Technical Analysis

it's not crosses you dumbfuck, actually learn to read.

Fucking hell, you're speaking about slow-fast ema crossing, nigger.

>literally just put a EMA(5) and EMA(20) on any given intraday chart and buy/short at the EMA(20) whenever price gets there and the EMA(5) is above or below it. see how well you'd do.

So on intraday chart, when EMA20 == current price && EMA5 is above EMA20, BUY. Do the opposite if EMA20 == current price && EMA5 is below EMA20. Did I get that right?

Will try it assuming that's correct, thanks user.

Technical analysis is bullshit. It's illusion intended to make the suckers who buy into it think they're really smart, or make people outside of the world of trading equities think that the people who do it are gurus and that this business is for super geniuses.
It's all a scam.

Patterns, Fibonacci, trendlines, moving averages, Gartley's, harmonics, oscillators, fractals, macd, parabolics, stochastics, barts, bears, bulls, and bollinger bands, and any other kind of stupid, useless data that you think is going to help you see into the future. It's ALL worthless.

The only thing worth a shit across all forms of equity trading is price. Buying low and selling high. And more importantly than anything else, accepting the fact that you don't know. Living with uncertainty, but having the discipline accept losses and get out of trades when they go against you. Also the discipline to take profits instead of hoping it goes on forever for fear of missing out.

>literally just put a EMA(5) and EMA(20) on any given intraday chart and buy/short at the EMA(20) whenever price gets there and the EMA(5) is above or below it. see how well you'd do.
>and buy/short at the EMA(20) whenever price gets there and the EMA(5) is above or below it. see how well you'd do.
>and buy/short at the EMA(20) whenever price gets there
>and buy/short at the EMA(20) whenever price gets there
>and buy/short at the EMA(20) whenever price gets there
>and buy/short at the EMA(20) whenever price gets there

this thread is a golden example of why no one helps or gives good advice around here, even at the most basic level like i attempted to do. enjoy it now because im not doing it ever again and this is why no one else does either, just so you guys know.

Price has to cross and close over ema20, not to be equal.

How to spot a programmer 101

basically. it gets more complicated than that, as in you can improve on that to filter out bad signals even more, but that at least gives you a foundation to work with. i highly recommend checking out No Nonsense Forex and LiveTraders, just watch all of their youtube videos (either the playlists or just start with the most popular and work your way down, or watch ones on specific topics you're interested in).

>shares a fucking 101 strategy
>believes he shared literally GOLD
Sorry nig, it was a good advice, but it's not the revealed truth, do you understand that?

Thanks, will check that out and give it a shot.

>Watches no-nonsense
>Still uses ema5
See? you're a Nigger

because of group psychology TA is merely a spoke of FA which cannot be wholly ignored

oh, and test it out. what i was saying with "see how you'd do" i meant actually look at some days that are already in the past and see how often it works and how often it doesn't, the larger the sample size the better. if you can program then you can use a computer to crunch large amounts of historical data for you in the charting software of your choice, it's not even particularly advanced stuff like using strategies in think or swim.

like with buddhism: don't take my word for it. actually test it out yourself. see if you can improve upon it, see what kind of patterns keep showing up that you might be able to capitalize on, etc. it gets deeper from here.

>shares golden 101 advice to an obvious noob OP
>gets memed on by random anons in return
>doesn't really feel like going any further if that's how they treat people just giving out the first steps

why the fuck should i teach you ungrateful little shits anything deeper if you can't even be respectful of the most basic shit? you aren't paying me, this is charity. it's like i just gave you, a homeless man, a sandwich, and you in turn cussed me out and spit on my shoes while throwing the sandwich on the ground because you don't like turkey.

fuck off, im not going to waste my time giving out sandwiches anymore. you can starve. do you understand that?

fun fact: you don't have to copy-paste purely what someone else does, you can take what works for you and discard what doesn't. i talked about intraday trading and NNFX only trades on the daily time frame, i trade stocks while he trades forex.

it's almost like there are multiple ways people can make money by trading, and they're all viable edges, wow what a thought. it's almost like someone can buy and hold for 10 years and someone can scalp hundreds of trades a day on the 1m charts and both can be successfully profitable, truly boggles the mind im sure.

