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Old 05-17-2011, 02:13 PM   #17

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Re: What Really Works for Technical Traders

Quote:
Originally Posted by johnw »

What I struggle with, is why you refer to Bolly Bands, 20 ema, MACD, Hammers etc,
when it is obvious that you can read price behaviour so clearly.
My friend, All this "stuff" just acts like guard rails on a highway; these particular indicators have very special uses which I will most likely touch on at a later date.


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Phantom
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Old 05-17-2011, 02:26 PM   #18

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Re: What Really Works for Technical Traders

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Originally Posted by phantom »
My friend, All this "stuff" just acts like guard rails on a highway; these particular indicators have very special uses which I will most likely touch on at a later date.

Luv,
Phantom
Excellent ... I knew you would have an appropriate answer ..."guard rails" is not a term
I am familiar with and so I will await your ongoing postings with anticipation.
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Old 05-17-2011, 02:31 PM   #19

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Re: What Really Works for Technical Traders

Hi Phantom,

Although I respect your willingness to share your knowledge and I think your advice is decent...please allow me to add a few thoughts on technical analysis for all struggling traders reading this thread and show these thoughts in a chart based on your EUR/USD example.

Phantom described his 'hammer trade setup' as the safest bet you can make. I am a '100% technical analysis' trader and one rule I have is to avoid betting. When I make a trade it is purely based on the information from a number of indicators that proved to be 100% reliable and accurate in all market conditions. Reliable indicators does not guarantee a winning trade but trusting your tools is step one before you can apply a single piece of technical analysis in real trading. I think that's crucial advice for (new) traders.

Please take a good look at the chart below. It contains the same data as the EUR/USD (20 min) example of Phantom and shows a number of the indicators I use. As you can see the vertical lines and yellow trendlines prove that all indicators confirm price action. No need to bet.

Technical analysis is a very powerful way to position yourself at the right side of the next price direction no matter the timeframe but only if your TA tools automatically adjust to the constant changing market reality. And you need to define a clear set of rules based on your TA tools that work both in trending and choppy price action.

Hope this helps a bit...

Good Trading!



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Old 05-17-2011, 02:48 PM   #20

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Re: What Really Works for Technical Traders

I may as well through my hat into the Ring.

I employ a few methods in my trading. as some may know, some methods work better during certain Market conditions and not as well in others.

One method that works consistently well for me, in just about all market conditions, Trading trend line to trend line. Just for the sake of giving it a name I call it the "Too Trendy".
( I am sure others do the exact same thing and call it something else ).

On the attached AUD/USD 1 hour chart there are 2 trend lines, The lower was drawn on the 1 hour, the higher was drawn on the 4 hour. When price reaches the lower trend line it will either be rejected, or go through. If price is rejected at the trend line, I might take a short scalp, depending on the R/R. I price goes up through the trend line ( remember to always wait for the candle to close on whatever TF you are looking at) I would buy, looking for a TP at the 4 hour trend line. Care should be taken when price approaches previous highs ( there are 3 on this chart).

The other MAs and indi's on this chart have no bearing on this setup, I was just too lazy too create a new chart.
Also, I am not following A/U at the moment, I just happened to have the chart open when I read this thread.
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Old 05-17-2011, 02:48 PM   #21

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Re: What Really Works for Technical Traders

Attached a better version of the chart...my bad!!
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Old 05-17-2011, 02:49 PM   #22

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Re: What Really Works for Technical Traders

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Originally Posted by Flex1975 »

Phantom described his 'hammer trade setup' as the safest bet you can make. I am a '100% technical analysis' trader and one rule I have is to avoid betting. When I make a trade...[/IMG]
My friend, understand that I said bet, not uninformed gamble. Every single trade I make is a bet in the strictest sense but I NEVER make an uninformed gamble.

I think that you and I are on the same page here, just semantics...


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Old 05-17-2011, 03:00 PM   #23

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Re: What Really Works for Technical Traders

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Attached a better version of the chart...my bad!!
Top marks to your coding skills Flex1975 ...but what does it all mean.
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Old 05-17-2011, 03:23 PM   #24

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Re: What Really Works for Technical Traders

Flex1975, the chart is too small (and can't be enlarged) to see what indicators you are using. Would you care to tell us what indicators and settings for each, you are using? And what time frame are you using? I would like to try to examine your use of these indicators and time frames, also. Thank you.
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