Name For A Trading Style

[Interceptor]

Is there any particular name for the trading style whereby you search for repetitive price anomalies? ie, a certain stock may seem to rise at a certain time almost each day, or a particular index may retrace at a particular time etc. Whereas, at face value, these price actions may seem to be totally random, I am encouraged by certain examples which look to repeat a particular move with almost clockwork regularity.
As no indicators are used, it would seem to rule out attaching the label of "technical" to it.
Also, as there is no deeper analysis of fundementals involved, ditto.

 

[ronblack]

Is there any particular name for the trading style whereby you search for repetitive price anomalies?

Yes, it's called pattern trader...IMO

You ought to be very careful and apply Statistical Analysis to make sure there is a high probability that such anomalies will stay profitable in the future. Usually, most anomalies disappear as soon as someone tries to take advantage of them. This happens for various reasons.

Ron

 

[Interceptor]

Thanks for that. I can't say that I've heard the phrase before.
Is it a little unusual?

 

[TheBramble]

Isn't this just Cyclic Analysis?

And price moves, regular or otherwise, apparently caused by 'rational' effect or not, are not anomalies - they're just price moves.

 

[rathcoole_exile]

Isn't this just Cyclic Analysis?

it sounds a bit complicated. don't you have any really simple methods I can use to make my fortune ? there must be an easier way than all this talk about cycles, analysis blah blah blah

 

[Interceptor]

I.m not sure if that's a dig at a 'newb' question or not, but if it is it's ill judged and ungenerous.
Take something well known, such as the Opening Price Signal.
Technical trading, or fundamental trading? Or neither? Or both?
When I first started out, it was all about Holy Grail's and entries.
Then, MA's, stochs, RSI's etc.
Then fibs and pivots, and Elliot Waves.
Because I believed that, the more you know, and the more complex and multi-faceted your technical tools, the better it gets.
Then I read. A lot.
Market Wizards(New and Old), Jesse Livermore, Marber, Carter, Lien et al.
Because I believed that the more you read, the better you get.
But an uncomfortable truth began to emerge. Many of the great traders had utterly different trading styles to each other. Worse, they were disparaging about many, if not all, technical indicators. In fact, they almost seem to scorn the idea of sitting there with a screen littered with God knows how many indicators.
They seemed able to almost just observe a price moving around to know when to take a trade.
The words I keep coming across, again and again, PRICE ACTION.
So that's where I want to go, because I want to become a great trader. Not particularly for the money, although it's always nice, but as a personal mountain to climb.
And the "simplest" version of Price Action I've come across would seem to be repetitive patterns.
It's a starting point; no more no less.

 

[Mr. Charts]

it sounds a bit complicated. don't you have any really simple methods I can use to make my fortune ? there must be an easier way than all this talk about cycles, analysis blah blah blah

There are times when the market tends to exhibit reversals. None of them can be successfully traded. You just need to be aware of them.
The human mind has a propensity to see patterns when none exist and few people are objective and detached enough to see reality. They merely see what they wish to see and disregard the rest as it doesn't fit the "pattern".

Buy at 3.07pm and sell at 3.29pm works very well; sometimes 50% of the time.
Add some money management and one of those dirty rotten trading tricks known as stop losses and you too can be rich by Friday.
The other wonderful technique is to double position size every time you lose. If you run out of money you can always max out your credit card and borrow from your mum...like others on this board do.

No offence intended to you, x75.
Price action is indeed all; times, TA indicators, Gann, Delta, Elliot etc are all merely an industry. Watch and understand. Develop a feel.
Don't get caught in the endless journey, the endless search, the endless nonsense.
Your post #6 tells me you're on the right road.
Richard

 

[Interceptor]

Thanks for that.