Post reading-trading for a living)

After reading the notes more than a year ago, I pulled them out again. It may not be that much, or you don't care about it anymore. As a matter of fact, I have been quite resistant to many indicators, but I still don't know a few of them now. I have forgotten many of them. But I am too lazy to change it.

Code for growth
1) Deciding to enter the market is a long-term plan-that is to say, you want to trade for 20 years from now on;
2) learn as much as possible. Read/listen to experts, but keep certain questions about everything. Ask questions, not simply follow the words of experts;
3) Don't rush to trade because of greed-Learn from time. The market will have more opportunities next month or next year;
4) Develop a set of methods to analyze the market-that is to say, "If a happens, B may happen ". The market is multidimensional and multiple analysis methods are used to confirm transactions. Test in historical data, and then use real money to test in the market. The market is always changing. You need different tools in the bull market, bear market, and intermediate conversion time. In addition, you need a set of methods to illustrate the differences in the market;
5) develop a fund management plan. The first goal must be long-term survival. The second goal is stable capital growth. The third goal is to make a lot of money. Many traders regard the third party as the first and fail to realize the existence of the first or second party;
6) realize that traders are the weakest part of any trading system;
7) The winner thinks, feels, and acts differently from the loser. You must examine yourself, remove the illusion, and change the old habits, thoughts, and actions. It is difficult to change, but if you want to become a professional trader, you have to struggle to change your personality.

The meaning of a price bar (in a daily chart, others also apply)
The opening ceremony was determined by amateur traders who accumulated transaction orders to enter the market overnight in the morning. The closing price is mostly determined by professional traders who trade all day. If the closing price is higher than the opening price, professional traders may be more bullish than amateur traders, and vice versa.
The highest price indicates the maximum capacity of a bull in a period of time, and the lowest price indicates the maximum capacity of a bear in a period of time.
The gap between the highest and lowest prices represents a conflict between bears and cows. The average length indicates a calm market, half of the average length indicates a market that is not interested, and two times the length indicates a hot market that coy bears compete.

True and false breakthroughs
The best time to make a breakthrough in purchasing on a daily chart is when a new rising trend is suggested in the weekly chart. A real breakthrough is confirmed by a large amount, and a false breakthrough tends to be smaller. A real breakthrough is confirmed by technical indicators at a new extreme high or low level. False breakthroughs are often pointed out by deviations between prices and indicators.

Trend and consolidation (range)
Different tactics are easy to use in trend and consolidation. When buying or selling is on the rise or fall trend, you must give room for suspicion instead of being easily shaken out. If you fasten your seat belt while the trend continues, it will return. When trading in a consolidation period, you must be agile and have a slight sign of reversal to close the position.
The difference between another trend and consolidation tactics lies in the handling of strong and weak points. The trend must follow the strong trend, and the sales trend is declining. When the price is in the Consolidation range, the opposite must be done, and the purchase is weak and the sale is strong.

The Hound of the Baskervilles
The Hound of the Baskervilles signal is formed when a reliable signal does not evolve into the action you expect and the price moves in the opposite direction.
This signal comes from a collection of Sherlock Holmes's case. He found an important clue that the dog at home did not call the murder. This shows that a dog knows a criminal, and murder is a inside job. The fact that there is no expected action gives a signal.
When the market refuses to respond to a perfect signal, this gives you the Hound of the Baskervilles signal. This shows that fundamental changes have taken place on the surface. This is the time to follow up on new strong trends.

Three groups of Main Indicators
* Trend-following indicators: Include Ma, macd (Moving Average convergence-divergence), macd-histogram, the directional system, on-balance volume, accumulation/distribution, and others. trend-following indicators are conincident or lagging indicators-they turn after trends reverse.
* Oscillators: Help identify turning points. they include stochastic, rate of change, smoothed rate of change, momentum, the relative strength index, Elder-ray, the Force Index, Williams % R, the commodity channel index, and others. oscillators are leading or coincident indicators and often turn ahead of prices.
* Miscellaneous indicators: provide insights into the intensity of bullish or bearish market opinion. they include the new high-new low index, the put-call ratio, bullish consensus, commitments of traders, the advance/decline index, the traders' index, and so on. they can be leading or coincident indicators.

