Why technical indicators don't always work

[BSD]

some brokers DMA will reduce the data at your end by up to 3/4

lower tf effected most ~

tick
volume bars
mp volume print
bar extremes

Reason: ?

was told by more than one source = it is very common practice, it avoids lots of IT problems and IT departments time sorting out at the user end(to many pc"s to accommodate / various specs etc etc ) = one size fits all

ok if your M15 + / closer and it will bite you !

Andy

That's some pretty interesting info there Andy.



I'm demoing thinkorswim at nights right now and no idea what it is, but their charts often show a discrepancy to the ladder of up to over 10 points last night on the YM.

Being on a Mac I'm limited to IB - whose platform and lack of useable charts I don't really like, or alternatively TOS whose platform is fine as it goes, but such price / chart discrepancies are simply not on obviously.

Wonder if this throttling that you mention has anything to do with that.

 

[BSD]

I think across pretty much every directional trading style most traders would benefit if they'd learn to just choose being flat in choppy conditions.

Being flat is a tool that is just as important to account health as going long or short when conditions are more favorable and hence offer better chances for your method to follow through, and not end up in a fakeout-shakeout.

A scalper getting the same signal some time after the open or during lunch shouldn't really need to think about which signal to take.

;-)

Brett Steenbarger had an excellent post regarding this what is imo opinion the single most important aspect of trading, staying out when theres nothing going on but chop-chop, not digging yourself into a hole, but saving your equity for more opportune moments that offer a far higher probability of success:

"So often, as I work with traders, I'll see them struggle to formulate an opinion: are we going higher, or are we going lower?

As the morning market today has shown us, the answer to that question is sometimes "None of the above."

Note the sharply declining volume, identified by the blue arrow. As volume has come out of the market, volatility has narrowed to the point where there has been little short-term opportunity.

Understanding that volume-volatility connection is key for active traders. When volume decreases, it means that the large, directional players in the market are relatively absent. What remains are market makers and scalpers who play for ticks within narrow ranges, making money between bids and offers.

When volume comes into a market, we don't just get more of the same trade; we get a qualitatively different trade, because that added volume typically reflects a certain kind of market participant. Knowing how much trade is occurring is a good clue as to who is trading--and that is an excellent tell for how much movement we can expect."

TraderFeed: Is There Opportunity in the Market?

 

[tenbobtrader]

good post markus

what your infact saying is the market is offering a different opportunity

a trend of sorts and should be considered good while conditions hold

could go on for hours - days even

what tf is the chart ?

 

[BSD]

Hiya Andy, think it's a 5 min.

Not mine tho, Brett Steenbargers.

Yeah, I mean how many people - talking about intradaytraders now - have a good open when there is usually real volume and some real tradeable moves in markets, and then go on to lose all their morning proceeds and more on trades that only end up in fakeouts-shakeouts because there simply isn't any big money creating any larger moves that can be ridden for real profits ?

I honestly believe any system / method / moon cycle whatever that cuts it's losses with discipline can be made to work when you only trade when the market is making strong, clear moves.

I really believe that is the one holy grail, stay out when markets are chopping, preserve your capital for making money, not wasting it away just because you're bored and want some action.

Volume can help, but so can just looking at a chart if the moves are tradeable or not, if you're making smooth up and down cycles - I'm not talking about a huge one way trend either necessarily, just clear trends up and down and up and down on whatever time frame of your choice - or instead just spiking up and down all over the place.