Best Thread Technical analysis... a load of ********

[DDI]

and on an hourly chart you can draw that falling resistance line from even further back - these things aren't always the be all and end all imho but it's one that seems to be being respected at the moment.
GJ

Exactly.....thats why I believe money management and discipline is the most important aspect. you take the trade when your criteria are met, and although you may have some losers, overall you should be positive if you are sensible in your sizes.

Furthermore from trendlines, I found, in the past few turbulent weeks, that over 80% of divergences between price and indicator worked (providing you are not too ambitious with profit targets. (for reversal trades am happy to take profits even at R/R ratio of 1, for trend trading at least 2.5).

The current 30min EURJPY is my favourite where all comes together:

1. Trendlines and support lines respected
2. Divergence (MACD/Price)at support worked,
3. The breakout with supportive ADX/DMI prroving successfull.

chart attached in post below

I went long this morning when it retraced slightly after the breakout. still in. Wish I had also bought at suppot/devergence but was not at my desk. Thats why I am working on programming so maybe I could have my strategies on autotrade (much easier said than done)

 

[DDI]

Eurjpy

 

[shadowninja]

Wow. That was a nice movement this morning!

 

[TopIQ]

Ta Is A Load Of Rubb....why?

Because current price is EVERYTHING! And it's either going in 3 directions ... UP, DOWN OR SIDEWAYS:cheesy:

THAT'S IT.

The main problem with trading is THE TRADERS....THE HUMAN BEING.

They are SCARRED TO DEATH OF LOSING A PENNY IN THE MARKETS!

95% lose money because they dont like a 5 point stop.

Even a 50 day moving average strategy makes money if you use a tight stop and limit your downside.

 

[Trader333]

95% lose money because they dont like a 5 point stop.

Even a 50 day moving average strategy makes money if you use a tight stop and limit your downside.

I can't say that I agree with this. The setting of a stop all depends on the volatility of the market in your chosen timeframe. If you are an EOD trader a 5 point stop for a market that ranges by 100 points a day will cause ongoing losses without exception. I do agree though that the issue is not taking a loss at the appropriate time.


Paul

 

[Rhody Trader]

Even a 50 day moving average strategy makes money if you use a tight stop and limit your downside.

Actually, a 50 day ma system would probably do worse with a tight stop. I think I tested that out once upon a time, but that way ages ago in my trading youth when I was messing with every indicator that came across my path. The memory is a bit hazy on the specifics.

 

[mr_cassandra]

I use RSI, Stochastics, Moving Averages, MACD and Fibonacci Retracements. Someone I know who has worked in investment banking and heads up a team of traders said that all these methods and the shapes were "a load of ********"; that the real price is the current price; that up and down movement is completely random.

Any thoughts? It seems to work for me, which has made me confused a bit.

There are several distinct ways to make money in the markets. The only mistake any one of their practitioners can make is to pronounce 'MY way is the only way'

Warren Buffet can't do what Victor Sperandeo does nor can Victor do what george Soros does. Peter Lynch made millionaires out of magellan holders never once using ta. My own work is all ta with no fundamentals.

 

[cycleidentifier]

Cassnadra, I agree totally. Everyone has their own way of doing things and what works for some may not work for others.

 

[DaxDestroyer]

I use RSI, Stochastics, Moving Averages, MACD and Fibonacci Retracements. Someone I know who has worked in investment banking and heads up a team of traders said that all these methods and the shapes were "a load of ********"; that the real price is the current price; that up and down movement is completely random.

Any thoughts? It seems to work for me, which has made me confused a bit.

OMG

Ask him, what he made over the last years :clap:

you might be surprised, how many people are out there, getting a good salary and contribute NOTHING

 

[Rhody Trader]

OMG

Ask him, what he made over the last years :clap:

you might be surprised, how many people are out there, getting a good salary and contribute NOTHING

Or he might have made millions because what they do is act as market makers and thus don't care much about direction. They just take the spread, over and over again.

It does amaze me, though, how arrogant folks can be regarding "the only way to make money in the market".

 

[mr_cassandra]

Very well said

Or he might have made millions because what they do is act as market makers and thus don't care much about direction. They just take the spread, over and over again.

It does amaze me, though, how arrogant folks can be regarding "the only way to make money in the market".

I think thats one of the worst things an investor can 'think'. The simple truth is there are many highly viable ways to make money in the markets. All coming from very different angles but sharing one common requirement: hard work, perseverance and the unwiliingness to accpet the negativity of others who won't try.

 

[DaxDestroyer]

Rhody ? Please don't tell me, that you are a marketmaker

 

[Rhody Trader]

Rhody ? Please don't tell me, that you are a marketmaker

Definitely not. I'm more a directional type, with some scalping strategies mixed in at times.

 

[DaxDestroyer]

Good!!! So the best of luck to you

 

[Rhody Trader]

My point with the earlier post about market making is that in many cases institutional traders operate very differently than us little peons. Part of it is a function of the much larger size they are generally playing with, and part is just simply the necessity of the position they are in. A forex dealer, for example, is just that - a dealer. He's not a position trader. He's out to make money on the spread, perhaps with a bit of scalping in there, not by taking directional bets.

 

[DaxDestroyer]

Thanks I know
But if they want to be really successful, they use charts