Understanding Markets - Beyond TA

#1
A quick question to all of you who love TA. Does current market reality reflect a scenario where MAs, indicators and S&R guide smart money?

I ask this question so that people correctly value TA while making decisions.

Here is a more specific question - what volume of money do you think (%) uses TA for making decisions?
 
#2
Guys, a question to get the brain cells ticking.

For scalpers : when you see an opportunity for quick entry on short TF charts, who do you think is quicker. You or a multi million dollar HFT colocated at the exchange?

Well, nothing smells ( at least therotically) of profits as much as stat arb. How many human arbitrageurs do you think make a comfortable living these days?

All I am saying in this thread is that the market structure and participants have changed so much that classical TA may not really help you. Its no use trying to trade a market the way it looked 10 years ago.

If enough people are interested we can look at truly profitable ideas based on TA like concepts (Price and volume). Examples of this being anticpating increases in IV and congestion breakout failures which will continue to work in the foreseeable future. The reason behind both of these still working is ..... Ka ching ! Thats right , if a large number of liquidity consuming HFTs start playing then ...... Yummy, tons of money if you understand this concept. BTW, HFTs dont give a fc*k about your S&R or MAs but they do love.... well thats for another time. BTW, you should really try understanding these new trading idiot boxes since they constitue over 50% of volume in many markets.

BTW, for people who love TA please do yourselves a favor and go visit the nearest trading floor. You will see why classical TA wont cut it for the most part.

Food for thought - very few large trading firms lose money these days - wonder why :)
 
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trader.trends

Well-Known Member
#3
If enough people are interested we can look at truly profitable TA ideas. Examples of this being anticipating increases in IV and congestion breakout failures which will continue to work in the foreseeable future.
Go ahead and expand on that. It would be educative and interesting.
 
#4
Guys, a question to get the brain cells ticking.

For scalpers : when you see an opportunity for quick entry on short TF charts, who do you think is quicker. You or a multi million dollar HFT colocated at the exchange?

Well, nothing smells ( at least therotically) of profits as much as stat arb. How many human arbitrageurs do you think make a comfortable living these days?

All I am saying in this thread is that the market structure and participants have changed so much that classical TA may not really help you. Its no use trying to trade a market the way it looked 10 years ago.

If enough people are interested we can look at truly profitable ideas based on TA like concepts (Price and volume). Examples of this being anticpating increases in IV and congestion breakout failures which will continue to work in the foreseeable future. The reason behind both of these still working is ..... Ka ching ! Thats right , if a large number of liquidity consuming HFTs start playing then ...... Yummy, tons of money if you understand this concept. BTW, HFTs dont give a fc*k about your S&R or MAs but they do love.... well thats for another time. BTW, you should really try understanding these new trading idiot boxes since they constitue over 50% of volume in many markets.

BTW, for people who love TA please do yourselves a favor and go visit the nearest trading floor. You will see why classical TA wont cut it for the most part.

Food for thought - very few large trading firms lose money these days - wonder why :)
why this thread was stopped!

I think sir Smart Trade and Savant Garde sir should take initiative to make this thread live. After all Smart Trade sir always said trading is to understand beyond technicals.
PLEASE...Savant Sir and Smart TradeJI; please make this ONE " KICKASS THREAD",
THANKS
 
#6
Yes.........please revive this thread.
They wont because they know that pattern or how algo trade and what HFT m............ures means and how they slaughter aam aadmi ...wait for some time what they will do..to they will vote in 2014 form ..... front....and prop trading firm will short the rupee.... we will not have petrol to run for one day. please connect the dot....we will remain aam trader...
 

oilman5

Well-Known Member
#8
Guys, a question to get the brain cells ticking.

For scalpers : when you see an opportunity for quick entry on short TF charts, who do you think is quicker. You or a multi million dollar HFT colocated at the exchange?

Well, nothing smells ( at least therotically) of profits as much as stat arb. How many human arbitrageurs do you think make a comfortable living these days?

