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I think what is missing from a lot of successful discretionary traders is that there is often a lack of formal definition of terms they are describing. Whether it be a no-demand bar or a support resistance level. These could all be described formally and mathematically, so that one could go back after the fact and ask whether a VSA bar or SR level was valid. Without these definitions you are often left with answers such as screen time, experience, subjective feelings, which is all fine but not as helpful as a formal definition.
This is why the first VSA thread was so helpful in that PP did have pages and pages of formula to go with charts which described what he was seeing. This is not to say PP's VSA formulas were all correct, but it formalizes the trading method and allows for refinements and improvements. |
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I can speak only to the support/resistance business, and that, to a large extent, is why I did three weeks of RT commentaries in my Blog along with charts, to show where and why I located S&R at given zones and levels. Most people got it. Some didn't. But there's nothing super-sophisticated about it. It's an outgrowth of auction market theory, or MP if you're into that. If not, consider it as a variation on the Darvas Box.
As for "formalizing the trading method", that's certainly possible, but it is somewhat antithetical to Wyckoff's approach, and perhaps even to pre-TradeGuider
VSA. This is not to say that Wyckoff just went with his feelings. He incorporated wave charts, vertical charts, P&F charts, position sheets, trend lines, etc, etc, etc in an effort to enable people to use his methods even if they didn't understand the basis for the methods (as distinct from Dunnigan, who went to great lengths to tie his method to his thought process every step of the way; in order to use his method profitably, one would have to understand what he was thinking and why). Then, of course, there are those who can apply what they've read to produce the most gorgeous analyses you've ever seen. But they can't trade them.
Given the state of technology, I see no reason why one can't buy a "virtual tutor", who will guide him through dynamic charts (not just bar by bar scrolling charts), with Q&A and instant correction and frequent reviews. Though trading moving average crossovers is a lot easier.
