Predict Market Direction vs React To Market, Which Strategy Do You Believe in to Work ?
- Fractal Wave For Forex Trading (and Stock Market Trading)
- Writing an effective advisor
- There certainly is a Holy Grail!
with a good risk management many strategies work!
If you choose "Both stratgy does not work" option, then it would be nice if you can tell us what strategy works in your case.
Probably, I guess it is something outside the entire technical analysis space.
But you never know what it is until you tell.
Predict the market is less strenuous, reacting to the market is too time dependent, not looking at the chart at the exact time could make you miss a trade you have been planning for weeks, all the work goes into the drain
You are correct about "reacting to the market is time dependent".
As science improves our daily life each day, the science improves the trading strategy too.
In fact, when you measure the turning point probability from the current price to the support or resistance, you can anticipate if the price could make the reversal or breakout at the support or resistance level.
In short, you can turn the support and resistanct (i.e. reacting to the market strategy) into the predict market direction strategy in this way. This approach is less time dependent as you can anticipate the price action even before the price reaches the support or resistance.
This does not mean that you have to adapt new approach. You can still remain as it is.
I just wrote this to spice up the discussion about the trading strategy.
- Predict Market Direction (Trade after you predict buy or sell market direction using the technical analysis.)
- React To Market (Trade if price is pushed to one direction as in support resistance or some sort of breakout trading. You never predict market direction but you react only. )
- Both stratgy does not work
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