The key to make money in the market is not about prediction. It all about managing your risk. If you manage your risk well, that when Mr Market pays you your due.
Technical analysis is just one tool to pick potential stocks out of the many. The real money is how well you manage your risk on that particular stock you pick.
Shameless plug. I recently did a "Show HN: Weekly Charts of Strong Stocks and ETFs (https://weeklycharts.org)", which do the same thing like technical analysis. Its main purpose is to just show you potential stocks that need attention.
The concept is momentum trading or trending following strategy. It was very popular in the 70s and 80s. Richard Dennis, the prince of pit, his famous turtle trading methodology is also one of them. And many market wizards, like Ed Seykota and others, during that period also employed this concept.
Trending following strategy will work, but for a while. There is a season for it.
My idea behind weeklycharts.org is not to "get rich fast". It is to know the market. And to know who is trending now?
For example, I know that "Coinbase" and "Tesla" are trending now. Or Semiconductor, software and auto market is trending now. And it up to you to do your next step. Check it up, use fundamental strategy, or Darvas' box theory, or Richard Dennis' turtle strategy or any counter-trend strategy.
>Neat project with a nice minimal aesthetic and fast performance. Thanks for sharing.
Thanks!
>But the repo does not seem to have the shell scripts.
I will put up the code after this "Show HN". Actually, I do not know which license to use. Or what the implication in the future.
>What is the statistical definition of a strong stock?
The statistical definition of strong stock is percentage of rate of change of the stock closing price.
> And which chapter or part of the book specifically inspired you?
Chapter 4: "Developing the Box Theory". Mr Darvas finally found a trading method that work and made him money. A lot of traders were not able to reach this stage.
> Actually, I do not know which license to use. Or what the implication in the future.
GPL should be fine. You can always change the license for later versions.
How do you overcome subjectivity in identifying the box? Do you interpret price action differently based on environmental factors? Is there a risk of identifying a false breakout of the box?
Technical analysis is just one tool to pick potential stocks out of the many. The real money is how well you manage your risk on that particular stock you pick.
Shameless plug. I recently did a "Show HN: Weekly Charts of Strong Stocks and ETFs (https://weeklycharts.org)", which do the same thing like technical analysis. Its main purpose is to just show you potential stocks that need attention.
The hard work is risk management.