>learned on free youtube channels
>comes here sharing a 101 trick you can find literally any fucking where
>muh you're not paying me! this is charity!
Seriously user? C'mon don't be so a fag and joke with us.

In my experience, learning is fine, backtesting is hard and forward testing is very important.
Discipline, risk management and learning to lose is the very hard part, at least for me.

How did u get started user? I'm trying to find good mathematical resources but all of these "trading" courses are just a bunch of retards who don't know the math behind the ema, RSI, etc. They just say buy here sell here

Ah I see ty

The only technical analysis that matters I don't think even qualifies as traditional technical analysis, but it's sure as Hell not fundamental analysis either. Indicators and all of that are horse shits. Total dry holes and dead ends that will waste enormous amounts of your time. I'm not elaborating on what actually works in detail because fuck you "people" and quite frankly fuck the whole congregation of bullshit artists and snake oil salesmen that are the "trading community."

>FA is shit
>TA is shit
>Indicators are shit
Painting penises with paint then?

It's modern divination. Bullshit pattern recognition that does not actually prove useful for predicting anything.

Backtesting isn't hard. You can write scripts on sites like trading view and they'll do it automatically for you.

It's not black and white. The point of TA isn't to predict. It's to improve your odds.

Damn look at that chart, just bought 100k

It gives people the confidence to take risks and something to blame if they don't turn out how they wanted. It's purely a tool of cope.

I'm retarded and can't code, so i was doing it by using "replay" on tradingview and simulating trading.

Is it hard to write scripts on tradingview?

any nigger who is too stupid to understand probability and statistics (95%+ of the population) is not worth bothering to convince in the utility of technical analysis. its the same shit as anyone who thinks a pro poker player is just lucky and not skillled. naturally, this board is filled with many said dumb niggers whose only experience in crypto is buying a suicide stack of what pajeet tells them 100x EOY, based on literally nothing.

>hurr durr the TA strat doesn't work every time
>hurr durr you sometimes lose the poker hand despite having a strong hand

the charlatanism in TA revolves almost completely around trying to convince idiots that some strategy always works. also hindsight screenshots and image editing/inspect element can easily fake people into thinking you are a mastermind. that said, there is a provable record of skilled traders who run up small accounts into huge accounts, as well as bots that execute thousands of trades profitably that must be informed by some technical strategy for them to be profitable in the first place. the existence of profitable bots is proof in itself that TA works.

the most important thing to remember is just that the "game" is always changing, and you have to be aware enough to know when certain strategies winrate no longer is what it used to be. in a bull market, momentum reversal indicators such as RSI tend to turn into complete shit, but then works extremely well when price is crabbing sideways forever. the same applies in reverse for other indicators. knowing when to use certain strategies based on their strengths and weaknesses, combined with a sufficiently honest assessment of the likelyhood of your trade idea working, makes trading relatively straight forward. simply determine your entry, your target, and your point of invalidation, calculate its risk:reward ratio, and choose a position size equivalent to your total account's risk per trade limit you decide for yourself.

looks like we got a bunch of 4 figure account experts in here. nice work bros

Attached: 538a4072493e0.png (512x512, 258.74K)

This a good advice user.

good post. at the end of the day it really is simply a numbers game of probability and statistics. you don't have to be right, you just have to be profitable. if you simply have a 1:2 risk:reward you can literally be wrong 2/3rds of the time and still break even, you get 35% or better and you 're actually profitable despite losing 65% of the time. most people can't wrap their heads around that and also can't emotionally handle losing money, ever.

when you raw the boat you are siting with your back to the front future, but by looking at the chart of the past you understand where you moving . Down you buy and up you sell.

