iCharts Discussions

Padkondu · White Belt Joined: 23 Jan 2008 Posts: 120

dear all

i plotted the fibonacci retracements of each swing of the tatapower chart and the MACD(55/89/13). i observed that the cross of 61.8% retacement occurs approximately where the cross over of macd line with signal line occured. this is for those who asked me the importance of the set of parameters for macd. i have to check this with other stocks. i do not say that this may happen all the times with all the stocks. this is just out of interest - we may have something new to learn.

regards
padkondu

ajayhkaul · Yellow Belt Joined: 18 Jun 2009 Posts: 866

Sorry to disappoint you padkondu , but there is NO magic in any of the technical indicators and tools. There is no precision also .

They are exactly - INDICATORS- and help you to visualize probable scenarios. However, the next event or catalyst can change everything. For example the GDP news today would have made all technicians revise their views that were formed yeaterday

Almost all indicators are lagging indicators as you are aware.

phoneix · White Belt Joined: 16 Feb 2012 Posts: 21

nand67 · White Belt Joined: 28 Jun 2009 Posts: 4

Dear Padukondu,
Price is the only real time indicator. profit from prices is one book which gives good insight on this subject.

rk_a2003 · Black Belt Joined: 21 Jan 2010 Posts: 2734

Mr.Phoneix

I wonder How one can be so irrational?.In what way your comment is related to the opinion expressed by Ajay?

How do you repudiate the fact that fundamentals dictates technicals?Just by abusing?!

Pathetic way to support any view point. What ever great the view point could be.

It's no way going to help your argument.

psalm · Black Belt Joined: 12 Nov 2011 Posts: 5368

Rk,

I dont think Phoneix was serious about that comment.....also, i feel that the comment was not against Ajay or Padkondu.....Phoneix and Ajay have been sharing some lighter moments in the last few days.....I feel that the comment was made only in that sense.....just like a joke.... Smile

ajayhkaul · Yellow Belt Joined: 18 Jun 2009 Posts: 866

Regardless of what was meant , it is good to avoid four letter words entirely as they surely offend readers and ruin the atmos and learning.

PHONEIX -- technical analysis helps us construct scenarios and instill discipline while helping us overcome emotional decisions because in TA we are dealing with numbers/signals( just like at the traffic red light ,you just stop or get killed - you dont get emotional about missing the green light).

In absence of TA , one would use mental stops,entries and exits - which leads to emotional response to price movement - a recipe for disaster.

TA provides a framework for decision making and trading is all about making decisions.

*****************************************
I would like to share this gem with padkundu so we can look at the indicators from 'traders' perspective:

Most traders begin by learning about a lot of indicators, put those indicators on a chart, and then try to figure out what the market is going to do. This is fundamentally wrong.[/b]

Now consider this typical decision point for the trader :

[b]The RSI is moving down from over-bought territory, giving a sell signal, but the market is above the moving average. What do you think the market will do next?

Similarly :

The RSI is moving up from over-sold territory, giving a buy signal, but the market is below the moving average. What do you think the market will do next?

these are trick questions.

The successful trader does not concern his or herself with trying to predict the future. This is why most traders lose. The problem is they are asking the wrong question.

The correct questions to ask is, "What will YOU do next."

Sure, you can make an educated guess as to what the market will do, but you must know with certainty what you will do.

With this I rest my case and retire from this discussion.

phoneix · White Belt Joined: 16 Feb 2012 Posts: 21

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

ajay, ultimately one would decide what ONE would do based what one's brain concludes after chewing on some input(s) only. And these inputs come from FA and TA. Sometimes though the brain just doesn't conclude or freezes and then one misses the bus or looses.

Your term has ben extended!

SwingTrader · Posted: Thu Mar 01, 2012 9:52 am Post subject:

Padkondu,

I will only say....keep going....ignore everybody and keep building & testing trading methods, you will gain invaluable insights into how price & indicators itself behave. Eventually as others have pointed out price is the ultimate indicator and sooner or later one will come back to it and start relying on it for trend direction but you have to go through this process and develop the understanding yourself. There are no shortcuts. Wish you the best!!!

SwingTrader · Posted: Thu Mar 01, 2012 9:57 am Post subject:

Ajay,

Please don't tempt me again to start argument about technical vs fundamental analysis Very Happy

But can't resist your GDP comment - sorry to disappoint YOU - those numbers yesterday did not change anything technically for technical analysts. No fundamental or economic numbers can change anything for technical analysts. Only price will change things for us and price did not do anything sufficiently dramatic yesterday to change things. I have relied all the time on technicals since I have started trading without looking at any funda/eco numbers and thrived well. Funda/eco numbers are good for entertainment though....

pkholla · Black Belt Joined: 04 Nov 2010 Posts: 2890

ajaykaul: many paths lead to god but only 1 god. Many paths are used to find profit, why are you upset. u follow your path, let others use theirs. if someone wants to throw chicken bones (in Haiti!), isse humay kya karna hai. relax and make some money, rgds prakash holla

sherbaaz · Yellow Belt Joined: 27 May 2009 Posts: 543

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Dear ST, with due respects, I am surprised at your views, irrespective who they are addressed to or the present context. Isn't it obvious that, while changes in price decide technicals, price itself changes only due to news and events, in immediate/short/long term, depending upon the repurcussions of these event/news and the psychological and technical interpretations by traders and investors of the events?

Even the books on trading refer to SA/FA/TA as three vital and only legs of a three-legged stool, each important in its own way and at its appropriate time. Isn't your view then like wearing blinkers? I am asking this not to chide you but in the interest of many who are trying to learn and should have a holistic approach.

For me though "A" is also important to an extent! Smile

I trust you will take my comments in proper prespective.

rk_a2003 · Black Belt Joined: 21 Jan 2010 Posts: 2734

I have relied all the time on technicals since I have started trading without looking at any funda/eco numbers and thrived well. Funda/eco numbers are good for entertainment though....

It’s good to hear that you thrived well in trading solely relying on technicals.

May I ask you few questions ST

• Will Fundamental analysis blunt Technical analysis?

• In final analysis TA is solely based on price action .Price action is surely not based on TA.Then what causes price movement? Is it not Fundamentals?

• If the answer is yes why should we ignore such a crucial factor which decides price action?

I feel understanding fundamentals enhance market player’s success rate rather than using it for mere entertainment. Warren buffet who is considered as a legend investor relies solely on fundamentals.

I don’t see any conflict between FA and TA whereas FA is foundation TA can be considered as super structure. They complement each other.