The axioms of financial market analysis (or the whole truth about the right and wrong use of indicators) - page 21
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Do you have any idea what scale is?
I don't use mcd's or stochastics.
This is the first time you've seen my turkey, you don't know what principles it's built on, but you're judging what it's "screaming" about... expert, my ass...
Oleg. I took apart your indicators by the bones - there macdac is one and the same.
Artyom, the indicator shown in the picture you couldn't make out as you don't have one.
zy
And in the ones you have, with MAKD you are wrong.
Axioms of stock markets by Charles Dow:
1. Price takes everything into account. Dow has derived his own theory, according to which any factor that can affect supply or demand in the market in one way or another is bound to be reflected in the price movements of an index. Moreover, this can be said about anything. Including in case of any natural disasters. All of this is sure to be reflected in the price movements of the dependent trading instrument. Surely everyone who uses technical analysis in their trading will know how important this postulate is.
2. Three types of trends prevail on the financial markets. By the way, if we do a little "digging" into history, we will see that it was Charles Dow who discovered the fact that the chart is moving in a trend. If the market is in a rising trend, it will be displayed in the form of consecutive highs. And if the market is in a downtrend, in this case each successive fall will be lower than the previous one. Sometimes, however, the market may be in flat condition. This is called a sideways market movement. In such cases, all next peaks will be at approximately the same level as the previous ones.
Besides, Dow has defined that there are three types of trends: primary, secondary, and minor. Of course the primary trend was considered most important. According to Dow it lasts more than a year. The second tendency has a correction purpose, if to look at it through the prism of the primary one. This trend lasts about 3 months. "Pullbacks" similar to these are about one to two-thirds of the distance the price has travelled while the main trend was developing. All small trends that last about a month should be considered short term and should be analysed as a component of a larger trend.
3. A major trend consists of three phases. The first phase is the accumulation phase. It is the time when the most enterprising investors become active. They begin to open long positions. At this time all adverse economic information will be taken into account by the market. Then the second phase follows. Now all those who use technical moments of following the market are involved in trading. Gradually all the information which is taken into account by the market becomes more optimistic and the last phase begins.
At this time all traders are activated. It is at this time the market can see the excitement. Especially when the various media outlets throw up the news. In addition, when the public starts to talk very pessimistically, it can only mean one thing - most likely the trend has gone down.
4. the indices should confirm each other. Dow also invented two indices in his day. The first was an industrial one. The second was the railroad index. According to Dow, whatever the signal, if it is important, it must necessarily pass in the values of these two indices. True, that was then and things have changed somewhat today. But not by much. In the current environment this means that the readings of any indicator must be confirmed by the readings of the other indicator.
5. The trading volume should give the confirmation of the trend character. Here we should consider that if the trading volume increases, it should be at the moments, when the price moves in the direction of the main trend. And if the trading volume decreases, it should be at the moments when the price rolls back.
6. Any trend will be in effect until there are clear signals that it has changed. I think any trader today would agree with Dow on this statement.
Axioms of stock markets by Charles Dow:
....
point 1 - the man is 100 per cent right
After the 3rd point, something is missing, i.e. how to identify the main or non-main trend. I.e. there is no definition of a trend which is not the main one or something else.
Jesse Livermore's axioms:
1. trade on the trend - buy on a bull market and sell on a bear market.
2. Do not enter the market when there are no clear trading opportunities.
3. Trade using major turning points.
4. Wait for confirmation of your assumption before entering the market.
5. Enter the market as soon as major turning points are in play.
6. Allow profits to grow. Close trades that show losses (good trades usually show profits immediately).
7. Trade with stop orders determined before you enter the market.
8. Exit trades if the prospect of further profits becomes uncertain (the trend has ended or weakened).
9. Trade the leading instruments in each market - trade the strongest stocks in a bull market and the weakest stocks in a bear market.
10. Let price determine your actions.
11. Don't average out losing positions.
12. Don't wait for a broker to force you to close positions (margin call), close unprofitable trades in a timely manner and on your own.
P.S.:JesseLivermore - a stock speculator of the early XX century. Famous for having managed to make and then lose millions of dollars several times. However, he could not withstand the fourth fall, which turned out to be fatal for him. ))))
Jesse Livermore's axioms:
1. trade on the trend - buy on a bull market and sell on a bear market.
2. Do not enter the market when there are no clear trading opportunities.
3. Trade using major turning points.
4. Wait for confirmation of your assumption before entering the market.
5. Enter the market as soon as the major turning points are in play.
6. Allow profits to grow. Close trades that show losses (good trades usually show profits immediately).
7. Trade with stop orders determined before you enter the market.
8. Exit trades if the prospect of further profits becomes uncertain (the trend has ended or weakened).
9. Trade the leading instruments in each market - trade the strongest stocks in a bull market and the weakest stocks in a bear market.
10. Let price determine your actions.
11. Don't average out losing positions.
12. Don't wait for a broker to force you to close positions (margin call), close unprofitable trades in a timely manner and on your own.
P.S.:JesseLivermore - a stock speculator of the early XX century. Famous for having managed to make and then lose millions of dollars several times. However, he could not withstand the fourth fall, which turned out to be fatal for him. ))))
So, did following these rules lead him four times to the total loss of his fortune?
So following these rules is what caused him to lose his fortune four times over?
What does loss of fortune have to do with it?
What are you talking about? Maybe he broke the rules or got burned on insider information, how am I supposed to know why?
Losing his fortune was his own fault. I don't know why. It doesn't matter!
What does unconsciousness have to do with it?
What are you talking about?
I'm saying that you should read carefully before answering.
However, I sometimes read diagonally myself.
So adhering to these rules is what caused him to lose his fortune four times over?
Apparently he didn't follow them himself.