mdss68;289393 wrote:Wave Action;289351 wrote:Here is the basic set up I'm going to use with 3 lower indicators and a 10 day moving average (MA). All is set in the daily timeframe. Please don't ridicule it as it's my choice and yes there's a million other ways to do this. Firstly Stochastic and Williams are overbought , where 80 is overbought and 20 is oversold . First alert is triggered. The 10 day moving average ( MA) is there as the guide and stop . Price is above so we hold. I can't realistically call from here for the thread purposes but if I was to call sell that would set the ball rolling. Basically short term the market is overbought but continuing higher that's why I'm using the 10 MA in orange. Things could change overnight so we see ? FED meeting Wednesday.
Just to mention I'm linking Bigcharts here as it very conveniently retains settings as I post. There isn't that many chart packages do that.
https://bigcharts.market...ggle=false&state=11
https://bigcharts.market...ggle=false&state=11
https://bigcharts.market...oggle=false&state=11 I'm not a religious man, but you know that parable about seeds and stony ground? Welcome to Citywire :)
fwiw Tradingview offers a "share link to chart" thing and mine have always appeared as I meant them to.
Many years ago I read Steve Nisson's book on Japanese Candles, it hit home. Partly the lovely descriptive names (most I've long forgotten), and the notion that this really was a war, not a picnic. For these unfamiliar, this system goes way back to the Shogun era, and was devised to better trade the rice market. I read all the western TA stuff, but my charts remain a relatively simple affair, RSI, candles, MA's. Those seeking Heads and Shoulders and all the other patterns, all the best :-)
ATB!
The problem – and this was true even back in the 80s – is that the
obvious points where traders set stops, limit orders, etc. are what bigger, smarter traders will deliberately hit, either so they can buy your assets at discounts, or have you buy theirs at premiums.
In the retail space, people seem to think markets are a system that follows rules.. when of course trading's a game that involves beating the guy on the other end of your trades – and central to that is knowing what they're doing.
Similar to the theory for why smart beta products tend to do well in backtests, but often pretty terribly in execution: as soon as something's published, that system is a known entity.. And a) every trader who knows what you'll be buying or selling next can front-run you, and b) every investor using products that
follow smart-beta algorithms is closing the gap between where you trade and expected profits.. So the one thing you don't want to do is what everyone else is doing. It's why monkeys outperform fund managers.