Do TA is a bullshit ?

Discussion in 'Technical Analysis' started by TurtleLearner, May 31, 2018.

  1. deaddog

    deaddog

    TA is a trading tool.

    Saying TA doesn't work is like saying a hammer doesn't work.

    Don't blame your tools.
     
    #31     Jun 2, 2018
    speedo, comagnum and Pekelo like this.
  2. We need TA to make sense of the Casino. How else would programmed trading exit or enter? o_O
     
    #32     Jun 2, 2018
    comagnum and Pekelo like this.
  3. Pekelo

    Pekelo

    You realize they are. End of story... They are sure not fundamental indicators. :)
     
    #33     Jun 2, 2018
  4. Palindrome

    Palindrome

    In my opinion and interpretation:

    Technical analysis is a lens, to see through, to attempt to understand money flows as they interact with an instrument that moves.

    Most new traders look for indicators, to make decisions for them. In my opinion you need to use the "indicators" as measures of movements, not as simply decision making rules.

    For Example:
    I use very basic indicators, RSI, DI, ADX to measure the speed in which markets move, which then I interpret, and make decisions. Through the thousands of hours of studying the market with those lens', I'm able to understand when markets turn or want to continue.

    Lastly... In my opinion, TA works better on longer term time frames than shorter term time frames, but I am biased because those are the time frames I trade. Again, if you are new to studying markets... Start with longer term charts, as you get better you can trade on shorter term charts.
     
    #34     Jun 2, 2018
  5. SunTrader

    SunTrader

    IMO when it comes to TA and traders failing to get much, if anything out of it, it is because they wrongly prioritize price over time or even just outright ignore the time component altogether.

    But then I'm glad they don't. I know I can't beat Goldy but a trader using lagging MA's and bunch of other squiggly lines ... like my chances everytime!!!
     
    #35     Jun 2, 2018
  6. Mnewton

    Mnewton

    A lot of algos work off technical analysis so when certain prices are hit then there is buying or selling.
    If you don't know some TA then you have no idea what is going on and you will lose all your $$$$.
    They work off pivots, retracements and other stuff. They follow head and shoulders, cup with handle and pendants. Good luck
     
    #36     Jun 2, 2018
  7. Palindrome

    Palindrome

    If you look through this most basic lens, and this is before even trying to understand technical analysis you might become enlightened....

    Market ecosystem is designed from these basic concepts:

    • Large Traders/institutions Need Volume to operate

    • Brokers need large volume to get paid and keep the lights on at the exchanges etc

    • Markets need VIG, small traders so exchanges and large traders can manipulate them and take their money

    Markets don't seek price... MARKETS SEEK VOLUME

    Watch how the market flows towards levels to shake week hands out and let strong hands come in (retests of extremes). Brokers get paid heavy at these levels, because of the volume...Small traders get shaken out at these levels (VIG), and large traders can enter/exit at these locations.

    The market price is attracted to these levels, the trick is to understand what levels are important because that's where the big guys get in, or get out. Those levels are also the levels the market TARGETS, ie Magnet effect pulling the market to these levels so that those three bullet points happen.

    This is fundamentally how I view markets, and my TA helps me find these important levels where everyone can get paid that matters, and the losers pay their dues.

    This is 8000 hours of wisdom... for free :)
     
    #37     Jun 2, 2018
    TurtleLearner likes this.
  8. #38     Jun 3, 2018
  9. So understanding of volume with basic TA(SR,Trendline,Retracement......) without fancy indicator is more likely to be useful if you use it the right way , Thanks for this 8000 hours advice
     
    #39     Jun 3, 2018
  10. Thanks for the advice , and as it's a lens I hope that I would'nt use convergent lens to treat divergent problem and the reverse too .....

    And for the longer time frame , do you keep position on overnight session as it's longer or another approach (as this question is off topic , feel free to answer or not ;I will certainly understand)
     
    #40     Jun 3, 2018