Technical Analysis Logical Flaws

Discussion in 'Technical Analysis' started by MedianVelocity, Dec 13, 2013.

  1. BSAM

    BSAM

    (Hmmm...I think he was agreeing with you.)
     
    #21     Dec 14, 2013
  2. That's quite an attitude, just who the hell you think you are?
     
    #22     Dec 14, 2013
  3. Just an ordinary guy who doesn't tolerate your BS. Don't make nice here, deal with your situation in the other thread.
     
    #23     Dec 14, 2013
  4. cornix

    cornix

    You read my mind. :D
     
    #24     Dec 14, 2013
  5. Redneck

    Redneck

    Reading price on/ from a chart is considered technical analysis

    I defy you to show one example where price lied – ever

    Just one mind you

    ============

    Given the thousands of years tradings been in existence.., and untold number of traded instruments over those years - shouldn't be hard


    RN
     
    #25     Dec 15, 2013
  6. kut2k2

    kut2k2

    Price never lies but TA often misrepresents what price is saying. Otherwise we'd all be rich.

    The issue is that price doesn't speak English ... or any other human language. So a trader has to use a translator (e.g., technical indicators) or expend the 10,000 hours necessary to learn to read price directly. And unfortunately most technical indicators are like that guy at Mandela's memorial service who was faking his sign-language translations.
     
    #26     Dec 15, 2013
  7. Secret to reading price is not technical indicators but ability to comprehend multi time frame reads.
     
    #27     Dec 15, 2013
  8. dbphoenix

    dbphoenix

    If by "TA" you mean indicators, then, yes, they often misrepresent what price is saying.

    But it doesn't take anywhere near 10,000 hours to learn how to read price, particularly if the trader is new (if he's experienced, it takes much longer). If indicators take less time and/or are easier, then why do so many people spend so many years trying to come up with something useful yet still be unable to make a living?
     
    #28     Dec 15, 2013
  9. kut2k2

    kut2k2

    If you're asking why more people don't use straight lines, my guess is that they realize intuitively that price seldom moves in straight lines.

    The principle behind technical indicators makes sense on a gut level. But it's like medicine in the pre-scientific days for most technical traders, and few have what it takes to make the leap to scientific analysis. Add to that all the secrecy around advanced indicator development, something no other science has had to put up with, and the status of effective technical indicators boils down to this:

    Those who know don't say, those who say don't know.
     
    #29     Dec 15, 2013
  10. Indicator development and refinement is a lot like lab research - many wrong turns and dead ends. If you don't enjoy the process, it is easy to get discouraged and give up.
     
    #30     Dec 15, 2013