Technical Analysis: The Correct Settings for ANY Chart

Posted on Nov 3 2015 - 1:23pm by Dan

When someone first begins to explore the journey of becoming a trader, it is almost guaranteed they will be exposed to “Technical Analysis” within the first 10 minutes.

At which point, the obsession¬†with the ‘correct entrance’ due to a technical tool begins.

Well … that’s a bit of a psychological trap.

Allow me to let you in on a little secret when it comes to “technical tools” …

They all work.

And none of them work …

1 Comment so far. Feel free to join this conversation.

  1. NewLife November 3, 2015 at 2:37 pm - Reply

    From what I can tell in my limited experience, you have 2 main options for methodologies.

    One is to find highly specific tools which work for a very limited amount of time, and you change them as their efficacy decreases. I’ve read from some quant traders that they expect to use a particular method for between 6 months to a year, and then move on. Not sure of that is standard, but it’s been said.

    The other is to apply robust methods, which work across a wide variety of markets, but that also have periods of drawdown as markets are moving in ways which don’t suit the method. This is most commonly talked about in trend trading circles.

    Either way, you’re going to adjust, wait or panic. In the long run, knowing that nothing works all the time is something we all have to accept in order not to panic.

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