A question to people that don't "believe" in TA

Quote from Thunderdog:

I agree. Using past price action (and/or volume and/or breadth, etc.) in any way to arrive at trading decisions in the present is TA. It does not matter how you do it. The how is simply a matter of form.
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That assertion is ridiculous. The moment a trade happens it is "in the past". Under your definition, noone would know the price of the market without being a "technical analyst". The common and classical definition of "technical analysis" obviously refers to the "chartist". Just look at the software programs labeling themselves as "technical analysis" packages.

-segv
 
Quote from optioncoach:

Can you really equate what a market maker does with someone trading intraday? Your profit mainly is locking in the spread. I think the questions posed are more towards non-market makers. I would not expect any market maker to use TA or FA nor have I heard any MM claiming to when making a market.
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They are trading aren't they? Their timeframe is less than a day isn't it? What do you mean by intraday trader? Someone that has a directional bias?
 
The intent of the original post I believe was not at market makers. We all know the advantages and ability to make money they have simply from making a market with a spread. I am sure they can take directional bets at times but their income is mainly from making a market. The thread has gotten long and I realize many have lost sight of what the original poster was asking.




Quote from DynamicReplic8r:

They are trading aren't they? Their timeframe is less than a day isn't it? What do you mean by intraday trader? Someone that has a directional bias?
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Quote from optioncoach:

Can you really equate what a market maker does with someone trading intraday? Your profit mainly is locking in the spread. I think the questions posed are more towards non-market makers. I would not expect any market maker to use TA or FA nor have I heard any MM claiming to when making a market.
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As a comparision against someone punting stocks or futures intraday? No, not really. I replied because I thought that the posters universe of "intraday" was particularly narrow, and I wanted them to know that the price action they base their decisions on intraday is a very complex creature. And of course, the poster and I are inevitably traders with one another when I trade the underlying (in the macro sense). I should note also that a significant portion of my profits is earned from theta, and still another portion from sigma events. It can be hard in many markets to "earn the spread".

PS: Coach, I do follow your credit spread thread (that rhymes!). Thanks for sharing your intelligent speculation.

-segv
 
Thanks! My comments were mainly to stick to the world that I believe the OP was focusing on. I know many arbitrageurs and market makers trade second by second on the price spread or discrepencies and also take some positional bias but you guys are way above the average retail and prop trader lol. For example, you or your brethern are the ones screwing me on the SPX spreads :D

I am also fascnitated by the discussions that spring from the use of the word TA and therefore wonder what stigma attaches and the basis for those feelings.

My honest feelings are that whatever makes you money is the tool you stick with no matter what it is called.

P.S.s tone is hard to read from someone's written conversation so let me state mine. I am not taking a side or trying to argue but simply engage in a discussion from the intelligent varied traders here. So I am not trying to prove anything right or wrong but hear your honest opinions and sorry if that is not the tone that comes across.


Quote from segv:

As a comparision against someone punting stocks or futures intraday? No, not really. I replied because I thought that the posters universe of "intraday" was particularly narrow, and I wanted them to know that the price action they base their decisions on intraday is a very complex creature. And of course, the poster and I are inevitably traders with one another when I trade the underlying (in the macro sense). I should note also that a significant portion of my profits is earned from theta, and still another portion from sigma events. It can be hard in many markets to "earn the spread".

PS: Coach, I do follow your credit spread thread (that rhymes!). Thanks for sharing your intelligent speculation.

-segv
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Quote from segv:

That assertion is ridiculous. The moment a trade happens it is "in the past". Under your definition, noone would know the price of the market without being a "technical analyst". The common and classical definition of "technical analysis" obviously refers to the "chartist". Just look at the software programs labeling themselves as "technical analysis" packages.

-segv
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Charts are a subset of TA. TA is not necessarily limited to charts. But don't take my word for it. In his book Investments (Second Edition), written by William F. Sharpe (it was a textbook I used when I did my MBA over 20 years ago), he quoted Felix Rosenfeld, ed., The Evaluation of Ordinary Shares, a summary of the proceedings of the 8th Congress of the European Federation of Financial Analysts Societies (Paris: Dunod, 1975), 297:

"Technical analysis is the study of the internal stock exchange information as such. The word 'technical' implies a study of the market itself and not of those external factors which are reflected in the market...[A]ll the relevant factors, whatever they may be, can be reduced to the volume of the stock exchange transactions and the level of share prices; or more generally, to the sum of the statistical information produced by the market."
 
Quote from RedManPlus:

APPLE DECLARES WAR ON FRANCE

High level talks are underway... and I predict that France surrenders by 16:00

rm+

:cool: :cool: :cool:
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What was Apple's core issue?
 
Here's another context for TA:

Far, far, far more people believe in astrology than TA...
Maybe globally 100 times as many people...
But most rational people understand that astrology is complete b*llshit.

People are not really addicted to TA...
But rather they cannot let go of the idea...
That there is "easy money" to be made in the financial markets...
** By people with very marginal understanding of markets and very limited talent/experience **.

There is no arguement one can use...
Against astrology, TA, or "free lunch" beliefs.

Some people just to not think logically...
And elevate denial to High Art.

rm+

:cool: :cool: :cool:
 
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