[quote=“clemmo, post:25, topic:117027, full:true”]
I’m not sure why there is so much emphasis put on naked trading and charts … They use the MT4 version of MACD set to default settings and then come to the conclusion that indicators aren’t useful. Well, they’re right, in the end. I suppose that’s what people mean when they say, ‘whatever you believe about the market ends up being true’.[/quote]
The main reason for the popularity of “price action” and “naked trading” is that people nowadays want an “off-the -shelf” product that, like buying a car, works by itself, is reliable, is fast off the grid, looks and sounds cool - and with no need to look under the hood or open the manual.
Unfortunately, as we all 100% know, that does not exist in trading models. But still people seek it.
However, people have come to doubt indicators through the wide promotion of their deficiencies such as “lagging” and the observation of the general failure of widely promoted and continually sold models based on them.
But PA is a bit different. You cannot really “productize” PA methods as it depends on the current developments of price. That is both its benefit and its problem. Simply connecting the dots on a naked chart does not produce a winning scenario. One still has to know what is going on “under the hood”, what kind of road we are on and where we are trying to get to,
If someone buys a set of the finest surgeon’s knives off the flea market and reads a few books and watches a few YouTubes, would you let them near your appendix?
The point of this thread was to point out exactly that: That PA is apparently not as simple as it is made out to be because whilst many talk about how they are a “PA trader” there are not many that get as far as actually talking about it from their experiences.
This, at least in my opinion, is precisely the heart of the problem. To be consistent in trading you need to intimately understand how your market works, how you want to approach it, and what you are going to need that will tell you what you need to know, in order to succeed.
I was just this morning reading a BBC article about the Chinese Communist Pary Congress in Beijing and I read one of the thoughts attributed to President Xi Jinping and I thought that really applies to learning trading:
“Life [trading] is like a shirt with buttons where you have to get the first few right or all the rest will be wrong.”
it is no good picking something and “seeing if it works”, then try something else, and them something else, for as long as one has some money left…
You need to ask “what do I need to know about this market in order to do with it what I want to do” - and when you know that then you look for the appropriate tool for that function whether it is an “indicator”, or a PA technique, or a home-made “gadget”.
The main reason is because no one wants to button up someone else’s shirt for them (yeah, yeah, I know there are some shirts that one would certainly like to unbutton). But there is a great willingness amongst “veterans” to help others on their curve - if they are genuine in their learning: People like Viper, Tommor, Clint, to mention just a few.
These people are not giving away trading “systems” or looking for followers, they are just giving from their own experiences.