Is Technical Analysis a joke??

Discussion in 'Technical Analysis' started by Jdesey, Apr 22, 2020.

  1. A fact is a fact. If some see it "differently", that's their error.
     
    #31     Apr 22, 2020
    birdman, never2old and NQurious like this.
  2. Sorry to disappoint you, but this is wrong. Believing it is a good way to lose all your money; the crash of the past few weeks illustrates this with 100% clarity.

    https://en.wikipedia.org/wiki/Gambler's_fallacy
     
    #32     Apr 22, 2020
    Nobert and ironchef like this.
  3. maxinger

    maxinger

    it depends on individual.
    Some feels it is a joke. then it is a joke.

    unfortunately many people think TA is a holy grail.
    They draw thousands of support and resistance lines,
    they draw trend lines here and there,
    they fibo here and there and everywhere,
    they added thousands of oscillators,
    they use multiple envelopes ....
     
    #33     Apr 22, 2020
  4. Real Money

    Real Money

    Couple things on this. The first is that you are competing with them whether you like it or not. The action on longer timeframes is still just a meta outcome of HFT and algo trading.

    Competing against the best quants in the world is the greatest challenge there is.

    These guys are not perfect. They make mistakes. The algo's are good but that doesn't mean they can't get caught offside. The treasury market is a great example of this.

    No matter what algos and trading machines and HFT they have, nobody is right all the time.
     
    #34     Apr 22, 2020
    volpri likes this.
  5. NQurious

    NQurious

     
    #35     Apr 22, 2020
    speedo likes this.
  6. RockNar

    RockNar

    Everyone is different. The abilities you have other may lack and those tools can help bring them up to par.
    A tools ability depends upon its beholder.
     
    #36     Apr 22, 2020
    volpri likes this.
  7. ironchef

    ironchef

    Glad I was wrong and thanks for providing proof. I always appreciate folks that corrected me when I was wrong. Now I have homework to do to reexamine my results.

    Have a good day.
     
    #37     Apr 22, 2020
    BlueWaterSailor likes this.
  8. KCalhoun

    KCalhoun

    As an award-winning #1 rated readers choice columnist for TASC magazine, and former statistician for Ford, here's my .02:

    Price action, trading ranges and risk management is more important than any squiggly lines on charts.

    The math is far more important than charts, x100 when it comes to making money trading.

    Knowing trading ranges/ATR and trading with position sizing is essential.

    Using 50 100 200 sma on daily charts is useful to know what the herd is following.

    Candle patterns esp hammers work often.

    In training thousands during 21 years, where traders screw up is:

    You trade choppy narrow range charts that aren't clean, wide range.... charts under $10 are for morons

    You undertrade, waiting for a few great looking breakouts or pivots and still lose

    Your stops are way too costly, mine are almost always under $70 max


    So much more, there's a lot of fixes
     
    Last edited: Apr 23, 2020
    #38     Apr 22, 2020
    David's faith and never2old like this.
  9. Ditto here; it's always been one of my most productive attitudes. :)

    One of the first things I've learned in studying data science is just how many crazy biases we humans have. Our brains are amazing rationalizing mechanisms... note I didn't say "rational", though.

    https://www.visualcapitalist.com/every-single-cognitive-bias/
     
    #39     Apr 22, 2020
  10. Technical analysis is the most popular tool used and applicable to stocks, indices, commodities, futures, cryptocurrencies or any tradable instrument where the price is influenced by the forces of supply and demand.
     
    #40     Apr 22, 2020