by Karma on February 10, 2011
The masses love forecasts. And that’s exactly where guru analysts fill in.
To talk about state-of-the-market requires research skills and geeky stuff; to give a forecast all you need is oratory skills.
To talk about state-of-the-market requires humbleness to quote factual data; by forecasting you stand a chance to become a news sensation.
Here are same famous forecasts:
“Everything that can be invented has been invented.”
Charles H. Duell, Director of U.S. Patent Office, 1899
“Who the hell wants to hear actors talk?“
Harry Warner, Warner Bros. Pictures, c. 1927
“Sensible and responsible women do not want to vote.”
Grover Cleveland, 1905 [click to continue…]
by Karma on November 11, 2010
Click To Enlarge
While there are innumerable software around to automate Technical Analysis and trading strategy… the chances are you won’t be able to find a ready-made code for the most basic concept in Technical Analysis: Support & Resistance.
Most codes around use zig-zag style function which has several flaws in it’s mathematical properties.
A proper code, which implements atleast basic Technical Analysis should have these five parts:
- Identification of all significant highs/lows
- Marking a price band around each significant hi/lo
- Marking a price band for important Fibonacci retracements
- Finding confluence of the bands marked in step 3 & 4
- Ranking each confluence level as L1, L2, L3,L4 etc. (resistance turns into support and vice-versa)
There are several nuances involved in each step.
The observation during this exercise that Support & Resistance levels actually exists provides the trader a premise about price behavior; this can than be developed as an edge.
Comments welcome.
by Karma on September 30, 2010
Well, let’s break this into two parts- 1. Meaning of Trading For a Living and, 2. A common sense guide to achieve this goal. No technical, high-tech, scientific or scholarly discussion; just something which a beginner/layman shall be able to grasp.
A google search on same pukes up more than 28 million results… so is trading for a living so straightforward to be widely pursued?
Meaning of Trading for a Living
Literally this implies earning enough money from trading in the markets to substitute a regular 9-5 job or business. Hence Trading should be reported as primary source of income at Tax Filing. In other terms making sufficient money to pay off lifestyle expenses on a regular basis. [click to continue…]
by Karma on September 22, 2010
Click on the attached flow chart to see the dynamics of a breakout from support/resistance in terms of market profile.
