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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Richard Estes who wrote (9791)	3/6/1999 1:17:00 PM
From: bob wallace	Read Replies (1) \| Respond to of 12039

<I am a anti trendline and classic patterns man. > Well, Richard I have to rise to the challenge here. I think that you overlook one key element here, and that is that all trading systems have to be suitable to the trader - even you say that over and over again. Now I know that I am good at pattern recognition, I have been tested for it and proved it often enough in my work [back in the days when I had a day job] And I tried for two years to find some sense in stochastics, RSI, Macd etc etc. And I guess I see a MACD divergence as well as anyone, but I never did see anything in RSI/Stochastoc until it was way too late to do anything about. So who knows, maybe I was under educated, maybe I didn't look at the right things. Whatever. But I can tell you this, once I started concentrating on flags and pennants, I started making money. I can see pennants/flags and I can see the possibilities of their moves. Things that I never could see with RSI. Now, I will admit that I pick the patterns to trade using Crabel's NR7 and Connors historical volatility - so that should give you enough room to prove your point. But there has been at least one great pattern trader, and that is Victor Sperandeo. So I think that you should temper your anti pattern ramblings so as not to discourage the novice who can actually relate to chart patterns. Had I not been seduced by those fancy technical indicators so many years ago, I would have been a lot more profitable, sooner. Regards Bob And, if by any chance your recent rambling was induced by my latest posting on TC2000 thread, why don't you post your own scientific analysis, I'd like to see the difference in outcome

To: Richard Estes who wrote (9791)	3/6/1999 2:11:00 PM
From: CatLady	Read Replies (1) \| Respond to of 12039

You asked if anyone looked at cycle lines etc. Yes, I spent several hours drawing cycles and fans on charts w/ Metastock. All I came up with was the feeling that such cycles were every bit as subjective as flags, pennant and h&s patterns. That is, if I drew enough cycles, eventually one of them would fit. I have, on the other hand, found trendlines to be of considerable value in assessing short term trend reversals.

To: Richard Estes who wrote (9791)	3/6/1999 2:22:00 PM
From: bdog	Read Replies (1) \| Respond to of 12039

Great discussion going on here... Richard "Did anyone look at them?" Skeptic that I am, I put up the cardinal #, and read the little info I have on Gann, time permitting I also want to throw a few stocks prices in a cardinal cross spread sheet and see what happens. But I also threw in random lines, and 3,6,9,12,15 lines and whole # lines and sometimes it reminds me of using a random flasher light show with music... it appears that some of the lights are in sync with the music... same for cycle lines... being a tool guy, I am also skeptic of NOT tailoring an indicator for a given stock, time etc and tend to bend an ear to Lane as he points out to adjust the stochastic parameters. ie, count the bars between low,high,low cycles for several and average it out. then halve that number for the stoch parameter. I am fascinated by it all and wish I had more time to study/test it. I appreciate everybody's input on this thread as it gives a good starting point for one's own study. Have not given up on Gann but wish to study it further, especially when one as yourself uses it. The 3/21 8 day cycle was also an interesting one to put up, I threw up an 8,3,8 stoch and an 8,3 StochRSI also. True, patterns and trendlines are subjective, but I will always argue that TA is subjective. Once your system is in place...the objectivity can start. thanks for your ramblings bsubjectivedog