You're more than welcome, but I'm sure you realized it was satirical, with my emphasis on "bare charts".
How do all the indicators (and also trend lines) help your profitability? My feeling is they - trend lines - lend themselves to top and bottom picking (see below)......all somewhat unorthodox, I know. But Pros don't use all these indicators. I lived and worked in NYC for 25 years for major financial institutions, but sadly not as a Banker or Trader, (in IT, database), but you tend to pick up a bit after a decade or two.
Most can see a trend in about 2 seconds, just by eyeballing...and a trend line break does not a trend break make - it needs confirmation...say, Suppt / Resistance broken, or peak / trough analysis etc. Any basic text will say that.
In which case they are redundant.
Do they (the several Technical Indicators) assist with Trade and Money Management?
More precisely:
Do they assist with stop size (risk)?
And then Position Sizing (based on total Capital, and stop size, the two together will indicate suitable Position Size to meet your risk tolerance, say, 1%, 2% of Capital Base are typical)....one can find a Position Size Calculator in a flash on the 'Net.
And identification of the most important aspect of trading, Risk / Reward ratio , to see if the trade - of whatever duration, hours, days, weeks - is even worth taking. I don't think I need to explain that.
And Take Profit (TP) level (s) - you want > 1 TP level if incrementally scaling off to pay yourself, risk mitigation, and so on.
I'm not sure that they do. In fact, I suggest they don't.
All these are provided from horizontal lines...Key Levels (Daily Support / Resistance primarily {however identified, and there some quite complex methods (again on bare charts), based on the close study of Market Makers' footprints aka "price", and how it moves, to where, and why}, and optionally drilling down (in time frame), potential reversal signals: pin bars, Engulfing Patterns and two bar reversals the most common. Or they can also substitute / complement Key Levels.
But S/R is key, the very DNA of Price Mechanics , IMO, the fundamental principle being -as you are surely aware - Old Support once broken becomes new Resistance, and old Resistance once broken becomes new Support. Again, I don't need to say that to one with a Heart icon, and 33K Posts, but some might find it useful.
Just my 2 cents.
FWIW, I've always had an interest in Oil.
Regarding top and bottom picking mentioned above (toxic), here's some quotes from a site extraordinarily called "ASX Market Watch!" Presumably not connected to ASX.
"
“I will tell you my secret if you wish. It is this: I never buy at the bottom and I always sell too soon.” – Baron Rothschild"
Why?
- In order to buy at the very bottom or sell at the very top, one would have to be able to tell the future {wombat: no shortage of fortune tellers on HC, or elsewhere...}.
- The problem is – no one can tell the future. Not really (despite the many who claim to be able to do so). {wombat - rampant on HC. Many "know where price is going next" - the reason 95% or more fail, the most toxic belief of all}.
- The majority of gains, and the best quality of gains in a stock or market are made in the middle of a trend. {wombat: can also just play the swing (of whatever duration) - not all are trend traders, don't have the stomach for enduring the inevitable periods of drawdown - since price doesn't move in a straight line}
- A stock or market’s movements are usually choppy at tops and bottoms, with smoother trends evolving in between. {wombat: if a trend trader}
I know nothing about the site, and offer no recommendation; I was just looking for Rothschild's quote and found it there.
Oil will be very interesting from here, with anticipated growth in US, post Elections, and all major asset classes now perfectly in sync in a "risk-on" environment since....Nov. 9, more precisely, after after Trump's Victory Speech 3:00a am AEDT.
Markets liked what they heard, despite previously freaking out as the results of the Election day came in. They all did a 180 U-Turn. Stock Index Futures (DOW 700+ points down, the DXY, gold (negative correlation, gave away a USD 60 gain, and has had the worst Nov. in years), all of them...came back from the grave.
US Equities (record after record levels), DXY (ditto - 13 year highs), Fixed Income - yields soaring up 11% with expectations of inflation (hence higher interest rate / Bond yields), and gold continues to plunge (negative correlation) Why inflation? It typically accompanies econ. growth, something US hasn't seen in the most anemic of all post-WW2 "recoveries", the GFC trough (and hence recovery) officially identified by the NBER as June 2009 (declared in late 2010).
We might note that in all past recoveries, the Fed typically hiked after 2,3 years.
This one took them over 6 years, so it speaks for itself. Not to mention the usage of ZIRP and QE 1,2 and 3 as aids to recover from the 2007-2009 Crisis.
Anyway, this is all the Trump effect (Thread title). Oil of course has it's own fundamentals, its OPEC farce, etc., but with anticipated grallowth, one can see oil usage rising...all carbon fuels, and we are also seeing commodities generally come back from the grave...oil, iron ore (and so, coking coal (I think)), other base metals.
Enough rambling.
Maybe that's even worth 5 cents?
