You're focused on short-term gains in technical analysis. How do you ensure long-term accuracy?

El comportamiento del mercado se puede observar como reflejo del comportamiento humano. Si bien, se presentan patrones y tendencias, esto no debe ser considerado como absoluto. Los patrones y tendencias nos permiten reducir el riesgo, sin embargo, no eliminarlo.

Focusing solely on recent price movements can be tempting when aiming for quick profits. However, integrating a broader historical perspective into your analysis can improve your trading accuracy. By studying past market cycles and price patterns, you can identify enduring trends. This historical insight allows you to distinguish between short-lived anomalies and more reliable signals. In turn, this foundation helps in making more accurate predictions, not just for the immediate term but also for long-term trading strategies.Essentially, while the immediate price action is crucial for day trading, understanding the historical context can provide a deeper layer of insight, helping to avoid pitfalls and capitalize on more consistent patterns.

Focusing on short-term gains and examining past market cycles and price patterns, we can identify trends of the market, so that anyone can set stop-loss orders and manage their position sizes to protect their hard earned capital and people have to regularly review their strategies to identify and improve their trading strategies. By recognizing these steps , you can anticipate potential market reactions and make more accurate predictions.

Use of High-Quality Master Data: I ensure my data comes from reliable sources like Bloomberg, CQG, Rhitmic or Reuters to avoid biases. Regular Review and Update: I regularly review and adjust my analysis methods and models to adapt to market changes. Multi-Timeframe Analysis: By analyzing trends across different timeframes, I ensure that short-term decisions align with long-term trends. Risk Management: Strict risk management ensures that short-term gains do not lead to long-term losses.

By Focusing on Historical Data, For example taking the Price of a particular stock for the past 10 years, And Market Index maybe BSE or NSE (the opening and closing price for the past 10 years). Evaluating the Mean and Range, Calculating The Variance and Standard Deviation. Calculating beta, and Comparing the historical prices, in order to identify on the basis of past years, will it lead to long term efficiency or not.

Effective risk management is crucial for maintaining long-term success in trading. Even if you're focusing on short-term trades, it's essential to set stop-loss orders and carefully manage your position sizes. These practices protect your capital by limiting potential losses, which is vital in the volatile world of day trading. By controlling your risk, you ensure that any short-term setbacks don't wipe out your account or derail your overall trading goals. In essence, disciplined risk management allows you to survive and thrive despite the inherent unpredictability of the markets, ensuring that you stay in the game long enough to achieve consistent profitability.

I believe that risk can be minimized by making trend lines. Day trend line can be a good option, followed by hourly trend line as well. From the bottom you can enter in stock and exit from the top in the long run.

Risk management is a crucial aspect of technical analysis. It involves various strategies to minimize potential losses and protect capital. This includes setting stop-loss and take-profit orders to limit losses and secure profits. Diversification helps spread risk by investing in different assets. Position sizes are carefully calculated to ensure no single trade endangers the entire portfolio. Additionally, risk-reward ratios are analyzed to ensure that potential gains justify the risks.

Focus on Position Sizing in order to determine the amount of capital to allocate to a particular trade based on the total portfolio size and the risk level, with the help of Fixed Fractional Position Sizing in order to risk a fixed percentage of the portfolio on each trade, or use Kelly Criterion in order to determine the optimal size of a series of bets to maximise the logarithm of wealth.

No se puede operar una estrategia de trading si no se cuenta con un manejo claro del riesgo. Primero, definir y respetar en todo momento el stop loss. Si no se puede definir un stop loss a partir de la gráfica, hay que hacerlo de acuerdo al porcentaje que está dispuesto a perder. Si la posición conlleva más riesgo, por ejemplo un instrumento apalancado, hay que hacer la inversión en un tamaña menor.

I rely on a variety of indicators. These include trend-based indicators like moving averages, which help identify long-term trends, as well as momentum-based indicators like the RSI and MACD, which provide insights into the strength and direction of price movements. Additionally, I use volume indicators like On-Balance Volume (OBV) to verify trends through trading volume. Support and resistance levels are identified using pivot points and Fibonacci retracements, while volatility indicators such as Bollinger Bands assess the risk of price movements. By combining these diverse indicators, I gain a more comprehensive view of the market, leading to more informed trading decisions.

