Technical Indicators Do they Assist ?

[oilman5]

due to question of drifting i contribute .
let us replace fullmoon ..with overbought...price has got full light.
newmoon..oversold..pessimistic days r over...light of price starts improving.
...so now its ta............
as on today..2 theme cyclicity and volatility ..i am working as time spares ..
cyclicity is workable...only phase i can little bit guess..but amplitude..till un predictable...hurst works ..definitely increase my knowledge..
mesa..is good...however .....to put entry ..hope it behave price will follow soon.......its not a traders tool...more a luck if i am right,.....next volatility.
it will rule indian market...
tradingmarket...site has done pioneer work on it,.also toby crabel.
read them it will be helpful...its justlike endgame..problem or oppurtunity slowly unfolding ...
most imp. +pt...it helps to execute[my weak pt zone]....since future..unfolding slowly...u can act ..decisively.
it helps to VISUALISE A TRADE....
callgiver..gives excellent idea...a biased directional view...an anticipatory reverse..to give ordinary mortal...a greed driven oppurtunity by which he earns..[but normally he himself can not put money on it......his own conviction is so poor........]
next comes analyst...an excellent if and but 'scenario view...always solve the crime..after it is committed.remember he is a failed trader...
more bad he lags conviction...he earns by postmortem.
.......if call giver and analyst...2 types of pro [prototype] r like this...where we ordinary mortal stand?...no where...
trading is not that easy man...its success rate <1%
.....fortunately successful traders help...not humbag like other profession.
here atleast ..3\4 successful ones r present....depending on their mood time availability..they come to resque/upliftment....fact is few survived titanic tragedy...u reqd a skill to survive in icewater.
...........what we can apply?
not a child...this time i am right...this time i am right...the joy of a callgiver...
....instead..how much money i can made out of this call.....
not an analyst...see i told u this....instead...with a risk analysis enter this trade...ready to be wrong always...get out early...AND FORTUNATELY PRESS THE WINNER AGGRESSIVELY when right
a trader is a far superior animal[god is right word]..he has to balance in between instinct of a callgiver and analyst...a futuristic view...an execution master ..+ applied money manager.
...he shall have to wait call is low risk one..give sufficient conviction to join..
face the dilemma if wrong...unlike praying ...quickly get out to save his hard earned money......only and only surprise occurs...he has to be WISE to his full capability.
judgement of ta...is basically search for continuity...and or reverse pt...
purpose entry /exit..
...for simplicity pl remember...after volatility contraction mode...volatility expansion shall come..directional bias u have to check...
for objective analysis...compare 5day volatility/60day volatility..[.in metastock]......just check in gr,A, stock..
...i tell u...will get good money..[novices dont see this adult movie]
thanks uasish for allowing my view

 

[instaalert]

instaalert,
Infact i have that archived in my 4shared a/c,one of the best on MACD & normally give the link to all .

Asish

Thanks a lot Asish, for archieving it for members' benefit.
Kindly let me know, whether there are any more of such articles.
With regards,
instaalert.

 

[gssv]

this forum is nice educative information for all the trader and investor
and it is very useful for new members .

 

[uasish]

14 period RSI's screen shot on an artificial scrip say Noise One.

 

[uasish]

21 period RSI on Noise One,

Which one is better & why.

 

[uasish]

Used RSI becoz,it is a momentum osscilator.To catch the turn of an established downtrend to its exact reversal point,RSI helps to do it ?

 

[uasish]

Alternatively you suggest any other indicator.

 

[karthikmarar]

Hi All

Asish put forth a relevant question. Unfortunately the thread is going nowhere. Let us see if we can bring it back to track. So I am sharing some thoughts here..

This forum members ,including self ,seems to face a subtle change ; a new conceptual change ;in a Neo / Ultrarian 'Thought Wave'
1) As price outcome is Random ,hence TA has no effective role to guide future price direction.
2) Hence let us transgress to a 'Statistical Module' than technical indicator based module.
.

Like Asish said there is growing school of thought that indicators are useless. Like I have always pointing out the current fashion is “It is all in the price Action”.

True eventually it is all the price action. What amuses me is many newbies to TA also say this. In my opinion to evaluate the price action by just looking at the chart takes years of experience, reading hundreds of charts. Or ..I wonder am I dumb?

This is where the indicators come into picture. The indicator themselves try to depict the price action in different ways so that it could be understood in a easier manner and one can develop certain rules to trade. Indicators are of great help for those starting TA and they gain experience slowly their understanding of the price action and effect of volume get better and eventually they may use less and less of the indicators. Another thing that amuses me is that those very people who say it is all price action have been posting chart with their own indicators embedded in them.

After years of studying charts, the charts themselves tell me a lot and yet I continue to use Indicators though many of them are my own. I don’t still trade without Indicators.. Or ..I wonder am I dumb?

Agreed that the very process of the market is a random one. TA..let us say…the more conventional one… works on the principle of probability. Sure, the past behavior of stock would not repeat in future. Here we are talking of the probability that ..say . a stock making higher high would continue to do so in the near future though there no guarantee.
We are talking of the probability that a stock which has seen lot of buying … over bought…would soon see selling on profit booking. ( here I would like to say that the current OB and OS indicators are rather lacking really). The randomness of the stock market has prompted many like Ehlers to apply the mathematics of random signal analysis to the stock market. But what is surprising is that many of simple conventional indicators quite well mimic the advanced mathematical Indicators…like ..EMA(EMA) could very well mimic the Laguerre Indicator…

I have been always against length blah blah posts… so let me stop here….and more later..

Regards

Karthik

 

[amitt29]

Excellent.Very clear thought process.

 

[uasish]

I think now this thread may get a direction.Let me put my stand on this subject without any ambiguity,i am 100% believer that TA not only do assist,
but without them i will be blind.This was my belief few yrs ago & still now.
1 simple logic,without datas nothing works & data is derived from O / H / L / C / Vol / OI .So any derivative of Price is nothing else but Technical.