It occured to me that there are two very distinct types of traders that come to this forum: chartists (the artists) and quants (the scientists)
I would guess that over 3/4 of the folks here are chartists... they draw lines on their charts, and through some sort of artistic interpretation of where the price is relative to their lines, they assume the price will hit that line or move away from it.
On the other hand, you have folks like me that think that artistic interpretation is too unreliable, and go for a more numerical approach. We believe that the only true indicator is momentum, and that momentum isn't limited by a projection relative to a line, but rather to it's historical characteristic of price runs in the past.
This can be the use of technical indicators, neural networks that pull data from other sources other than the chart, and fundamental analysis such as COT reports.
I suppose we could even group a third set of traders as strictly news release traders... or folks basing their decisions solely on what they are reading in the newspaper and speculate based on world events ("I bet the Euro will collapse", etc)
If you fall into the second catagory, it would be nice to discuss the factors that you use enter and exit your trades.
I would guess that over 3/4 of the folks here are chartists... they draw lines on their charts, and through some sort of artistic interpretation of where the price is relative to their lines, they assume the price will hit that line or move away from it.
On the other hand, you have folks like me that think that artistic interpretation is too unreliable, and go for a more numerical approach. We believe that the only true indicator is momentum, and that momentum isn't limited by a projection relative to a line, but rather to it's historical characteristic of price runs in the past.
This can be the use of technical indicators, neural networks that pull data from other sources other than the chart, and fundamental analysis such as COT reports.
I suppose we could even group a third set of traders as strictly news release traders... or folks basing their decisions solely on what they are reading in the newspaper and speculate based on world events ("I bet the Euro will collapse", etc)
If you fall into the second catagory, it would be nice to discuss the factors that you use enter and exit your trades.