An experienced trader can make just about anything work if they have spent enough time at dissecting price, price patterns and indicators themselves. Those who just toss out statements above to me, shows they are unable to use them and went a different way to become profitable. There is no correct way to trade, but all is based on Math and to me Math is TA, trend lines shows slopes or angles and all of us look for either bounces in one way or another. Old term "What was once Resistance is now Support", can be a chart pattern, can be Fibs, can be Elliott wave, can be a oscillator, all giving same area to buy or sell, but the kicker is when you are programming, much of it comes down to Math. Why it takes many including me so long to discover what works best is thinking trading has to be hard as so few do well. So we start making it harder, invent our own indicators, invent new chart patterns, very very few of that idea works. Take couple years and learn Price structure, what drives price to go one way or other, take measurements by the hour if you day trade of what the mean is in swing lengths, if long term, find ways through hedging to reduce risk. Back test, Back test, Back test, only way to know if what worked in past will have possibility it work into future.
Top answer i exactly believe the same. trading is about probabilities.we enter a trade because we believe that an outcome of price going my way is higher than going the other way and that is what gives us an edge in trading.
How can you talk about probabilities when nothing is properly quantified in technical analysis? Just asking.. surf
For the thousandth time: Technical analysis is not limited to reading charts. You're using the past (historical prices) as input to predict future price movement. That's TA. Intraday (or higher timeframes) data can be organized and put in tables as numbers as part of a quantitative system. I'm still waiting for your answer as to why modern markets are less predictable (according to you) than markets in the early 80s.
market trends their is a higher probability that the trend will continue.market ranges their is a higher probability that it will continue being in a range with equal buying and selling.
Care to show the numbers supporting your hypothesis? You realize you can only identify ranges and trends in the past, right?
I have been studying this stuff for 25 years- both hands on, via others, and academically-- i have never seen TA properly quantified. If I am wrong, I welcome the evidence. thanks surf