Trend-following indicators work best when markets are moving but give bad and dangerous signals when the markets are flat. oscillators catch turning points in flat markets but give premature and dangerous signals when the markets begin to trend. miscellaneous indicators provide special insights into mass psychology. the secret of successful trading is to combine several indicators from different groups so that their negative features cancel each other out while their positive features remain undisturbed. this is the aim of the Triple screen trading system.

Ma
SMA is not only affected by the newly added price, but also by the removed price, which is not stable. Ema is better.
Select the length of Ma. The longer the trend you want to grasp, the longer the length of Ma. Most traders choose 10-20 days. It is better not to be less than 8 days because this is against the purpose of Ma.
Donchian, one of the initiators of MA, prefers the 4/9/18ma crossover signal. Note that this is only applicable to strong trending markets.
Traders must understand that Ema has a good and a bad side like other tools. Ma helps you identify and follow trends, but in the consolidation phase, both sides will be damaged. When EMA stops using the tool that follows the trend but continues to follow this indicator, waiting for the next trend.
Ma can be used as support and resistance. The upward Ma serves as the support, and the downward Ma serves as the resistance. Some traders use the 5-day transaction volume Ma to determine the market's interest in trends.

Macd
Fast macd line is formed by short-term Ma minus long-term Ma. Slow signal line is the MA of fast macd line, and macd-histogram is the fast macd line minus slow signal line.
Macd expresses a comparison between the short-term and long-term market atmosphere. Then, just as the price crossing MA indicates a change in the price increase/decrease trend, fast macd crossing slow signal indicates a change in the atmosphere of the ox and the bear. Although macd-histogram is positive, it is the bull's master and the bear's master, but the change in the direction of inclination is a turning point for the ox/bear to exhaust. For macd-histogram, skew is more important than positive or negative. When the price is in one direction while macd-histogram is in another direction, the force pushing the price is weakening as it is exhausted.
Macd-histogram is frequently used in daily line charts, which makes sense in weekly line charts. Macd-histogram is like a headlights, giving traders a glimpse of the path ahead.
Ta's strongest signal: the deviation between macd-histogram and price occurs only a few times in a year, but one of the strongest ta information. These deviations point out major turning points and give "super strong" sales signals. They are not at the top/bottom of every important one, but when they appear, there is a great opportunity to reverse.

The directional System (DMI)
DMI determines whether a bull or a bear is counted based on the amount of data that exceeds the transaction range of the previous day. + DI is the sum of all values that are higher than the total transaction range of the previous day and the total transaction range of the two days.-Di is the sum of all values that are lower than the total transaction range of the previous day and the total transaction range of the two days, DX is the difference between + DI and-Di and the sum of the two. ADX is the MA of DX. When ADX rises, it indicates that the market's bull or bear power is increasing (depending on + DI/-Di who is above ). The decline indicates that the trend (Bull or bear) is weakened. At this time, it is best not to follow the trend. ADX below + DI and-di indicate that the market is calm, while above both, it indicates that the market is overheated. The best signal of DMI is that when ADX is under the two (the longer the time, the better), and then increases to a certain extent (for example, 4 points), it points out the emergence of new trends (cattle or bears.

Oscillators
Oscillators helps find a turning point. Oscillators is easy to use in range transactions, and is not mature and dangerous in trend transactions. A good choice in trend trading is to buy and oversell in the rising trend, and sell and overbuy in the declining trend.
Type of deviation:
Oscillators, like other indicators, the best signal is when they deviate from the price. There are three kinds of deviations. Type A is the best signal, type B is stronger and weaker, and type C is the least important.
Type A's bear deviation occurs at a high price while oscillators only reach a lower level. Type A's bull deviation occurs at a low price innovation while oscillators only reach a lower level. They usually lead to intense reverse motion.
Type B's bear deviation occurs when the price is double-topped, while oscillators only reach a lower height. Type B's bull deviation occurs when the price is double-bottomed, and oscillators only reach a higher lower value.
The bear deviation of type C occurs when the price reaches a new high, while the oscillators performs dual-top. The Bull deviation of type C occurs when the price innovation is low, and the oscillators performs double-bottom.

