Short Term Trading Weekend Lounge: 7 -9 Apr, page-112

Seems the STT has lost it's way a little bit at times lately in regards to respecting some peoples opinions/thoughts and the sharing of ideas around certain aspects of trading. Not sure if it's to bolster one's own ego or whether some peoples choice of words are letting them down - written text doesn't always interpret very well.

A fair bit of talk around about TA and indicators etc. The beauty (and down fall) of TA is that it is and can be open to interpretation.... hence why it needs to be constantly analysed and adjusted to suit a constantly evolving market. Indicators are a mathematical analysis method used to analyse past and help predict future trends (yeah no shit noddy). They are not the be-all and end-all but they are a major cog in the wheel of the modern day trader.
We as people recognise patterns and trends, indicators have been well known to assist in identifying these patterns/trends shifts. To deny their success and place would be to deny the success of many traders and those that invented TA indicators. Some pretty successful chaps behind them. If an indicator helps to add even only 5% success to a trade, once other analysis methods have been used and interpreted - then I for one will be open to using said indicator. I am comfortable admitting that I need all the help I can get to try survive in the market, I'm a very small fish in a big pond (and I suspect most all of us here are).
However, Indicators are only useful in the context they are applied to and that context can be interpreted differently by each-and-every one of us, therefore, some will work for some and not for others. We all have the option to choose what works for our own particular trading style.... it's not a one size fits all scenario - if it was that easy, we would all be sitting on Martis' yaght and none of us would be here discussing these things.

A few common indicators I like to pay attention to:

RSI/ATR/DMI(ADX)- all written by J. Welles Wilder in 1978. Safe to Wilder would be considered pretty successful and highly respected by traders the world over.

MACD - Written by Gerald Appel. One of the most popular time-series calculations going around. Still hold it's own imo

SMA - Many traders use these. Helpful in identifying when the 'sheep' or herd mentality may start piling in.

Stochastic Oscillator - written by Dr George Lane. Support/resistance levels

Fact is, many people use indicators, so to a degree - many will be self fulfilling at some point. Like candles/volume, they all play a part in creating a picture that may or may not be the same as the next persons.

I think we need to appreciate and respect that we are not all the same in this regard. Some have hard and fast TA rules, others have a hybrid TA style by where there are no set rules on any one particular theorem. If we discourage people here from adding their views, then we lose an edge in the market imo

None of the above means I am right, TA is a slow and constant evolving learning journey - one I haven't, nor probably ever will master. Now, back to my beer.... I've had a few too many for this sort of post .

There's a pretty bent motivation to this song...