TA research ,discussing ideas and strategy testing and results

[MPDT]

HI, I am very interested in study of the market from a TA perspective, and the dynamics behind it all.
I have found onver the years that there are very, very ,very few traders who actually have an outstanding strategy or understanding of price behavior (including myself). I can count on one hand the number of people I know who have the ability to step into the market every day and amaze you with the money and trades that they make. And those that have the ability are not that excited to share this valuable info.(I cant blame them). With daytraders I have seen over a million dollars made in about 1 week, and 20 -100k in a day . And it is usually the same few traders making it. It is not an exageration that only about 2% of traders make 98% of the money in the market or close to those figures.
My goal is to understand the market and the underlying dynamics that cause the various signals chart signals to occur. The reward for gaining this advanced knowlege is limitless imo.
And you won't find it in books , it must be discovered by our own research imo. The books have the basics and they are 50/50 at best.
Anyone interested in discussing their own strategies or research of strategies or chart principles that they have noticed , please fee free to post it here and I will do the same. But this idea is not a , chart 101 class , it is more for those who have done some homework and studies on their own to supplement it. hopefullly we can dig up some valuable info by sharing and giving feedback and experience lessons.
good trading

[MPDT]

I think I am gonna focus on one stock GOOG, for TA discussion and study. Principles that I am researching are:
Support and resistance,Trendlines,EMA ,stochastic,and formations of price bars,volume to a degree, whole numbers.
I use multiple time frames.
Prioritizing them according to the natural precedence the larger the time frame the more priority that time frame has.
My goal is to prioritize the principles listed above to establish optimum entry levels which provide specific stop loss levels and profit potential.
todays sample trade was a short at 299 at 12:53 central time with a .65 cent stop loss. The trade (not an actual trade). wife home gotta go.

[MPDT]

GOOG yesterday, I didnt see any huge signals yesterday other than a possible approach of daily support . Intraday I was testing a few things . ONe of which is an ongoing study of the 20 bar 1 min. EMA. This functions somewhat like an automatic trend line. GOOG yesterday provided about 13 point of movement on one side or the other of EMA. I allow up to 2 bars (minutes) to crossover the line without corrupting the signal. A crossover that is initiated by some sort of base stands a good chance of prolonged movement on that side of the EMA.

[eliteG]

hey MPDT, what a topic heading  that is my favorite stuff!  I'm evaluating your 1-min 20ema theory on GOOG.  thx (applaud).. I'll try to come up with something for GOOG as well 

[MPDT]

sounds good Eliteg, right now ( bout 11 central)I am watching GOOG above the 20 EMA after a trend line breakout. I am still applying trend line principles as well. I really want to come up with some selective guidlines to increase the ratio of W/L and stop/profit ratio..

I am trying to use Trend lines,S/R, EMA and perhaps time of day to establish them.
what type of signals are you using normally?

[randstory]

 Hi, MPDT-

Thanks for bringing up this topic!
Mt own approach to investing is based on investigating both corporate fundamentals and news- a kind of financial forensics. The best sites for disciussion, though, seem to be oriented towards technical analysis, and this site- 3stocksonfire.org- is more an outstanding example than an exception...

Really looking forward to reading your posts, MPDT!
All the best,
                         -rand

[MPDT]

The biggest obsticle is the large number of chart principles or indicators that often conflict with eachother. My mail goal is to prioritize and get them to work in conjunction with eachother.
If an indicator actually works (or a chart principle) then it should always work, and if it doesn't then it is likely due to the same principle on a larger time frame at work or some other principle that is at work and has priority over the failed indicator. It is the context of the set up that will give the clues as to why an indicator failed. I don't just except a failed signal , there is a reason for it and that reason is what I look for to help me arrange and prioritize the chart principles that I am relying on. a chart principle is something like Support, and how a price normally reacts to it.  There are many principles at work in a chart , sorting them out and prioritizing them is how I hope to develop entry, stop loss levels as well as profit targets. All three are required for a strategy to be succesful , and the ratio is what determines it's value as a strategy.

Some indicators and principles simply overlap eachother and are redundant and can be eliminated . That process will allow the number of indiators and principles to be reduced to just a few. but that can not be done until they are researched and tested etc. That kind of describes in a bit more detail what I am doing, and my goals.
The primary tools and principles I am using are
Support and resistance
Trend lines
EMA
stochastics
NUmbers(round,whole,1/2's)
price bars

please feel free to share what works for you.

[eliteG]

GOOG yesterday, I didnt see any huge signals yesterday other than a possible approach of daily support . Intraday I was testing a few things . ONe of which is an ongoing study of the 20 bar 1 min. EMA. This functions somewhat like an automatic trend line. GOOG yesterday provided about 13 point of movement on one side or the other of EMA. I allow up to 2 bars (minutes) to crossover the line without corrupting the signal. A crossover that is initiated by some sort of base stands a good chance of prolonged movement on that side of the EMA.

20ema on the 1min candles looks really nice MPDT(applaud) I am trying to investigate how to reap more of the award using this method by adding trendlines.  Are you flipping the trade automatically on ema violation(shorting it)?  I highly suggest it.  You find a nice volatile  stock and you dont have to play anything else