Does Technical Analysis Work?

[murray t turtle]

It depends who is doing the analysis. I use 4 different techniques of TA and only take a position if 2 or more line up together.

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A big problem with TA; Bright DayTrading Co never liked 5 minute charts too long LOL .I hardly ever use them -to many comissiopns......LOL

 

[GloriaBrown]

Such a good post, I like it

 

[viruscore1]

It all works until it doesn't. Really, read it a few times. Repeat it out loud.

 

[GloriaBrown]

For calculation kind of TA like moving average, at least you can try to prove it works in history or not.
For trendline kind of TA, there is no way to prove. It is like UFO kind of stuff.

 

[easymon1]

I came across this 22 year old paper (published 1996) that said it worked with simple rules like moving averages and breakouts (worked for Dow from 1897 to 1986 and UK from 1935 to 1994). But that was 22 yrs ago. Do they still work today?

http://moving-averages.technicalanalysis.org.uk/HuDK96.pdf

Does Technical Analysis Work?

Does Art Work?

Depends on Who's Driving.

youtube.com/watch?v=Fk0V_GGa2XM

 

[easymon1]

Fresh H&S? Devious rascals'll probably take us down to about, oh, 7666.50, per the Church Lady
https://www.investopedia.com/terms/h/head-shoulders.asp

 

[easymon1]

 

[Collapse]

Does Technical Analysis Work?

Depends on TA.

"Public" TA is not working. You may check it by:

• automation
• deep understanding

"Private" TA is working (example).

 

[Bigstuff]

I find TA useful in a larger scheme of things. Fundamentals are also important to define risk.

That's right , work with the bigger picture first then fine tune.

 

[Bigstuff]

In my book there are generally two types of traders: The hunters and the farmers.

Day traders are hunters, they "hunt" for their targets each day and once get their prey, they "kill" and move on to the next. Some swing traders are like that too.

Farmers? They plant their crops and wait for the harvest. In the mean time they have to keep pruning and weeding. But they also "plant" some quick crops, "hunt" some small games allowing them to "put food on the table" while waiting for their big harvest.

So, traders trade but most investors also trade.

Take care.

Yes . . . basing you return expectations in line with your trade time frames.