value does it have ? Solution : Use equations based on proven hard science concepts.
Sep 14, 2017, 10:27pm   #70
Joined Apr 2016
Quote:
 Originally Posted by wisefoolx Solution : Use equations based on proven hard science concepts.
You cannot use it to demonstrate a profit. The solution is useless.

 The following members like this post: Kaeso
Sep 14, 2017, 10:55pm   #71
Joined Oct 2015
Quote:
 Originally Posted by wisefoolx RSI.. is thoroughly unobjective and totally subjective
RSI is objectively this: 100 - 100 / (1 + RS)

Quote:
 Originally Posted by wisefoolx What true value does it have ?
RSI values range from 0 to 100

Quote:
 Originally Posted by wisefoolx Solution: Use equations based on proven hard science concepts.
i think you are taking the word momentum too literally

Sep 14, 2017, 11:01pm   #72

Joined May 2011
Quote:
 Originally Posted by EnlightenedJoe Forget all this sh*t and just bet £30/point should get things moving in a jiffy. I guarantee it, and you won't have time for math after that.
haha like it, been there

There is only momentum days at the end of the day, grinding chop days are to be avoided, recognising a decent flow day is the only way to make a pound these days, the consistent large 500 point + swing days seem a thing of the past.

 The following members like this post: Oscar Reed
Sep 15, 2017, 12:00am   #73
Joined Aug 2017
Quote:
 Originally Posted by Kaeso RSI is objectively this: 100 - 100 / (1 + RS) RSI values range from 0 to 100 i think you are taking the word momentum too literally
Momentum in Physics is a fact proven a million times over - in other words it is an objective standard of measure. Rsi is invented by wilder. I personally prefer to follow the objective laws of physics rather that some random idea.

But nothing to stop you using both if that's your cup of tea.

Last edited by wisefoolx; Sep 15, 2017 at 7:00am.

Sep 15, 2017, 1:29am   #74
Joined Apr 2016
Quote:
 Originally Posted by wisefoolx Momentum in Physics is a fact proven a million times over. Rsi is invented by wilder. I personally prefer to follow the laws of physics rather that some random idea.
Physics is irrelevant for trading. Trading is about economics. It's is about what your counterparty chooses to do with the £5-£30/point money that you hand over to them. Invariably it becomes their money for beginners who don't understand what the game is about.

Sep 15, 2017, 7:41am   #75
Joined Aug 2017
Quote:
 Originally Posted by brewski1984 In my opinion, TA doesn't work because numbers are meaningless.
And I'm not necessarily disagreeing with that.