Yeah...I have a few buddies heavy into the random theory and they seem confused every time I'm able to identify accurately which charts were generated via random prices and which charts were the charts of real stocks, futures or forex.
My point is that there's more to the price action than just double tops/bottoms, swing points, reaction points, flags, breakouts or whatever. Simply, these are not trade signals all by themselves. They are just price areas of interest that should prompt a trader to take a closer look. In contrast, the trade signals is what's occurring within those patterns you and I have mentioned and that's something my buddies can't understand...including most academics.
That's why they had poor trading results because they think a double bottom is a Long signal all by itself. It's not. Thus, there's more to TA than that and the few that realize such will be the ones that benefit from using TA.
P.S. I can see the difference between random price charts versus real charts when the data is presented as candlestick charts or bar charts. Yet, I can not see the difference when the data is presented as line charts, dotted charts or charts where the intervals have been so compressed that you can't determine if it's candlestick charts or bar charts...charts typically not used by those that are traders.
Mark
