You're saying that if I'm using a chart to look for breakouts and I trade such without any automation or mechanical alerts...its not technical analysis regardless if the breakout can be coded or not ??? Another way to look at it, discretionary traders (no automation) using chart analysis are not TA users ???
There is subjective TA and objective TA. Art vs Science. objective TA has been proven to add little to no value subjective TA can't be defined as it's an Art "chart reading" so maybe it works for some but obviously sporadically as evidence is sparse and anecdotal.
Based upon the "symmetric philsophy of history" (Danto, Columbia) the Scientific Method is applied (to extract trend segments of profits by momentary signals in only the Present) to the leading indicator of Price (namely volume) using a Relative Data Base Management System (which establishes 5 integrated Orders Of Events) based upon an algorithm comprised of two like kind Hypotheses comprizing a complete set where the Parametric Measures are binary vectors in the finite mathematics of the market (logic theory in Boolean Algebra). The appication applies in any market at any time where there is sufficient liquidity; the result happens exclusive of any noise, anomalies or any flaws. Comment: the submission rule is unclear to me. Secondly, TA fits into a larger routine as the second part of four parts. This makes TA a tool where data is shaped for the tool's use. Markets work because of the the context: infinitely small contributions of a very large group of participants. The huge values involved assure that human nature, created over the existence of civilization, is invarariant relative to the extraction of profit segments using the briefest of momentarty leading signals in only the Present. In markets, the control rests with the minority. As you judge my contribution(s) you will find that they are a small part of the minority. Trading is not a competition of any sort. The huge markets continually make offers. TA is better used to allow the full extraction of the offer. Participation is only limited by personal resourses. The less limited do not work for others.
Problem with TA is that it provides an avenue for more searching for the ultimate: http://www.youtube.com/watch?v=san61qTwWsU http://www.youtube.com/watch?v=FuZq_revDVo&feature=relmfu TA isn't necessary, its a distraction: KISS Chart analysis is OK, but not the multitude of indicators provided by virtually every broker.
Depends. If you're able to tell why you entered a position, you're using TA, as you're then following an algorithm. If you enter just out of a gut feeling, you don't use TA.
everything is cool until you start seeing patterns in randomness, like the guy at the roulette table who thinks black is starting to trend. But now if you are taliking about how people at the table will bet, that's a whole nuther thing. Difficult to use TA to predict what the next spin will be, but fairly easy to use TA to predict what people will do. Since they always do they same thing over and over again. Use it, just don't be part of it.
There's either a breakout or no breakout. Thus, if someone is entering on a breakout...it's obviously not "gut feeling". Therefore, I will assume any one using chart analysis to look for a breakout price action is using TA. Thus, using "gut feeling" implies there's no setup and/or no specific rules being used.
If you look into chaos theory and the theories that will be developed in the future to deal with turbulence and other "chaotic" things it's obvious there is actually no such thing as random in any system. It is likely that there are trends on a roulette table but humans are not smart and advanced enough to understand their patterns and cycles and the mathematical rules that determine them.