I am trying to explain what i learned. I am not sure if i will be able to express exactly what i want to say.
earlier my TA knowledge was.....
I was knowing indicators many of them divergences etc..moving averages/crossovers. some patterns like HnS, inverted HnS, double top /bottom, triangles wedges, and many more...some or more theories, Gann or other methods.a big collection of different AFLs. some basic knowledge to edit AFL on trial and error basis to suit my needs..in fact you can say i was knowing most things that anyone who is interested in TA knows.
My trades were mainly based on indicators O/B, O/S zones+ divergence with price.and those patterns. and I was trading !
some trades were huge success and many were failures.. same patterns same indicators still trades were big failure. then i started to try to find more pin pointed entries with the help of more indicators..overlapping them on one another using diff parameters etc. still the story was same.. some big earners many big failures!
I was not knowing the price action is the most important indicator. if a trade was successful i was trying to find similar indicator situations.. and was finalizing that this share will rise or fall ! you can guess what would have happened.
now what i learned here in recent days on Traderji.
. Price action comes before any other indicator. learned to define preferences.
. Whatever I know i learned to try to put those things together.
. I must have a rule set. this i found In Anil trivedi sir's thread. like trendline break and retest. or breaking "xyz" trendline is just a 1st sign of weakness/strength .but yet its not a confirmed trade. I focused on above mentioned two parameters. and slowly started to understand what a trendline really tries to tell us.
. learned not try to trade all patterns.. rather try to understand them slowly one by one.. focus just 2-3.
. Its now defined to me that I will trade only short to very short term trades and I am not investor.
. i somewhat understood the concept of breakout and ranges In Amit sir's thread . and tried to apply it in a short-very short term basis. and getting some more success.
. learned to use at least two diff time frame charts comparison before deciding to trade, it gives more clearer picture.
. Most important things I think, I learned, are any chart pattern can repose itself as some diff chart pattern as trades goes on ! any trend line also can loose its importance to other as price action goes on.
.though I am not a pure price action trader.. now I use indicators as second opinion to confirm probability of success of the trade.
yet struggling with
1. volume and its behavior.
2. how to stay in a trade with TSL. and targets.
3. a big headache.... S/L, how to define it. how to save s/l getting hit in spikes. that is why i opt to trade options more and without s/l (silly thing)
4. Discipline.. a very weak front of mine. trying hard. yet unable to get rid from habit to try to catch tops and bottoms. and breaks own rule set just because of habit of predefining trades..guessing short term tops and bottoms.
