Is Technical Analysis a joke??

Jdesey said:
I am starting to finally believe that TA ain't all it's touted to be. I get solid Sup/Res numbers from some great Tech Analysis experts, this is only on the indexes as I trade QQQ and SPY,,, snd then we just slice right thru those levels. I think all the patterns of handles, flags, hanging man, cups, hammers , etc... is crap.

What all of it misses is how exactly price moves. Price moves by investor activity. there are only 4 moves, Buy / Sell / Hold / stay out (or I guess moves if we consider shorts).
So, to me predicting the future based on chart patterns of the past is like predicting the next spin of the roulette wheel based on the last X number of spins. Which does not work.

I am starting to fully believe in doing the opposite of investor sentiment. I watch the Put/call ratio, AAII survey, etc... just do the opposite.

thoughts? comments?
More...
If you bought on 2:11 pm double down for today you may have good gain. it is easy to watch classy chart. If you bought hold it and see if it gets over 23740 if not put your stop price.
Hope it helps.
 
1957may10 said:
If you bought on 2:11 pm double down for today you may have good gain. it is easy to watch classy chart. If you bought hold it and see if it gets over 23740 if not put your stop price.
Hope it helps.
More...
It crosses 23655....sucks
 
Jdesey said:
I am starting to finally believe that TA ain't all it's touted to be. I get solid Sup/Res numbers from some great Tech Analysis experts, this is only on the indexes as I trade QQQ and SPY,,, snd then we just slice right thru those levels. I think all the patterns of handles, flags, hanging man, cups, hammers , etc... is crap.

What all of it misses is how exactly price moves. Price moves by investor activity. there are only 4 moves, Buy / Sell / Hold / stay out (or I guess moves if we consider shorts).
So, to me predicting the future based on chart patterns of the past is like predicting the next spin of the roulette wheel based on the last X number of spins. Which does not work.

I am starting to fully believe in doing the opposite of investor sentiment. I watch the Put/call ratio, AAII survey, etc... just do the opposite.

thoughts? comments?
More...
The simple answer is: it is not a joke.
 
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