Does technical analysis works in non-trending markets?

Discussion in 'Technical Analysis' started by crgarcia, Jun 17, 2008.

  1. Sure oversold/overbought indicators may allow you to fade the market, but far away from tops/bottoms.
  2. You make the incorrect assumption that technical indicators = technical analysis.

    The best TA I know of is of the personal experience nature from watching the markets over years of time. Over time, you develop an instinct based on what you are seeing that allows you to understanding the differences between price action that is trending, vrs ranging and also corresponding volitility. This doesnt need to involve anything other than price and for some, volume.

    People get all wrapped up in fancy indicator packages because their software has them but really most people will end up finding out that had they just watched the markets and paid attention to what was happening they'd be better off than had they fiddled with indicators.

  3. Buy1Sell2


  4. all markets trend
  5. Hiya guys

    markets are trending all the time

    if they didnt we might as well just find a better paid job :p

    long experience watching the markets is pretty important

    if you are using TA and the markets are not trending much atleast you are not loosing much either unless you are changing your mind all the time.


  6. Then what's the trend in Sugar?
  7. kut2k2


    A trend is a trend is a trend.
    But the question is, will it bend?
    Will it alter its course
    through some unforeseen force
    and come to a premature end?

    -- Alec Cairncross
  8. Price leads, indicators lag. If you'd rather commit your time and energy to using stuff that is lagging the mkt rather than learning to read and understand what is leading then be my guest.

    I'm not saying indicators dont work, however one must learn HOW to use a particular indicator and that takes time in itself, by observing the markets and seeing how and what an indicator is doing and also relating it to making successful reads of the market. If you are going to go through all that trouble, you might as well just learn price (and volume too)

  9. Buy1Sell2


    The correct method is price with indicators. There is no reason not to employ the use of time tested indicators along with the price to give you the best picture. Thank you for your time.
  10. Alexis



    This is an excellent question.

    Some TA indicators work best in non trending markets, but most chartism aspects are only usefull with trends.


    #10     Jun 18, 2008