Is TA for ReTArds?

[cgtrader]

Answer me this:

I've heard that some technical traders will throw out every single fundamental indicator or event(such as a terrorist attack) and just focus on a technical indicator for trade entry/exit.

So if the White House is burning, and oil is hitting $500/barrel, you are going to buy the S&Ps when they show an oversold indicator?




P.S. Thread title was not meant to insult anyone only to spur discussion.

 

[giles117]

Do all TA's use an oversold indicator???

 

[ProfitTakgFool]

Technical, fundamental, economic, statistical, solar, lunar, et al...analysis, is only as good as the analyst.

Quote from cgtrader:

Answer me this:

I've heard that some technical traders will throw out every single fundamental indicator or event(such as a terrorist attack) and just focus on a technical indicator for trade entry/exit.

So if the White House is burning, and oil is hitting $500/barrel, you are going to buy the S&Ps when they show an oversold indicator?




P.S. Thread title was not meant to insult anyone only to spur discussion.

 

[giles117]

Quote from ProfitTakgFool:

Technical, fundamental, economic, statistical, solar, lunar, et al...analysis, is only as good as the analyst.

Exactly the point of my question.

 

[El OchoCinco]

Quote from cgtrader:

Answer me this:

I've heard that some technical traders will throw out every single fundamental indicator or event(such as a terrorist attack) and just focus on a technical indicator for trade entry/exit.

So if the White House is burning, and oil is hitting $500/barrel, you are going to buy the S&Ps when they show an oversold indicator?


P.S. Thread title was not meant to insult anyone only to spur discussion.

Do you mean to tell me that major events will happen in the world and the price of the market will NOT reflect that at all? If shit hits the fans, it is reflected in the price so even if you ignore fundamental factors, they are still reflected in the prices. If the White House is burning and oil is hitting $500 do you think the market is not going to react to that?



Whatever you use to analyze the markets it will be reflected in the prices.

Moreover you make an assumption as to time-frame. For a intraday trader using purely technical indicators, general fundamentals are meaningless given the time frame for the most part. If fundamental news is released the trader will see it in the price action.

Moreover you forget that the fundamentals are irrelvant when compared to market reaction to those fundamentals. I am sure you have seen recently where bad news hits and the market rallies and vice versa.

 

[oddiduro]

Quote from cgtrader:

Answer me this:

I've heard that some technical traders will throw out every single fundamental indicator or event(such as a terrorist attack) and just focus on a technical indicator for trade entry/exit.

So if the White House is burning, and oil is hitting $500/barrel, you are going to buy the S&Ps when they show an oversold indicator?




P.S. Thread title was not meant to insult anyone only to spur discussion.

Charts, if you can read them, never lie. Funnymentals almost always lie.

If the white house is burning and oil is 500 a barrel, and a higher low is made on strong volume, then I will definitely make some money. Either long, or short on the failure of the bounce, I will make some money.

Best Regards
Oddi

 

[giles117]

Quote from optioncoach:

Do you mean to tell me that major events will happen in the world and the price of the market will NOT reflect that at all?

I'll piggyback and take it further....

Thursday, the YM was on a downtrend near the end of the day. I noted this and took a short position because the indicators said Sell. Call it lucky or not, I enjoyed that nice plunge Friday.

Price action will dictate. Even when 9/11 hit, there was bearish sentiment abounding, going back to the beginning of august that year... 9/11 Exacerbated that sentiment.....