Only for INDICATOR JUNKEYS!!!!!!!!

#1
The problem with creating a business based on the markets is that it seems like they are consistently changing and there is a lot of risk!

As you know, the markets go up one day and down the next!

I was really confused which way the market would turn, and since I hated the idea of losing money I tried to "predict" the market's direction because that's how I THOUGHT money was made.

I got really, really good at 'technical analysis'... I THOUGHT that it held the key to profits... if I could tell where the market was headed it would be easy to make money, right?

I learned all about waves and candle sticks, MACD, ADX, CCI, Bollinger Bands and Fibonacci and hundreds of chart 'patterns'... and I thought I 'knew' something' about the future of the market!

Frankly, technical indicators are like crutches (AND IF YOU DEPEND ON THEM TOO MUCH YOU ARE HANDICAPPED)- they only help to support and validate your trading ideas already formed in your mind.
They do not help you become a better trader or see the reality of the market.
=====================================================
There are only 3 technical indicators you need to run this business:
VALID support,
VALID resistance and
trend lines.
That's' it. We keep it simple.
Simple makes me money.
=======================================================
I also discovered the TOP 1% of all traders do the EXACT opposite of what I tried to do when I first got started (predict the market)... The fact is...
Top traders NEVER try to predict the
market they only manage risk.


Most of the elite traders don't care if the market goes up or down - they make money either way. They use charts sparingly.

All top traders do is manage their risk and take advantage of the only truths of the market - the ONLY absolute truths of the market.

SOME THING TO MENTION
STOPLOSS IS VERY VITAL TO TRADING SUCCESS.

which is best stoploss?
A good stoploss is based on volatility. ED Pottasch,s vstop is great. use at least 2 times ATR(10) as minimal breathing room for long trades on eod charts.
you can use 1.5 times ATR(10) As breathing room for intraday trading below current price for long trades.
Some guys use fixed percentage or fixed points stops-I dont like these-my choice.
USING 3 *ATR OR 4*ATR stops is found useless as stoploss is never triggered or it simply doesnt do its job.
One nice method is use 3atr for initial stop and once price picks up favourable move,reduce it to 2atr,then to 1 atr as price starts dropping from highest high.
Higher timeframes use bigger stops be careful.
ATR is average true range-the distance between high and low or low and high over n periods or n bars. Suppose a stock moves 4 rupees over 10 bars,then it needs a breathing space of at least 4 ,if you keep your stop as 3 rupees below current price,price hits stoploss in no time as stop happens to be inside breathing space.
IT is suggested that we keep stoploss 1.5 times atr below price for long trades on intraday or 2 times atr below price for long trades for eod daily charts. tst it if it suits your traded instrument or not.then you can adjust it.

please read the article
http://www.investopedia.com/articles/trading/09/volatility-stops.asp
=========================================================================================================
SUPPORT RESISTANCE
How do you locate support or resistance?
=======================================================================================================

rule1. Locate current price. rule2 look to leftside and find a low in price below price 3 draw a line this is support.
resistance
1 look to leftside of current price 2.find a high above current price 3 mark a line it is resistance.
continue same towards lower low get support level nextand towards higher high get resistance level next.
That is it.
dont do something else



OBSERVE-lOCATE A VALID SUPPORT ZONE & WAIT FOR PRICE TO REVISIT AME ZONE LATER TO TRADE.
Support resistance doesnt work much on 5min or 10 min or 20min charts,they work better on 4 hour or dailiy,weekly,monthly chaRTS.
SO PLAY SAFE.
Trendlines
4 hr trendlines with reasonable slope work well,after 3 touches trend fades. each trendline has its speed,the next trendline can form from initial trendline with higher speed or lower speed.
 
Last edited:

DSM

Well-Known Member
#2
Great post Ford, as always - insightful - keep them coming.

The problem with creating a business based on the markets is that it seems like they are consistently changing and there is a lot of risk!

As you know, the markets go up one day and down the next!

I was really confused which way the market would turn, and since I hated the idea of losing money I tried to "predict" the market's direction because that's how I THOUGHT money was made.

I got really, really good at 'technical analysis'... I THOUGHT that it held the key to profits... if I could tell where the market was headed it would be easy to make money, right?

I learned all about waves and candle sticks, MACD, ADX, CCI, Bollinger Bands and Fibonacci and hundreds of chart 'patterns'... and I thought I 'knew' something' about the future of the market!

Frankly, technical indicators are like crutches (AND IF YOU DEPEND ON THEM TOO MUCH YOU ARE HANDICAPPED)- they only help to support and validate your trading ideas already formed in your mind.
They do not help you become a better trader or see the reality of the market.
=====================================================
There are only 3 technical indicators you need to run this business:
VALID support,
VALID resistance and
trend lines.
That's' it. We keep it simple.
Simple makes me money.
=======================================================
I also discovered the TOP 1% of all traders do the EXACT opposite of what I tried to do when I first got started (predict the market)... The fact is...
Top traders NEVER try to predict the
market they only manage risk.


Most of the elite traders don't care if the market goes up or down - they make money either way. They use charts sparingly.

All top traders do is manage their risk and take advantage of the only truths of the market - the ONLY absolute truths of the market.
 
#3
Dear Friends, is there any way to see OLD AUTOMATIC ANALYSIS and New Analysis to show in the chart, and once the signals come, as for me, they don't come in the chart unless I double click on the signals by analysis
 
#4
The problem with creating a business based on the markets is that it seems like they are consistently changing and there is a lot of risk!

