Originally posted by SantaClaus
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I can tell you that there are many events that occur on price charts which have a greater than 50% chance of occurring:
But the real edge is when you put some of these things together in confluence.
Unfortunately to really prove this, you will have to sit in front of a chart every day like I do. Think of it as the equivalent of putting in flying time to receive a Pilot's license.
- Bounces off pivot points
- Bounces off support/resistance
- Bounces of fibonacci retracements (the GBPUSD and euro$ like the 50%)
- Price reaching fibonacci extensions
- Price action patterns playing out, such as pinbars.
- Round number bounces
But the real edge is when you put some of these things together in confluence.
Unfortunately to really prove this, you will have to sit in front of a chart every day like I do. Think of it as the equivalent of putting in flying time to receive a Pilot's license.
Using chart patterns etc in day trading, don`t you find that a pattern or technique that works in one time doesn`t work in another? For example a certain pattern thatt produces profit more than 50% of the time may morph into a loser over time? Markets are efficient and there is software doing all sorts of analysis, if one does find a competive advantage it doesn`t last for long?
I`ve looked into all the charting stuff over time just out of interest and my conclusion was that it`s mystic meg stuff. I still refer to charts and a few technical indicators (basic ones) as a quick glance to indentify trends and for historical reasons.
edu-ma-kation
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