This is it, A on A - the age old question, do we need anything more?
It feels so easy in hind sight, but when you are staring at the chart, you see price racing up, and then you see that often spoke of thing ‘Resistance’ - wow, you have to go short here. I mean, everyone goes short at resistance - it says so in all of the books.
Maybe you are right d, maybe it really is so simple as looking at the longer time frame, then again, I do wonder how many of us did really do that, I suspect few, maybe this is when we need B.
This was a calculated plan, i rather get no reply than a load of people giving random opinions loosely related to an open question. Questions like “what is the holy grail” wind me up.
I like trying to understand the people who make the grandiose sweeping statements. I’m not sure how people think that they have everything completely dialed. I mostly assume its in-experience but i was just interested in other reasons.
Thank you so much. This was basically the discussion that i wanted to have but i think i phrased it badly. Thank you for giving it more clarity.
I am more in the A is driven by B camp and there but i can give reason to this. There are people who say that a head and shoulders pattern has a certain percentage chance of causing a reversal. I would agree with the statement the issue is getting the trade on is conditional on the pattern forming and more of the time when you can clearly see a pattern has form a lot of the profit has already gone.
I think the advantage of trading an asset off another asset is that in certain cases you can still get a good RR even if B has already gone on a solid run. What i am trying to say in short is, its not using B gives you a higher probability that the trade will work out. It just gives you better timing so you can get a bigger slice of the pie and need less confirmation from A itself before you take the risk.
I am not advocating the use of the RSI nor do I tell traders not to as that is an individual choice, but in most cases it is not the indicator which does not work properly but the trader using it or trying to use it.
I’d never enter a trade because of an indicator such as RSI, but in looking to find further, supporting arguments for or against a trade setup I am already considering I find that RSI works well on the higher timeframes.
The main thing this thread has taught me is be careful what you put as the title. The point was meant to be more how can you predict A using A. Im not that bothered about RSI as such but i have come ot the conclusion that I think there is value in it in retrospect but momentum indicators are useful for confirming specific things such as break outs rather than a one size fits all tool.
Just thought I would put a spin on this statement.
If you introduce the actions of B that have an influence on A then how did you already know that B influences A? My guess would be that you know this because it has happened before, hence historical outcomes? So is this then not the same as predicting the future action of A based on the past action of A (either way, both approaches drill down to a common denominator - past action)