As you know, the markets go up one day and down the next!

I was really confused which way the market would turn, and since I hated the idea of losing money I tried to "predict" the market's direction because that's how I THOUGHT money was made.

I got really, really good at 'technical analysis'... I THOUGHT that it held the key to profits... if I could tell where the market was headed it would be easy to make money, right?

I learned all about waves and candle sticks, MACD, ADX, CCI, Bollinger Bands and Fibonacci and hundreds of chart 'patterns'... and I thought I 'knew' something' about the future of the market!

Frankly, technical indicators are like crutches (AND IF YOU DEPEND ON THEM TOO MUCH YOU ARE HANDICAPPED)- they only help to support and validate your trading ideas already formed in your mind.
They do not help you become a better trader or see the reality of the market.
=====================================================
There are only 3 technical indicators you need to run this business:
VALID support,
VALID resistance and
trend lines.
That's' it. We keep it simple.
Simple makes me money.
=======================================================
I also discovered the TOP 1% of all traders do the EXACT opposite of what I tried to do when I first got started (predict the market)... The fact is...
Top traders NEVER try to predict the
market they only manage risk.


Most of the elite traders don't care if the market goes up or down - they make money either way. They use charts sparingly.

All top traders do is manage their risk and take advantage of the only truths of the market - the ONLY absolute truths of the market.
I agree to the fullest with what all you have mentioned. :thumb:
 

colion

Active Member
#5
The problem with creating a business based on the markets is that it seems like they are consistently changing and there is a lot of risk!

As you know, the markets go up one day and down the next!

I was really confused which way the market would turn, and since I hated the idea of losing money I tried to "predict" the market's direction because that's how I THOUGHT money was made.

I got really, really good at 'technical analysis'... I THOUGHT that it held the key to profits... if I could tell where the market was headed it would be easy to make money, right?

I learned all about waves and candle sticks, MACD, ADX, CCI, Bollinger Bands and Fibonacci and hundreds of chart 'patterns'... and I thought I 'knew' something' about the future of the market!

Frankly, technical indicators are like crutches (AND IF YOU DEPEND ON THEM TOO MUCH YOU ARE HANDICAPPED)- they only help to support and validate your trading ideas already formed in your mind.
They do not help you become a better trader or see the reality of the market.
=====================================================
There are only 3 technical indicators you need to run this business:
VALID support,
VALID resistance and
trend lines.
That's' it. We keep it simple.
Simple makes me money.
=======================================================
I also discovered the TOP 1% of all traders do the EXACT opposite of what I tried to do when I first got started (predict the market)... The fact is...
Top traders NEVER try to predict the
market they only manage risk.


Most of the elite traders don't care if the market goes up or down - they make money either way. They use charts sparingly.

All top traders do is manage their risk and take advantage of the only truths of the market - the ONLY absolute truths of the market.

SOME THING TO MENTION
STOPLOSS IS VERY VITAL TO TRADING SUCCESS.

which is best stoploss?
A good stoploss is based on volatility. ED Pottasch,s vstop is great. use at least 2 times ATR(10) as minimal breathing room for long trades on eod charts.
you can use 1.5 times ATR(10) As breathing room for intraday trading below current price for long trades.
Some guys use fixed percentage or fixed points stops-I dont like these-my choice.
USING 3 *ATR OR 4*ATR stops is found useless as stoploss is never triggered or it simply doesnt do its job.
One nice method is use 3atr for initial stop and once price picks up favourable move,reduce it to 2atr,then to 1 atr as price starts dropping from highest high.
Higher timeframes use bigger stops be careful.
ATR is average true range-the distance between high and low or low and high over n periods or n bars. Suppose a stock moves 4 rupees over 10 bars,then it needs a breathing space of at least 4 ,if you keep your stop as 3 rupees below current price,price hits stoploss in no time as stop happens to be inside breathing space.
IT is suggested that we keep stoploss 1.5 times atr below price for long trades on intraday or 2 times atr below price for long trades for eod daily charts. tst it if it suits your traded instrument or not.then you can adjust it.

please read the article
http://www.investopedia.com/articles/trading/09/volatility-stops.asp
SUPPORT RESISTANCE
OBSERVE-lOCATE A VALID SUPPORT ZONE & WAIT FOR PRICE TO REVISIT AME ZONE LATER TO TRADE.
Support resistance doesnt work much on 5min or 10 min or 20min charts,they work better on 4 hour or dailiy,weekly,monthly chaRTS.
SO PLAY SAFE.
Trendlines
4 hr trendlines with reasonable slope work well,after 3 touches trend fades. each trendline has its speed,he next trendline can form from initial trendline with higher speed or lower speed.
This is an advertisement for a simple trading course:

http://itradingpro.com/about-itradi...377812382.0723659992218017578125#.Uh-_qV_D808

Keep in mind that there are many successful traders that use a variety of ways to analyze markets and usually a variety of techniques are used simultaneously. This guy is pushing his courses but there are many others available. Choose wisely (check the track record, etc.) before spending money.
 
#6
Hi tradingpro is a failure.
can you make money with 47 dollar course?
NO,IT IS NOT POSSIBLE.
It is what you pick of anything that is worth.

no need to buy any course.
Learn basics.

Instead of loosing money using random indicators like stochastics,rsi,macd,w%r,
use supply demand and trendlines.
Want a course?
go for MTI course.
We are not selling things here.
we only awaken the spirit for right things.
 

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