to add, the fact that so many other people use TA is exactly why it works. people try to dismiss TA as a "self fulfilling prophecy", as if that is a bad thing. its precisely because so many people draw memelines that your memelines can work too, if done properly. of course, all the whales know these too and will often use TA against the retail trader. if you have traded long enough, you will quickly learn what these traps look like and use them as entry signals to ride the wave that the whales have set up themselves at the expense of everyone else.

for example, everyone's stop losses will be below a key swing low, expecting a break of it to result in a huge downswing much lower. whale wants to go long, but there is not enough liquidity for him to enter without tons of slippage, so he drives price down and breaks the low on purpose. retail traders stop losses all trigger big sells right into his buy orders, and then price immediately reverses. a "swing failure", as its commonly called. of course, swing failures themselves can be faked out, and fakeouts of fakeouts can be faked out. but watching price day after day you come to learn the approximate likelihood of shit working and you wont care if you get tricked sometimes if you are winning huge every other time that doesn't happen.

Yes, this is why i usually don't know how to place SL, too narrow seems always to be hit by whales tricks

I'm a newfag that appreciates the the trading 101 stuff. I looked at the /smg/ OP, but I guess they don't get enough people asking stuff about it to be annoying. Or maybe my google-fu is just retarded.

honestly its hard as fuck to generalize where stop losses should be placed. no matter where you place them, your mind will always trick you into thinking bog himself is hunting them down just to fuck with you before making price sharply reverse afterward.

a general rule of thumb to any novice trader: wherever your first instinct is to put your stop, just make that your entry instead. that way you can make your stop in a place more likely to actually be an invalidation area. its never going to be perfect though, and stop placement depends widely on your style and what level of active management you have with your trades.

a good general rule of thumb as well: buy red candles in an uptrend, short green candles in a downtrend. it has the added benefit of giving you profitability even in a flat market, where you'll often be going red-green-red-green-red-green. then all you need is your bias to decide whether you go for one or the other when it's ranging.

Yes, i use some atr measurements to place it, but i would like to backtest different settings to find what fits better.
Your own mind tricks are the hardest part to manage, so discipline is needed.

2x the ATR is good. if price moves over, basically, 2 candles away against you, it's probably a reversal. sell half of your position at 2x the ATR in profit, move stop loss up to break even, use an exit indicator to decide when you should get out. use at least 2 moving averages of different lengths and at least 1 indicator that is weighted by volume. momentum indicators, often as histograms, are useful to determining the strength of a move and whether you're ranging or trending. learn what a squeeze is with the TTM_Squeeze.

>No Nonsense Forex

Do not listen to this dumb faggot. No Nonsense Forex is absolutely retarded. You'd literally make more money with random entry than following his moving average, take 4 giant trades a year and hope one of those four makes up for the three shit ones system. He has no understanding of banks or forex and he literally thinks the fucking banks are sitting there on computers watching his individual trades and then stopping him out. He doesn't even understand what leverage is and tells people not to use it.
The guy is a turbosperg with a huge following of broke orbiters that will defend him down to their last dollar.

Thank you user, you seem to know what you're talking about, and what you said about momentum is very interesting.
What do you mean with squeeze?

>What do you mean with squeeze?
youtube.com/watch?v=5QtCZbnwfoE

You can hate the guy, but he actually gives a method, while others give a lot of bullshit without a general picture, you can customize what he says.
I find he's good.

in technical terms though, specifically, a squeeze is defined as when the bolinger bands (standard deviations of volatility) are trading inside of the keltner channel (ATR-based volatility), and indicates a period of very low volatility where you will often see price completely stagnate and flatline. a squeeze play is basically trading the breakout of that tight range that forms, usually going along with the prevailing trend defined by moving averages.

also you can try everything he says for free in a paper trading/demo account. he straight-up tells you to test things yourself, *extensively*. be really rigorous in your testing is essential. if you actually do that with your system then the results should show themselves in real time. if it doesn't work you can find out without any risk.

