Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

newtrader

Divergences: Indicators?

Recommended Posts

I frequently hear people talk about the importance of reading price action or reading tape. But I never see any specifics about how to learn this method. Any suggestions other than "time and experience"?

Share this post


Link to post
Share on other sites
I frequently hear people talk about the importance of reading price action or reading tape. But I never see any specifics about how to learn this method. Any suggestions other than "time and experience"?

 

Start with Wyckoff's Day Trader's Bible, attached as a pdf below. Then,

 

Techniques of Tape Reading

 

Tape Reading and Market Tactics

DTB, 1919.pdf

Share this post


Link to post
Share on other sites
I frequently hear people talk about the importance of reading price action or reading tape. But I never see any specifics about how to learn this method. Any suggestions other than "time and experience"?

 

Wow old thread having said that an interesting one. To me reading PA and the tape are kind of different things, though related. To me PA is about how price moves. Higher highs/lows, ledges, ranges etc. I think in the past I have posted a whole bunch of references. But a couple of quick (free) ones of the top of my head...check out Joe Ross' law of charts and The first couple of Fibonacci trader journal entries about Gann swing chartist. 'Buffy' did an article for Ensign Software too.

 

Theres a whole bunch of stuff by market 'old timers' (like Dunnigan for example) that are of value and 'grandfathered' this stuff.

 

If you want to learn about the 'tape' (which rolls volume into the mix) then as DB says Whycoff is the guy to start with. To be honest I would start with 'plain' PA as its somewhat more straightforward.

 

Cheers

Share this post


Link to post
Share on other sites

Question, I've read on this thread that everything can bee seen in price. If divergence by definition is price moving one way while an indicator is moving the opposite direction, how can divergence be seen in price alone? Doesn't the concept of divergence require a second data point or source? Also, isn't a divergence just a heads up as to what may happen and not and indication of what will happen? And, aren't there indicators that have a volume component (Klinger volume) to them so that if there is a divergence part of that divergence is based on volume. I see many posts on TL that discuss price/volume divergences. Is that not part of VSA?

 

I just finished reading Trading in the Zone and from what I read and from my experience of being good a losing, it's more about what is between the ears then the method. If we have hour "minds right" then the rest will work itself out as long as the method over a reasonable number of trades provides a high enough percentage of winners to make one profitable. That doesn't mean 80-90% because money management plays a roll too. It seems to me, unless I am completely wrong that the order of importance is 1. mind right, 2. money management and 3. method. Please let me know if I'm full of it.

 

David

Share this post


Link to post
Share on other sites
It seems to me, unless I am completely wrong that the order of importance is 1. mind right, 2. money management and 3. method. Please let me know if I'm full of it.

 

David

 

David - IMO, the game that goes on between your ears is the toughest game of all in the markets. How many times have you 'gotten you too early' or 'got out too late' or 'missed a trade b/c I didn't like it', etc. etc.

 

That's all mind games.

 

And the hardest part of all in trading IMO. I think you nailed it on the head. Yes, how you trade is important, but it means nothing if your mind is not in the game and ready.

 

This 'game' we play requires an immense amount of focus and determination. This 'game' we participate in will punish you severely for lack of focus or mindset. This 'game' does not allow you to casually take a day off and be ok the next day.

Share this post


Link to post
Share on other sites

[...] You can safely assume as fact that some people trade better with indicators and some trade better with watching pure price action, while yet others trade better with a smattering of both. Opinions one way or the other don't change that one iota so don't ever accept other trader's "opinions" to the contrary. Opinions are pretty much like derrieres (your posterior heh, heh) and pretty much everybody has one.

 

Some traders may think they have "graduated" beyond the need for indicators and that is fine as there is plenty of room in the markets for all types. There is no such thing as a pure best method of trading no matter how much some may wish to protest to the contrary. [...]

 

Yes, I agree

 

Some trade with indicators and win

Some trade without indicators and win

Some trade with indicators and lose

Some trade without indicators and lose

 

I don't see the problem at all.

 

I rather think that traders criticising indicators, can't make a good use of them - hey don't experiment with different settngs and have no patience in finding their true help.

