Quote: (06-25-2013 11:07 PM)Leo Wrote:
Quote: (06-23-2013 06:41 PM)gsinplaya Wrote:
Quote: (06-22-2013 10:27 PM)Leo Wrote:
Quote: (06-21-2013 09:17 PM)gsinplaya Wrote:
Quote: (06-21-2013 09:02 PM)Leo Wrote:
You obviously know your stuff. I'm still in the process of educating myself to be a good home-gamer and you lost me at 'outside reversal day' lol.
However, I'm still very, very skeptical of technicals being able to forecast market manipulation moves or irrational behavior. I will say that I don't daytrade so I don't see things as they unfold.
I think you can learn to navigate the markets with a technical plan. Most people don't take the time to do this.
If you equip yourself with a few technical strategies and common sense rules, you can potentially save yourself pain during pullbacks and take advantage of tremendous macro buying opportunities.
A bit of healthy skepticism is ok but at the end of the day price should dictate how you trade and not your opinion on any aspect of the market.
What technical strategies do you recommend? And any resources: books, websites? I don't mind looking into them and see if they hold water - if they give 'an edge'.
Until then, that edge would be what I mentioned above: trading via dark pool networks, market manipulation, or a Level III or IV screen.
Some Recommended reading here on technical analysis and chart patterns...
http://www.chartpattern.com/recommended_reading.htm
Check out this book regarding dark pools and market structure which will probably interest you more.
http://www.amazon.com/Dark-Pools-Machine...0307887170
Traders with small accounts shouldn’t be concerned with Dark pools—unlisted pools of bids and offers that trade off the exchanges—but if you have a strategy with enough complexity or you’re trading a large account in illiquid stocks then its worth looking into.
A lot of chart pattern stuff is hindsight, and we all know what hindsight is.
I'd like to play the market as the pattern is forming and know the psychology of the players involved eg: downward pressure on the price as it approaches a resistance.
Also, regarding supports and resistances - I've seen the price go thru a resistance then plummet down hard or thru a support then bounce and keep going. One would get screwed for coming in when it broke resistance or get taken out of the market if one had a stop loss below the support.
why do you say its hindsight? patterns are a predictor of future movement and trends..also supply and demand imbalances.
and yes sure with machine trading today you have markets which often overshoot ....or are prone to breakout/breakdown failures. This often occurs in markets that are in a correction or if in a trending market would occur after an exhaustion or retail gap to suck in late longs or shorts.
You can use this to your advantage if you know how to spot it.