TA education

Discussion in 'Technical Analysis' started by cortez27, Nov 14, 2007.

  1. 'There are many who claim so, with little evidence. In reality, it is believed that most trader use TA and most traders lose their money. There is likely an interesting correlation here.'

    Coorelation does not mean causal relationship as you of course know. Traders can think that they use TA but really trade by fancy, without discipline, without proper MM (too risky), etc... There are too many reasons for failure.

    'One more question, just logical quiz. Can you prove that TA did not work?
    This was the subject of earlier threads and this was dialogued to death. A study is posted, and TAphiles do all sorts of opinion dances or insults, without offering effective counter proof'

    Any profitable trading strategy which does not use fundamental data is counter proof. Agree?
     
    #31     Nov 19, 2007
  2. I did not say TA does not work. I meant that you can greatly improve the probability of your trades working out by understanding the underlying price action of a given technical setup.

    Ever wonder why some "cup and handle" formations work beautifully and others fail? Looks like a coin flip right....well, its no coincidence. The ones that work show price action that will eventually lead to it working and vice versa. Its up to the trader to understand and read the particular situation correctly. If I can indentify a chart setup, a certain classical pattern or even a pattern that just you have seen over and over again (not one mentioned it "books"), this can put you in a place to anticipate what will come next.

    RCan, I have made a bundle of money trading off TA (and the corresponding PA) and I know of at least 2 others personally that have as well. Forget all the studies you read about, if you do the work you will be able to see it for yourself.


     
    #32     Nov 19, 2007
  3. If you're interested in price action, take a look at dbphoenix' book: http://www.trade2win.com/boards/showpost.php?p=313957

    LC
     
    #33     Nov 19, 2007
  4. rcanfiel,

    There isn’t any need to a condescending patronizing attitude toward posters. Learner2007 has a right to his opinion just as you do. Just as in real life there are many different opinions out there and many different methodologies. Just because TA hasn’t worked for you is no reason to belittle others.

    You are young and most definitely haven’t personally tested all forms of TA in order to be considered an expert on the field. Typical TA offers limited consistency to trading but there are newer inroads being made daily.

    I will agree with you that combining methodologies doesn’t add any multiplied value. Anytime you add inconsistency to inconsistency you will further increase the inconsistency. That is a simple law of numbers.

    50% accuracy plus 50% accuracy = 25% accuracy

    But remember that (Technically) viewing Price Action and (Analyzing) the results will give you an entirely different set of parameters and facts than any stand alone typical TA readily accepted today. This is the point that people are trying to get you to see that you aren’t open to.

    The goal is to find the consistencies in Price Action to lay the groundwork for consistent profitability. Once one figures out that there actually is consistent movement embedded in Price Action then the process begins building confidence in trading it.

    There is proof that some TA works but you have to prove it to yourself. Anyone telling you it works, including me, just like you saying it doesn’t work are both futile and worthless statements. Unless you are open to applying specific and unfamiliar forms of TA, making a blanket statement that it is ALL worthless is wreak less.

    Traders, across the board, loose money because of many situations; one of those is inconsistency of trading environments using inconsistent TA. Traders loose money due to lack of patience. Traders loose money because of poor money management. Traders loose money because of lack of information. I could go on but I think you get the point. Traders have way more going against them than they have going for them. Traders are akin to a salmon swimming upstream in a bear filled woods.

    I’m amazed each day I sit in front of the screen to trade. I sit here with an open mind ready to profit from price’s consistencies but also open to the new things I learn from that consistency.

    The day your mind closes to the potential of innovation and discovery is the day your brain begins to shrivel up and die.
     
    #34     Nov 19, 2007
  5. yes, agree 100%

    hey, rcanfiel, listen to smart guy aka ProfLogic! It's much more useful than discuss whether something work/do not work.
     
    #35     Nov 19, 2007


  6. >ProfLogic

    When I posted my message here I failed to recall the name
    rcanfiel. For ages he has popped up on various message
    boards just calling people names, using vulgar language,
    and, from what many see, is just looking for attention.

    I mistakenly wasted my time.

    learner
     
    #36     Nov 19, 2007
  7. Rcanfiel is just a crybaby who wants to rip on TA and everything else under the sun for whatever reason. I am not saying he's a failed trader, because I have no idea about the guy's personal life...

    But I am just wondering why the venom towards TA, Rcanfiel?

    Seriously?

    I believe that if someone makes money using TA that is enough empirical evidence to support the efficacy of TA. Whether or not anyone else makes money using TA doesn't affect the person who makes money's personal knowledge that TA does work.

    Blanket statements rarely, if ever apply to anything in life. I am sure there are people who make money using Astrological Analysis- I don't believe it works, personally...but I would have a hard time convincing someone who makes money using it that it doesn't work.

    And I am surely not going to go ripping on anyone and everyone who supports it. Not my business. I will offer an opinion, but I am not going to call anyone stupid or ignorant over something so opinion based.
     
    #37     Nov 19, 2007
  8. Ive made close to 1 million just daytrading (yes, I know this isnt that much but even still, its something) and my approach is entirely technical. I use ZERO fundamentals, everything I do is based on the chart and the way price is moving.

    Anyone who says TA is pure crap without doing their own due dilligence is exactly the type of person who wont succeed at trading.
     
    #38     Nov 19, 2007
  9. you got that right, uncle brother
     
    #39     Nov 19, 2007
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    #40     Nov 19, 2007