Es muy arriesgado operar con un solo indicador, pero es muy ineficiente operar con un exceso de indicadores. Lo mejor es contar con una combinación de indicadores que uno conozca bien (por ejemplo, RSI + medias móviles) y confirmar con velas, líneas de tendencia, etc. Ante la duda, tener una segundo set de indicadores y revisarlos en diferentes termporalidades (diaria + semanal + intradía).

Three indicators I use a copper handle formations base breakouts, and anything approaching a whole number to buy right under the whole number on my three key indicators

VWAP (Volume Weighted Average Price) is great for traders engaging in scalping because it tracks intraday trends by showing the average price of the asset, factoring in the volume of trades throughout the day. This helps spot support and resistance levels, as prices often react at these levels due to the volume gaps that occur. Simply put, if the price is above VWAP, it signals a bullish trend, while a price below suggests a bearish move might be coming. It’s smart to combine VWAP with other indicators like moving averages and RSI for a more holistic market picture and emotionless decision-making

The markets are dynamic, constantly changing, and as a trader, your technical analysis skills need to evolve accordingly. Continuous learning and adaptation are key to staying accurate and effective over the long term. It's important to stay up-to-date with the latest trading tools and techniques and to frequently review and refine your strategies. This ongoing education and flexibility enable you to adapt to changing market conditions. By doing so, you can better capitalize on short-term opportunities while ensuring your approach remains relevant and effective in the face of market evolution.

Continuous learning is essential for success in technical analysis. I regularly attend training sessions and webinars to learn new analysis techniques and strategies. Engaging with other experts and participating in professional forums allows me to benefit from the experiences and insights of others. Additionally, I regularly test new tools and software to optimize my analysis methods.

Nunca sobra aprender nuevas técnica, incluso para usar indicadores en lo que puedes llevar varios años usándolos. Siempre hay nuevas maneras de usar el RSI o de probar nuevas combinaciones de medias móviles. Ha encontrado útiles algunos videos en internet que le dan un giro a los indicadores clásicos.

Continuous learning is great, but it’s more used by people that are inconsistent and able to make money when you have have a system based on positive expectancy it repeats itself over and over and over again it takes the emotion and the thinking out of it makes it more of a business and rules based

Las formaciones clásicas del análisis técnico (triángulos, cuñas, etc) son un claro reflejo de la psicología del mercado. Aunque parezcan metodologías viejas o anticuadas, siguen funcionando a la perfección. Para entender la psicología del mercado, lean 1, 2 o 3 veces el libro "Trading in the Zone", sin duda, es el mejor libro de inversiones que he leído en mi vida.

The collective mood of the market often drives price trends, so integrating this awareness into your analysis can significantly enhance its reliability. Paying attention to market sentiment indicators, news, and social media trends that can sway trader emotions. By factoring in these psychological elements, you can make more informed decisions and improve your ability to predict market movements, even in the short term.

Considering the overall attitude of investors toward a particular security or financial market. Performing sentiment surveys, like the AAII investor sentiment survey in order to measure the mood of the investor. Using Volatility index (VIX) to measure the market volatility and expectations.

When you have a system of trading based on positive expectancy, you can compound the profits greatly. Look at the biggest green bar on your five minute chart on any stock that you like Apple Tesla Microsoft doesn’t make a difference and look to the right always goes through the whole number. Should tell you something about how to trade on the long side

Backtesting on a simulator does more harm than good, because in trading optimism or hope is never gonna work in your favour. Only real money gives a reality check. Delulu is not solulu.

Backtesting involves running your strategy on historical data to see how it would have performed in the past. This can reveal its strengths and weaknesses over various market conditions. Similarly, paper trading allows you to practice your strategy in real-time without risking real money, providing a safe environment to fine-tune your approach.These testing methods are invaluable. They give you insights into the potential longevity and reliability of your strategy, helping you refine it for sustained accuracy and effectiveness. This disciplined approach ensures that when you start trading with real capital, you do so with a well-vetted and robust strategy.

Defining the Strategy with clear rules and parameters such as moving Average periods, RSI thresholds. Using softwares such as Metatrader, Trading view, and analyse performance metrics related to volatility and risk adjusted returns.