All I am saying in this thread is that the market structure and participants have changed so much that classical TA may not really help you. Its no use trying to trade a market the way it looked 10 years ago.

If enough people are interested we can look at truly profitable ideas based on TA like concepts (Price and volume). Examples of this being anticpating increases in IV and congestion breakout failures which will continue to work in the foreseeable future. The reason behind both of these still working is ..... Ka ching ! Thats right , if a large number of liquidity consuming HFTs start playing then ...... Yummy, tons of money if you understand this concept. BTW, HFTs dont give a fc*k about your S&R or MAs but they do love.... well thats for another time. BTW, you should really try understanding these new trading idiot boxes since they constitue over 50% of volume in many markets.

BTW, for people who love TA please do yourselves a favor and go visit the nearest trading floor. You will see why classical TA wont cut it for the most part.

Food for thought - very few large trading firms lose money these days - wonder why :)
.....................................................................................
Since some interest is there & some complex questions r asked in this thread i try to answer using my observation.
1] Always other side is superior.
2] Stat arbitrage can always make money
3] classical TA never makes money, nor yesterday nor 10yr back.
we use TA to understand biases of strong money, personal bias(confidence to take a trade instead of random entry)MA to utilise TREND.
Smart BIG money can do whatever they like, unless against another similar big size fund playing in opp direction.
Individual loses because of this ,and should not play against them.
At normal resistance ,when collectively individual as a mob , creating more greed driven money with bigger strength can win over normal mutual funds,
So a trader must join to potential winning side-as aim is make money.
4] Any normal trader will lose , if stay in market when no opportunity exists.
All modern HFT/stat arb. normally make money ,due to less emotion,and best available brain planned it it Past condition.That does not mean they work in new futuristic condition.Its not infallible,-but workable and adaptable ,because some best brains plan it.
But if its medeocre , then its worst than av successful trader.
(if a normal researcher/trade entry player/quant get them/decipher it for personal benefit its ok( we know famous theft case)- but selling must be by a suitedbooted snake oil vendor.
Thats all
 

Tamil trader

Well-Known Member
#9
:thumb::thumb::thumb:
.....................................................................................
Since some interest is there & some complex questions r asked in this thread i try to answer using my observation.
1] Always other side is superior.
2] Stat arbitrage can always make money
3] classical TA never makes money, nor yesterday nor 10yr back.
we use TA to understand biases of strong money, personal bias(confidence to take a trade instead of random entry)MA to utilise TREND.
Smart BIG money can do whatever they like, unless against another similar big size fund playing in opp direction.
Individual loses because of this ,and should not play against them.
At normal resistance ,when collectively individual as a mob , creating more greed driven money with bigger strength can win over normal mutual funds,
So a trader must join to potential winning side-as aim is make money.
4] Any normal trader will lose , if stay in market when no opportunity exists.
All modern HFT/stat arb. normally make money ,due to less emotion,and best available brain planned it it Past condition.That does not mean they work in new futuristic condition.Its not infallible,-but workable and adaptable ,because some best brains plan it.
But if its medeocre , then its worst than av successful trader.
(if a normal researcher/trade entry player/quant get them/decipher it for personal benefit its ok( we know famous theft case)- but selling must be by a suitedbooted snake oil vendor.
Thats all
 

akhill

Well-Known Member
#10
Whatever Happens, whenever it happens, I believe the chart will tell you everything. Only thing is that you have to know how to understand the chart.

when you talk about MA's or SAR or whatever, you are talking on price terms. once you integrate time factor into the charts and work along with both price and time, I think you can understand the chart better.

There were instances where I tried to integrate time and price factors and have found the movements of stocks very much prior to major events, (Inflation announcements, ratecuts, results etc..,) and more than a few times, I took the positions blindly based on TA ignoring all the news and manipulations. It worked out for me considerable number of times. I am not saying that we can definitely predict the market with the help of charts, (I haven't done it consistently, though I had brief periods of triumph), but I believe that a chart will give you the knowledge of what is happening if you know how to use it.
 

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