Guys, a question to get the brain cells ticking.
For scalpers : when you see an opportunity for quick entry on short TF charts, who do you think is quicker. You or a multi million dollar HFT colocated at the exchange?
Well, nothing smells ( at least therotically) of profits as much as stat arb. How many human arbitrageurs do you think make a comfortable living these days?
All I am saying in this thread is that the market structure and participants have changed so much that classical TA may not really help you. Its no use trying to trade a market the way it looked 10 years ago.
If enough people are interested we can look at truly profitable ideas based on TA like concepts (Price and volume). Examples of this being anticpating increases in IV and congestion breakout failures which will continue to work in the foreseeable future. The reason behind both of these still working is ..... Ka ching ! Thats right , if a large number of liquidity consuming HFTs start playing then ...... Yummy, tons of money if you understand this concept. BTW, HFTs dont give a fc*k about your S&R or MAs but they do love.... well thats for another time. BTW, you should really try understanding these new trading idiot boxes since they constitue over 50% of volume in many markets.
BTW, for people who love TA please do yourselves a favor and go visit the nearest trading floor. You will see why classical TA wont cut it for the most part.
Food for thought - very few large trading firms lose money these days - wonder why