The axioms of financial market analysis (or the whole truth about the right and wrong use of indicators) - page 4
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I could, but I'd have to write an article for that, and the answer would be too much for a simple forum post. And I don't feel like it.
Unfortunately I cannot agree with you!!!
Price is only a consequence, so to speak, price is a lagging indicator!!! The progenitors of the price are: the flow of orders (the tape) and the volume of transactions, and then all this is displayed on the chart in the form of price!!! You can study the behaviour of prices and this will of course give you a working trading system! But if you add volume to price, you will get an advantage over those who do not use it, if you can also analyze the tape (order flow), then you are the king of the market! ))))
You should leave it to Argo - he's a great article writer :-D
Thank you for the "flattering" review. As for the volume of sales or purchases, everyone here has forgotten "to sell something unnecessary you have to find a fool who will buy it". For this very reason I do not even want to consider them as they are presented in most terminals. And pay more attention to how a trend is formed (and why). Deevera???? And what is the turkey? Here is my version of an indicator written about five years ago to test the effectiveness of this theory
Red circles are formation points . The green ones are when they became support/resistance lines. And all this is the reverse divergence.
The second fig. is the first one in a larger scale and not to be unfounded it was taken at the moment of writing for USDJPY. As I hope everyone understood it, these are the latest ones. I'm too lazy to search for those that were before. But believe me they work just as effectively.
"To sell something you don't need, you have to find a fool who will buy it".
Totally missed it. It was a classic AO. And ordinary diversions should be divided into three categories false, market halts and reversals. If you watch closely, each category has clear signs. I analysed a number of classic indices. They have their own nuances, but the criteria are generally similar. Read the books, it's all there. But if you don't, you will soon. As for the repetitive market, it cannot stop repeating. All work on the same rules described in the primers (I wrote about it in my blog). Only it is necessary to correct for time. But no one wants to make it. It is time that introduces subjectivity in assessing the market situation. There is a real dependence of the trading period, in which the trend began to form (it is connected with the number of players). For this reason, if it appeared after the European closing we should not expect that it will be supported with the same enthusiasm by Asia or Oceania. But the European trend which appeared at the opening is very likely to continue in the U.S. And here we should be interested if the traders achieved their goal, not the timing.
Totally missed it. It was a classic AO. And ordinary diversions should be divided into three categories false, market halts and reversals. If you watch closely, each category has clear signs. I analysed a number of classic indices. They have their own nuances, but the criteria are generally similar. Read the books, it's all there. But if you don't, you will soon. As for the repetitive market, it cannot stop repeating. All work on the same rules described in the primers (I wrote about it in my blog). Only it is necessary to correct for time. But no one wants to make it. It is time that introduces subjectivity in assessing the market situation. There is a real dependence of the trading period, in which the trend began to form (it is connected with the number of players). For this reason, if it appeared after the European closing we should not expect that it will be supported with the same enthusiasm by Asia or Oceania. But the European trend which appeared at the opening is very likely to continue in the U.S. And what we should be interested in is whether or not the traders have reached their targets, not the timing.
the market has no false signals
Really!!!? Argue?
It all depends on what you mean by a false signal. They don't and can't be on a chart because everything is mathematical, but in a news feed they probably are, people tend to deceive and mislead other people.
He mentioned three categories of false, stop and pullback, in fact a false is a pullback. Indicators mostly use 1-2 values of a candle, and 6 values, and time is not of the essence, as he correctly mentioned. If you take into account all 6 values, the so-called false signal becomes a short-term buy or sell signal. But it is not false, rather it is short term.
It all depends on what you mean by a false signal. They don't and can't be on the chart because everything is based on mathematics, but in the news feed they probably are, people tend to deceive and mislead other people.
He mentioned three categories of false, stop and pullback, in fact a false is a pullback. Indicators mostly use 1-2 values of a candle, and 6 values, and time is not of the essence, as he correctly mentioned. If you take into account all 6 values, the so-called false signal becomes a short-term buy or sell signal. But it is not false, rather it is short term.