I visited seminar yesterday that explained elliot wave and some another obscure oscillator giving 100% winning trades at all times.

 

(????)

Share this post


Link to post
Share on other sites
...

 

I rather think that traders criticising indicators, can't make a good use of them - hey don't experiment with different settngs and have no patience in finding their true help.

I visited seminar yesterday that explained elliot wave and some another obscure oscillator giving 100% winning trades at all times.

 

(????)

 

if someone can give 100% winning trades at all times,

he won't be giving seminars.

and if you have learned anything from the seminar, you won't be a lonely forum rat.

Share this post


Link to post
Share on other sites
if someone can give 100% winning trades at all times,

he won't be giving seminars.

and if you have learned anything from the seminar, you won't be a lonely forum rat.

 

Won't be? Why not?

 

Is this forum accepting only 50% methods as true and any better than that as fake?

Share this post


Link to post
Share on other sites
Won't be? Why not?

 

Is this forum accepting only 50% methods as true and any better than that as fake?

 

no

 

because we are learned, and you are not.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Depressions aren't real either... ??
    • Dear B4 #42, I heard you can't get out of bed and decided you were going celibate and shaved your head and “reconsidered” having children.  If it took Trump getting elected to get you to stop fkn every Dum, Harry, and Dick you meet, we’ll take it.  thx Sincerely just sayin’ zdo PS To all the other girls I loved B4 - https://www.youtube.com/watch?v=rVq0ONrSH-Q 😚
    • MDB MongoDB stock watch for a range breakout at https://stockconsultant.com/?MDB
    • Date: 12th November 2024. Market Buzz: Trump Trade Impact! “Trump trade” has boosted the US Dollar and US stocks, but Trump’s policies may have less favorable effects on global assets. Trump’s plan to raise tariffs is expected to negatively impact economies worldwide, especially exporters like China. Asia & European Sessions:   Bitcoin Surge! Bitcoin broke $90K, driven by Trump trade once again. Bitcoin is up roughly 110% in 2024, helped by robust demand for dedicated US ETFs, interest rate cuts by the Federal Reserve and Trump’s cryptofriendly agenda. Crypto market capitalization has exceeded its pandemic-era peak, reaching $3.1 trillion. Traders are betting on Bitcoin reaching $100,000 by year-end, according to data from the Deribit exchange. Open interest — or outstanding contracts — for CME Group Inc. futures for Bitcoin and second-ranked Ether (ETHUSD) scaled records on Monday, a sign of growing engagement by US institutional investors. Asian shares dropped, alongside European and US equity futures, as traders evaluated the implications of President-elect Donald Trump’s policy agenda and potential cabinet choices. The MSCI Asia Pacific Index fell for a third consecutive day, driven by rising Treasury yields amid concerns that Trump’s proposed tax cuts could increase inflation. There are also reports that Trump is considering two individuals for prominent roles in his administration with track records of criticizing China. DAX and FTSE100 are down -1.1% and -0.5% respectively, after a pickup in German HICP inflation and higher than expected UK wage growth dampened easing expectations. Investors await the US CPI report for insights into the Fed’s easing path, as Trump’s inflationary policies may lead to fewer rate cuts. Financial Markets Performance:   The USDIndex continues to rise and is currently at 105.75. It hit a 1-year high. EURUSD drifts to 1.0620 and GBPUSD is in a sell off, currently at 1.2800. Oil prices fell after their biggest 2-week decline, amid a weak demand outlook from China, a stronger US Dollar, and concerns over a potential oversupply. Crude oil has traded within a narrow range since mid-last month, influenced by Middle East tensions, the US election, and OPEC+ output decisions. Gold remains under pressure and is currently at just $2604.36 per ounce. It hit a one-month low, down 5% since Trump’s election victory, as a strong dollar and US equity rotation pressured the metal. Gold’s decline was also technical, breaking below the 50-day moving average, causing funds to cover long positions. Despite recent drops, gold remains up 25% for the year, supported by central bank purchases and geopolitical risks. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.