Williams % R
WM % R represents the position of the current closing price within a period of time (HR-C)/(HR-LR ). R: How many days, H: maximum price, L: Lowest Price, C: closing price. If a bull cannot close near a high position, it looks more fragile; if a bear cannot close near a low position, it looks more fragile.
WM % R provides three signals, sorted by importance: Bull or bear deviation, failure swing (failure swings), overbought and sold.
Deviation: the deviation between the price and WM % R rarely occurs. They indicate the best trading opportunities. When WM % R rises above the reference line, drops, and fails to reach the reference line next time, a bear deviation occurs, indicating that the ox is losing its strength. On the contrary, WM % R is dropped to the lower reference line, and then rebounded. When it drops again, it cannot reach the lower reference line, which indicates that the bear is losing its strength.
Failure swing: the masses tend to shift from one extreme to another. WM % R rarely reverses in the middle of the range. When WM % R cannot be switched above or below the reference line, it is a failed swing (Note: From the examples in the book, it is very close to the reference line ).
Overbought and oversold: the overbought and oversold products are useful in range transactions. Over a long period of time in the rising trend, purchasing is sustainable, which expresses the strength of the trend rather than short selling opportunities. The decline trend is sustained for a long time, which expresses the strength of the trend rather than buying opportunities.
The overbought and oversold indicators should be used after the main trend is clearly defined and achieved with the long-term trend-following indicator. If the weekly chart shows a bull market, only the WM % R buy signal (oversold) is used. If the weekly chart shows a bear market, only the sell signal (overbought) is used ).

Stochastic
Stochastic can be said to generate indicators similar to WM % R multiple times smoothly. Stochastic is composed of two lines: Express Line % K and slow line % d. Express Line % K is similar to WM % R, % K = 100 * (c-ln)/(HN-ln ). N: How many days, H: maximum price, L: Lowest Price, C: closing price. % D is % K (usually 3 days), % d = 100*3-day sum of (C-ln)/3-day sum of (HN-ln ).
The two stochastic types are fast and slow. The fast stochastic consists of % K and % d. Slow stochastic uses % d of fast stochastic as % K and smooths % d again.
Stochastic provides three signals, sorted by importance: divergence, horizontal position (overbought and sold), direction.
Deviation: the bull's deviation occurs when the price innovation is low and the stochastic forms a higher low level. When the stochastic changes to rise, it is a strong buying signal. The best buy signal is that the first bottom is below the reference line and the second is above the reference line. The bear deviates from the opposite.
Overbuy and oversell: use the product when the long-term trend is determined. When an upward trend is indicated in the weekly chart and stochastic falls below the reference line, crossover or redirection signals are given. The shape of the stochastic base often indicates the strength of the recovery. The bottom is narrow and light indicates that the bear is weak and the rebound tends to be strong. The bottom is deep and wide indicates that the bear is strong and the rebound tends to be weak.
Do not buy when Stochastic is oversold or sell when Stochastic is oversold. This rule filters out many bad transactions.
Direction: the short-term trend is confirmed when the two stochastic lines and prices move in the same direction.
Weekly stochastic usually changes direction one week earlier than weekly macd-histogram. When stochastic turns around every week, remind you that trend-following macd-histogram may turn around next week. This is a sign of tightening stop loss or starting to cash in profits.
It is important to select the calculated width of stochastic. If you only use stochastic, the stochastic length is better. If you use it with the trend-following indicator, the value is shorter.

