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. ...

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Old Sep 14, 2017, 2:21am   #61
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Originally Posted by barjon View Post
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.
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Old Sep 14, 2017, 2:23am   #62
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wisefoolx started this thread 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.
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Old Sep 14, 2017, 2:26am   #63
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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.
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Old Sep 14, 2017, 8:59am   #64
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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.
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Old Sep 14, 2017, 9:06am   #65
 
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Me and you, we is largely the same bruv! We dont know shît! The difference is, I know I dont know shît!!
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Old Sep 14, 2017, 11:08am   #66
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wisefoolx started this thread And what's wrong with estimate ?
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Old Sep 14, 2017, 6:05pm   #67
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In my opinion, TA doesn't work because numbers are meaningless.
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Thats just b0llox trading. Its all b0llox Spencer.
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Old Sep 14, 2017, 6:20pm   #68
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You can use any indicator for anything , it's your free choice...
thats brilliant thanks

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Originally Posted by wisefoolx View Post
.. but I would insist on objective calculations...
how about this one for RSI:

RSI = 100 - (100 / 1+ RS)

?
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Old Sep 14, 2017, 9:29pm   #69
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wisefoolx started this thread 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.
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Old Sep 14, 2017, 10:27pm   #70
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Solution : Use equations based on proven hard science concepts.
You cannot use it to demonstrate a profit. The solution is useless.
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Old Sep 14, 2017, 10:55pm   #71
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RSI.. is thoroughly unobjective and totally subjective
RSI is objectively this: 100 - 100 / (1 + RS)

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

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Solution: Use equations based on proven hard science concepts.
i think you are taking the word momentum too literally
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Old Sep 14, 2017, 11:01pm   #72
 
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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.
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Old Sep 15, 2017, 12:00am   #73
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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.
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Old Sep 15, 2017, 1:29am   #74
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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.
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Old Sep 15, 2017, 7:41am   #75
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In my opinion, TA doesn't work because numbers are meaningless.
And I'm not necessarily disagreeing with that.
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