Yea in that situation it would work (IF you waited for confirmation - which I had presumed!) but TA does not stop working in a bullmarket ~ situational awareness will keep you out of any short that is not a scalp until a reversal is in sight. Basically though, everyone is a genius in a bullmarket. Look at the moneky run of the tec bubble and how fast they were all wiped out when the mania came to an end. If one is ok with waiting around for exceptional news and event days to trade then fine, but for every day no matter what the news trading, you need something more than luck, because luck is a case of how long will it last. I think you have been misled and never really learned to trade, which of course does not mean you cant turn a profit and get lucky, its just you have never learned this as a skill.
If you wait for confirmation, you are often too late. Even the PA junkies will admit this, i think? My point is that you DO NOT NEED TA to be profitable. In fact, charts can mislead you very easily due to only showing the past. To be succesful intraday trading without a real edge, you need to anticipate moves, not react to them and use very strong money management--- surf
No, your point is and long has been TA pollutes the site luring noobs to their certain distruction, thats why you shout it down so hard remember to save the noobs. There are plenty of things we dont need, we choose what works for us, I need and do anticipate moves with ta, without ta I would be waiting for the strongest confirmations because nothing can lead you astray like the news..
The PA junkies I know, including me, tend to trade in one of two ways: 1. Anticipate a level will hold and position as price reaches that level with a either very tight stop or a wider stop that allows for a possible break-even breakout/pullback exit in case the level doesn't hold. This method utilizes limit orders to enter. 2. Enter a trade in the direction of the price action signal upon confirmation of strength (long) or weakness (short) in the direction of the signal. This method utilizes stop orders or market orders to enter. If you trade intraday without a real edge, strong money management is your only hope of avoiding total disaster. BTW, I agree that you don't need TA to be profitable.
Yes, TA is the wrong road for everyone I have ever known in the real world. Just one man's experience-- take it as you may--- if TA actually works for you and you not just trying and trying without results based on the Price Action gurus words-- then by all means keep doing it. However, I think the truth in the matter is self evident that you really are not as succesful using TA, but simply don't know what else to do. Hence my suggestion to prop firms to learn real edge-- surf
A line chart is the wrong road for me and every one I have ever known in real life, I dont go on a 7 thousand post crusade to convince an entire forum that my expereince is the absolute The joy and the dollar of the markets is diversity.
I think you can make money using technical analysis. It's no different from fundamental analysis. It takes intuition to know which lines are important and which ones aren't. I don't trade technicals, but i have seen people who do.