There are now clear reasons to expect the markets to do certain things. But this is rare. So all the other times that we're just in "normal" times... Are we just trying to create something out of nothing? Looking for trading opportunities that don't exist and trying to force the logic behind them? I would really laugh at anyone who still believes in Technical Analysis after this.
TA does not explain why something is happening in the markets. Seriously, if I want to know why something is happening in the market or an explanation for such...I listen / watch real-time market news. wrbtrader
Yes, put a simple EMA moving average strategy intraday. Market has huge trending moves that you can make loads on even if you enter late. I wouldn't say technicals ever explain anything as such, just ways to enter and exit
The truth is that automated trading algo's are trading differentials of asset prices (spreads). These algo's are using simple convergence/divergence and trend prediction models for much of this. Farmerjohn, you can trade the difference of asset prices using technicals. Momentum, vol, levels, etc. A lot of the predictive modeling is based on predicting and trading ratios and differentials of assets. This means that the technicals are always involved, it's just not obvious to people who don't understand intermarket relationships that they are involved. This could be for example the differential of a T-bond ETF vs a corp debt ETF, called a credit spread (not the options kind). Another example would be trading XLF/XLK or something like long gold and short silver, i.e. a metals ratio.
One time this old rich guy at a strip club was drunk and trying to tell me about metals ratios and how easy it was to trade. I was too stubborn to listen to him and told him I'd rather flip houses lol. He even gave me his number and was practically begging to teach me how to do it. Oh well. Lost opportunity I suppose.
Wouldn't you have to understand what technical's are before you know they don't matter? And I know you don't know much about technical's, because even something as basic as two EMA's on your chart would clearly show sellers are more in control than buyers on a larger time frame (was more of an advantage earlier on as now the probabilities of short covering rallies and multi-day up moves has increased some), none the less it's still the case.