Sunday, March 27, 2016

A Technician's Guide To Subjective Trading


There's this thing about us technicians on how we analyze things in the chart and see price action before they happen. It's like we're on NZT or something.



With the surge of people in FB Groups and social media who are now openly sharing their Tech Analysis and Hype Charts, we will try to talk about the popular ways on how we can go into the realm of Subjective Trading. Because sometimes, you just can't help it. The beastly menace within you, urges all your body cells to Hype yourself. And in the process, hype others. This post is part two of The Deadly Trading Mindsets. If you haven't read that post yet, I suggest you do. 


Let's Begin.



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1. Using many indicators 

Don't like a sell signal on your chart? No worries! Just take out that loser that's going against you and leave all the ones that tell you what you want to hear. It's nothing personal really. And besides, you'd look like a pretty bad ass ginyos!



"Good Vibes lang"

Maybe in the future when that indicator gives you that sweet 3-Letter word, then you'll let her join your little group.





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2. Switching to the Line Chart

Wicks are sometimes an eyesore to us technicians. "If not for that lousy shadow, the chart would be PERFECT!" A Wick means Weak. That's why you see some tech traders ignore wicks and just go for body to body analysis. And what better way to remove these darned things by switching to that line chart?



Problem Solved!

Kind of like how makeup does its thing. So when you see a line chart posted somewhere that looks perfect, be careful. Be VERY careful.




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3. Channels and Trendlines

Channels and Trendlines are a universal thing. It can give you a projection or an estimate of where things could go. But just like any other tool, they have limits. 



Channels and Trendlines work on a very subjective level. Their placement will depend on the eyes of the beholder. 

Example : You buy on trendline support then all of a sudden price breaks down from that trendline support. What do you do? Proceed to use the horizontal support instead where it's still a buy. (Thanks Fullmetal Chartist)




If prices go on the border of those two, it's probably a sign to buy or sell right? But what do you do if prices go beyond those levels? What if you like using the LOGarithmic chart instead of the LINear chart?

This is just me, but trendlines and channels are illusions. The Moving Averages along with the Absolute Support and Resistances or Pivot Points are the real deal.




But what the hell? Let's all be subjective right?


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4. Switching Timeframes

You find yourself hopeful on a stock that you have but the short term chart tells you it's gonna fall. So what do you do? Pep talk yourself by looking at the weekly or monthly charts - even if they haven't completed their candles yet.




"Okay lang yan! Long term ako jan."

InvesTraders usually do this. Traders who are forced to become investors because of their long term analysis.



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5. Pattern Modification and Form Fitting

You see a pattern that's awfully popular. But you're not quite sure if you're seeing what you're seeing. You don't confirm the pattern with the internet because, YOLO! "Why isn't anyone posting any charts?" You ask yourself. Of course! Ikaw lang hinihintay magpost. So you go with your ignorant gut and claim the pattern!




And if you accidentally found a pattern that no one else has, and it worked the first time, why else wouldn't it work the next time? So you go on and name your pattern. Even put a trademark. After all, you are now a stock-market ginyos!


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There's a fine line between chart sharing and chart hyping. If you are a good trader and technician, there's no need to hype. What for? But if you do feel like hyping, then by all means hype! But keep it to yourself.

These are the big 5 on Subjective Technical Trading.
Any violent reactions? Did I miss anything? Let me know in comments below.


30 comments:

  1. Thanks for the good read sir Zee!

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  2. Nice sir zee! More please :) happy easter -JM

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  3. are you against those members of your tribe that post charts?

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    1. Its the gurung ulul's hyping that let their own chart fit on their own bias and not on the market sentiment.

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    2. I'm against hype charts and subjective charting. If a ZFT posts one, then I'm against it. But who am I to order people around? It's a free country. Everyone is entitled to their own opinion.

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  4. Boss zee can u try the inverted chart by toby, it make me feel good after that hue hue hue

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    1. I'll post sa twitter one of these days. :3

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    2. hi zf!!! hahaha..

      first ko rin makakita ng inverted chart nung nakaraang araw ang i'm like woah??? sino naman maniniwala sa ganito??? ~ , ~ pero meron talaga.. umpfz

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  5. Is this how you analyze your trade plan? - RR

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  6. This is is how they dissect gurung ulul's motive to the newbies. to hype and be dumped!

    - real rene requestas

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  7. thanks senZee ...till this time it helps me with new revelation from your blogs ..what more dun sa still on HYPE beasts mode ...it really helps a lot of people ...more pa senZee :)

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  8. thanks sir ZF...
    its really hard for beginners like me to know which ones are real / hype - though sometimes it helps me to learn since I have to read more charts from technicians, and even try to create one myself (even if I dont really know that much on charting)..

    its a good thing that there are technicians like you....

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    1. It's hard to think objectively kasi it takes a lot of time and practice to know what is right from wrong especially pag wala kang tamang mentor to help you out. It's easier to be subjective and think of money. It's Human nature.

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  10. Master your right to feel confident they just manipulate the chart to denied that they are not ipit and still more chance to recover.

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  11. Nice picture its moving no nned to go to the next pages thanks boss and happy easter to you, your family and to the tribes.

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  12. Good read Sir Zee. a lot of newbies have been a victim of this. by the so called geniuses and gurung ululs of the market. inviting to join their bandwagon dangling a piece of meat saying your money will surely dobol.

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  13. You might have missed something like this:

    buys on trendline support
    price breaks down from trendline support
    uses horizontal support instead where it's still a buy

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  14. Thanks Boss Zeefreaks for this warning!

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  15. salamat ng marami boss still trying to read all you blog but this is gold heheheh

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  16. thats why you use RSI with MA and darvas since these indicators don't lie?

    Ung sa RSI nyo boss zee, due you use principles, like the RSI 60 40 levels?

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  17. thanks, the channels are an illusion hit me :D

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  18. Very informative! Thank you for sharing your insights master ZF! :-)

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  19. Thanks sir! Naliwanagan ako dun ah. ��

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  20. as always....freshly cooked and cooked just right.saludo bongga

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  21. di po ba sir subjective lahat ng technicians kasi we decide to buy or sell based on our indicator of choice? even moving average users move their sell price kung 4 na MAs ang gamit. what makes changing candlesticks to line or daily to weekly different from a person using moving averages then saying "lumampas sa 20ma, dbale meron pa ung 50. lumampas uli, sa 100ma malakas na support yan. then pag bumaba pa lalo, sa 200ma huling hirit"?
    pero sobra tawa ko dito sa pinapangalan sakanila ung pattern. meron kasi akong nakikita na kala mo sila naka discover ng moving average (both single and MA cross). inaangkin nila HAHA

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  22. thanks!worth sharing & very informative Sir Zee!
    some so called gurus are using this strategies using TA's such as EMA*~SMA* MFI calling it buying pattern (with background music) huehue..

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