Trading Technical Analysis (Stocks/Crypto)

[ashdgee]

Good day traders

Im just curious, to those of you who are experienced/intermediate traders be in crypto or traditional stocks, what analysis tools do you use to execute your trades (Elliot Wave Analysis, Death Cross, Fibonnacci etc)?

Of course markets can be unpredictable but what has worked for you?

 

[cguy]

A ton of machine learning and domain knowledge. Anything else is going to have a poor Sharpe.

 

[Snyper564]

Good day traders

Im just curious, to those of you who are experienced/intermediate traders be in crypto or traditional stocks, what analysis tools do you use to execute your trades (Elliot Wave Analysis, Death Cross, Fibonnacci etc)?

Of course markets can be unpredictable but what has worked for you?

I don't believe TA works for crypto, market is too new and easily manipulated etc Elon farts doge tanks. Crypto is very gut feel for trading and the longer you in it the more likely you are have the correct feel. I even saw someone attempt to use TA for UST/USD.

Now gold on the other hand this is where I believe TA shines and have seen some really impressive results in this realm.

 

[Pho3nix]

A ton of machine learning and domain knowledge. Anything else is going to have a poor Sharpe.

What's a decent Sharpe Ratio?

 

[PseuDohNom]

Macro Risk analysis, public sentiment, fed posturing, trusted YouTube channels, the fewer followers the better.

As for TA, it's all hogwash. Anyone who claims to know where price is going even an hour into the future is delusional.

I use margin pressure levels as a loose guide, but technically this is sentimental too.

BBWP is good for following expansive and contractive phases. It's useful for timing moves after consolidation.

 

[cguy]

What's a decent Sharpe Ratio?

That depends on the product (some are more competitive than others), and the strategy type. Pure arb has theoretically infinite sharpe because there is (near) zero risk. I can’t comment on any specifics because I work in the industry. Online there are some thumb sucks like 0.5 is market returns 1 is ok, 2-3 is great and 3+ is great, but in reality, “decent” depends on product, strategy and strategy capacity.

Of course, a negative ratio is always bad, and that is what I expect most people doing TA will end up with.

 

[cguy]

Macro Risk analysis, public sentiment, fed posturing, trusted YouTube channels, the fewer followers the better.

As for TA, it's all hogwash. Anyone who claims to know where price is going even an hour into the future is delusional.

Well, if they can, they’re not telling anyone how they do it or asking for investors.

 

[gustavo07]

Simple, those who score big will say it works. Those who tried and failed or just never bothered will tell yah its BS.

 

[agentrfr]

Depends if you day trade or swing.

Ichimoku (decide trend or range) and trendlines (when to enter or exit) drawn on bar closes are my favorite tools. (I live on the H4 chart)

Always trade small. Have a wide SL as an emergency. Have a wide TP to catch snaps in your favor. You should manually close most if not all of your trades.

To make money, you have to lose money/margin/equity. Adding to a green position is usually not a good idea, since the relative profit is lower when you close AND your potential loss in close is higher. The closer you are to your SL, the bigger you can trade.

If you daytrade - RESPECT THE VWAP

Do that and you'll be fine

 

[agentrfr]

Elliot wave is fun, but I see it more as a retrospective tool and something usually done on the weekend (on a daily or bigger chart). "In the field" it is difficult to tell whether you are in a B or a 3, or a 3 with extensions. Trendlines in this case become much more useful to me

 

[agentrfr]

Very good advice right there. Many coaches will tell you to never risk more than 0.5% of your trading pot per trade. This may mean that you need a bigger pot to trade viably but that's just it.

Or that you need to slow down, decrease size even further, and increase your SL. Ask me how I learnt that lesson (it is easier to think of it as school fees)