Is technical analysis less applicable to today's stock markets?

kut2k2 said:
Two problems with your reasoning here.

A) Most automatic programs are HFT. If you trade well away from that frequency, there is no competition.

B) A program is no smarter than its programmer. If your algorithm (aka trading plan) is better than their algorithm, you'll win regardless of their speed.

Trade Smarter, Not Harder
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Thank you for this reply. Totally agree with you.
 
Lloyd W. Coutee said:
Technical analysis is not applicable to today's stock market because of the advance in algorithmic trading. Before, human used technical analysis. Now, traders are competing against computers that many signals other than technical analysis, making the latter essentially useless.
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Well the way this trader looks at it, any market is either going up, down or sideways. Then you have different time frames where they can go in two directions or more at the same time. But usually the bigger time frame wins. And the markets seem to stop at old highs and lows, support and resistance. And they form trendlines which get broken. If that is T/A so be it. I just want to be on the right side of the market, buying strength and selling weakness. I've had someone tell me there's no such thing as a trend. At first it made me angry because its so obvious. But he was a good investor at an insurance company, so it made me think. I believe he couldn't measure it, so it didn't exist for him. Anyway a trend is a trend only in hindsight. All we do is get on and believe it will continue, then get out if it doesn't or just ride it. LBR used to say the surfurs were the best traders on the Pacific exchange.--Swimr
 
Cswim63 said:
Well the way this trader looks at it, any market is either going up, down or sideways. Then you have different time frames where they can go in two directions or more at the same time. But usually the bigger time frame wins. And the markets seem to stop at old highs and lows, support and resistance. And they form trendlines which get broken. If that is T/A so be it. I just want to be on the right side of the market, buying strength and selling weakness. I've had someone tell me there's no such thing as a trend. At first it made me angry because its so obvious. But he was a good investor at an insurance company, so it made me think. I believe he couldn't measure it, so it didn't exist for him. Anyway a trend is a trend only in hindsight. All we do is get on and believe it will continue, then get out if it doesn't or just ride it. LBR used to say the surfurs were the best traders on the Pacific exchange.--Swimr
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Oh yes I forgot. There's I don't know as well. You probably won't find that in your T/A textbook. Up, down, sideways, and I have no idea. The latter seems to be verboten thinking amongst the experts. Rarely do you hear the reply, "I really don't know" on CNBC. You won't be invited back.
 
qxr1011 said:
everything works fine

===Before, human used technical analysis. Now, traders are competing against computers that many signals other than technical analysis, making the latter essentially useless====

there is an old Russian proverb:

a bad dancer is impeded even by his own balls
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Cmon, you are making that up.
 
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Lloyd W. Coutee said:
Technical analysis is not applicable to today's stock market because of the advance in algorithmic trading. Before, human used technical analysis. Now, traders are competing against computers that many signals other than technical analysis, making the latter essentially useless.
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Noob.
 
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