RSI
RSI uses changes in the closing price to measure the market power. RSI = 100-100/(1 + RS), RS = average rising closing changes/Average falling closing changes. Closing changes: the difference between the closing price and the closing price of the previous day.
RSI is a leading or simultaneous indicator-Never lagging behind.
RSI provides three signals, sorted by importance: divergence, charting patterns, and horizontal position (overbought and sold)
Deviation: similar to stochastic.
Graphical mode: trendlines, support/resistance. The header and shoulder chart can be used on RSI. RSI usually completes these modes several days earlier than the price, giving a hint of trend changes. For example, the RSI trend line is often one or two days earlier than the price trend line. When RSI breaks the downward trend line, it places orders and buys orders above the price trend line to seize the upward breakthrough. When RSI breaks the rising trend line, it places an order and sells it under the price trend line to seize the downward breakthrough.
Overbuy and oversell: buy with the oversell signal only in the rising trend. Only use the superbuy signal to sell in the downward trend.

Volume
High transaction volume validation trend. If the price hits a new high and the amount reaches a new high, the price is likely to be re-tested or above this height. If the price innovation is low and the amount reaches a new high, the "climax bottom" is almost always re-tested in a small amount, providing a good buying signal.
When the market is innovating in a small amount, it looks for a sell signal. This technology is not applicable to the bottom of the market because the decline can be sustained in a small amount. Wall Street said, "We need to buy them to increase prices, but they can only fall by their own weights"
Pay attention to the amount of anti-trends observed.

On-balance volume
OBV is the sum of values. High Price acquisition indicates that the ox wins and the amount is added to the OBV. Low Price acquisition indicates that the bear wins and the amount is subtracted from the OBV.
The patterns mode of the OBV top or bottom is more important than the horizontal position. The horizontal position depends on the day from which the calculation starts. The trend is confirmed when the OBV and price increase or decrease at the same time.
The deviation between OBV and price gives a strong trading signal. Long-term (such as weekly) deviation is more important than short-term (such as daily) deviation.

Accumulation/distribution (A/D)
It is similar to OBV, but only part of the quantity is effective. A/D = Volume * (close-open)/(high-low)

Channel trading systems
Four ways to draw a pipeline: 1) a trend line and a line parallel to it; 2) a line parallel to and from Ma; 3) similar to 2, only the distance between the two online and offline lines is related to the degree of market volatility (Bollinger bands); 4) draw two Ma values at the highest and lowest prices. I personally think there is no certain formula. The real rule is to draw two walls on both sides of the fluctuation so that most of the turning points are within the wall and try to approach the wall as much as possible, some rules are similar to the 5% rules drawn by the oscillators horizontal reference line.
Amateur and professional users use different pipelines. Amateur traders tend to buy a breakthrough at the top or sell a breakthrough at the bottom. On the contrary, professional traders sell when the above breakthrough stops and buy when the below breakthrough stops.

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Personal thoughts
In fact, the so-called TA in general is to seek a balance between the more cattle, the more bears, and the longer the rise will fall for a long time. This is also the reason why some master books do not need ta indicators after reading thin books, because they have grasped the essence and found a sense of measuring degree. For new users, the degree is uncertain, so quantitative search for inbound and outbound points. Let's assume that some factors represent the power of a cow or a bear, quantize, plot, and point. The degree to be determined after quantification is not necessarily correct, but the probability is higher, especially because more people are used to enhance the effect to a certain extent. In this case, risk control is particularly important.
So how should we grasp it? Ultimately, it is still fundamental. The fundamentals are not necessarily absolute right or wrong, good or bad, but the acceptance and rejection of the masses. Interaction between fundamentals and technical analysis, coupled with reasonable risk control, may be the key to success.
Attention should be paid to the fundamentals, not to be too persistent with your own ideas, and to be cautious with technical analysis rather than rigid formulas or parameters. Self-confidence but not stubborn. In the final analysis, this is not a mathematics.
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I am a newbie, focusing on discussion. I hope you will not mislead me if you say something inappropriate.

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