>you have scaling out as a ratio compared to your risk which is determined with the ATR or basically how big of a range the candlesticks are trading on average.
"you have scaling out as a ratio compared to your risk which is determined with the ATR or basically how big of a range the candlesticks are trading on average."

Can you explain that part? What do you mean by scaling out as a ratio compared to risk, like scaling out close orders? I'm confused

Thank you for that, i will definitely look at it, i still need to recognize clearly the ranging periods.
Not still clear about low volatility periods, i had some great trades in some of these periods, even if people seems to hate them, maybe because they were intraday traders.

A basic example of scaling out is to open 2 half trades, one with TP at the atr, and the other without TP.
If trade goes well, when one hits the TP, you set the SL of the other at break even.

I'm telling you straight as someone that used to be part of the No Nonsense Forex cult from its inception. The guy is a nutter and his trade plan, if you can even call it that, is worthless.
Moving averages don't work because the market is ranging 80% of time. They look pretty when everything goes perfect in one long trend, but more often than not, the market is moving sideways and you'll see multiple crossover trades that will end up losing big. You'll also see winning crossover trades that hit your stop losses before you can take profits. Not to mention, the actual logistics of getting in a trade the moment a stupid crossover, which means you're forced to use the daily chart only, which means waiting for-fucking-ever to get a good entry and exit.
Following this system will either lose you money eventually, or make such a small amount of money by playing it so safe over such a long time that it becomes a waste of time.

Moving averages follow the price. It literally tells you nothing that looking at price doesnt already tell you, and I took it off my charts a long time ago because they are fucking worthless.

also good for how to play squeezes: youtube.com/watch?v=V5ecnIcdtd8

you can make plenty of money by just doing that.

Technical analysis is an expression of the autistic pattern recognition gene that successful day traders have. If you don’t have the gene it looks like magic and can’t use it.

this is the real use of indicators imo. they get you to notice patterns that are actually visible the candlesticks themselves that you weren't necessarily paying attention to before. when I first learned how to trade, I would cycle through dozens of indicators trying to find shit that worked. something simple like an RSI divergence or an incoming squeeze are so painfully obvious to see happening in real time without indicators to tell you.

ive been trading off and on for a couple years and i dont even use any indicators actively anymore. sometimes ill check what the weekly 200 ma is or maybe ill check how far outside of a bolli band we are, but 9/10 times when i check on some indicator, its telling me something i already intuited based on naked price action alone. those who seek to find the magic indicator(s) rather than try to understand price itself will always be at a disadvantage (and will be more easily exploited)

visible in the candlesticks*

study moving averages. whether they are positively or negatively sloped, where price is in relation to them, where they are in relation to other MA's with different periods, and what angle they are (+90 to -90 on the Y-axis) are all relevant and mean different things when analyzing a chart. you will start to see the patterns emerge only after you have looked at a shit ton of different charts for a ton of hours like i have.

I get you, and i'm not saying that he's right, he's more right than others tough, and i guess it's a good start, then you can improve with time and patience.
You can't tell that his techniques were completely useless, maybe later you found just something that fits better with your attitude
I watch his videos but i don't take everything he says as "the truth", right now i guess it's a better truth than mine in a lot of fields, expecially money management.

I was using trendscore + ergodic oscillator, i guess i had an insight on what those squeezes were, but you just added a piece to the puzzle

Yes, looking at the angles of the MAs is a very interesting part, i noticed that they have a tremendous influence, but i'm not enough methodical, so right now i've just a clue of them.

Bad for spotting macro trends, looks like witchcraft to me.

it's not that complicated, really, a lot of it is common sense. how sharply the average price is rising or falling determines how strong the trend is, eventually becoming a spike at extreme areas of volatility. a flat average indicates a range or a sideways market. you can have a flat short term trend in a long term uptrend with a positive bias, for example. you might say something like any angle between +/-10 degrees is considered to be flat, with the +/- of the value dictating the bias.