Why I Don't Believe in TA

Like most new traders I got my start in the markets via technical analysis. Technical analysis as defined by the study of past price movements and chart patterns. It all seemed to make perfect sense on the chart, however, when applied in real time, things did not appear as clear as the various TA proponents proclaim. Buying break outs above the 200 day simple moving average, selling touches of the upper Bollinger Band and the other easily understood TA tenants simply failed to produce the profits promised by the gurus. Surely, I must be interpreting the data wrong, right? After many years of trading and market study, I have reached the conclusion that TA makes no sense to follow and it the prime reason new traders fail at this game. Here are 4 practical reasons this is the case:
1. Hindsight bias. Charts are n......

 

When did you become a paying sponsor on ET?

 

Huh? I provide quality content. what is your function and purpose on this site? Either ad value or Please go bother someone else-- I have read over your posts, there is zero value add for anyone.

surf

 

Snippy today, did you not get enough sleep?

Just commenting because you posted a personal link and that's what paying sponsors are allowed to do.

PS Went to BLT Prime for dinner last night. It's in my hood

 

Do you see Random Walks in Patterns?

 

What is most perplexing is that, you claim to have this amazing trading method (cracked the market code as you say) and yet you start a thread to bash another approach you do not agree with. Why not just be content that you have something that works? Why do you feel this need to continue to trash technical analysis? Wouldn't you want TA traders in the mkt to be on the other side of your trades?

 

It's called 'having a one track mind', and it is very limiting to ones ability to achieve.

 

I agree,he`s got a hatchet between his eyes.

Now,to the topic.In what do you believe then?You said,you`ve been trading for a long time.

 

I believe in what I call Price Drivers. Price Drivers are what moves prior to price moving, they are what move the price. Price is the effect, not the cause. TA erroneously studies the effect, rather than the cause. hope this makes sense! surf

 

+100


haters gonna hate, players gonna play. In reference to the article he posted about himself on "Wall St. News"-- he's been using a simulator/simulated challenges for that long and still can't beat it... rofl


He doesn't even call himself a trader; he's a content provider. There's a old saying; those who can't trade, become analysts, those who can't analyze, work in operations, those who can't work in operations, do marketing, and those who can't do marketing, teach.