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Bill Eykyn wrote:
>
> It may be a 3-5 day ABC correction or ABCDE or an x day sideways market.
> One just does not know.
>
> Any other thoughts ?
> =================================
>
> It seems to me that the value of any indicator depends largely on the time
> frame in which you trade. If you are a position trader, with a good bank
> account and can withstand the drawdowns and the margin, there will be several
> indicators which could put you into a good trade - and take you out again.
>
> For me it is like the value of EW. We all know the market moves in waves, 5
> up, 3 down, etc, but exactly when the market is going to go from one aspect to
> another, is a wholly different question. I can think the market is ripe for
> the start of a 5th wave, but is it? What indicator in the world is going to
> tell me, in a timely, affordable manner? At what point in time do I commit
> funds to a trade, where do I place my stop when I am in it and, most
> importantly, when do I get out? What indicators are going to answer those
> questions?
>
> I am sure with a decent bank account and the ability to withstand sizeable
> drawdowns, margin calls, etc, it is very possible to get yourself onto a good
> trend - and make it your friend, until the end! But it takes large funds, of
> that I am certain.
>
> So, I can't do that. I have to make my living out of trading, day in, day
> out.
>
> What I have learnt, through hard and often bitter experience, sheer
> persistence and eventually finding out exactly what makes the pit tick -
> literally! - is this: it is price action, the tell-tale patterns and knowing
> where the support and resistance is going to come in, that counts. For me,
> that means being a day trader and, in order to make money consistently, I have
> to get to know one, extremely liquid market, very well. I have got to get to
> know its personality - just how it ticks. The rest is money management and
> good application of my knowledge and experience - none of which is easy.
>
> Of course there are indicators which can help in a general way - overbought,
> oversold, etc, However, in reality, don't all indicators lag?
There are some that are leading BUT then you are in the prediction game
and that has caused the ruination of many a trade. As you say in the end
you have to get back to the basic info on the chart , support and
resistance etc
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