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.