I'm not trying to fire up a debate with you...just trying to spur "out of your box" thinking.
I seriously have a great deal of respect for your work Cirrus, so I do truly not include you in this concept, but.....I constantly see new market traders and would-be technical analysts who in their zeal for "out-of-box thinking" discard everything that WORKS over time and apply every new thought under the sun that they or someone else has, and they end up totally LOST. Then run back and forth, from idea to idea, thinking out-of-the-box, and end up shaking their heads wondering why their indicators keep letting them down. In the end, they conclude and often state that "TA doesn't work".
You've seen it too, I'm sure, right here on this forum. Imho "out-of-the-box" is overrated. Markets never change because people never change. Some things that worked 100 years ago work just as well today and will 100 years hence.
My philosophy of market analysis and trading has always been to search through the coal fields until you find that extremely rare diamond- the .0001% of all indicators that actually consistantly "works" -- then hang onto
each of those precious diamonds for dear life. Out-of-the-box is fine, as long as one remembers to respect those few extremely precious diamonds that he has tucked away
in-the-box. Chances are he paid a high price to obtain them in the first place.
Edited by IYB, 07 June 2009 - 05:30 PM.