Markets/Instruments that better obey to TA

[Ivano]

I think is fair to admit that for different reasons there are markets/instruments that better obey to Technical Analysis than others, I mean:
A) There are more likelihoods that volume well represents the effective buy and sell
B) Support, resistance, trend lines, flags and wedges are indicator of high statistical predictability

Which of the following 5 options would be more positive correlated to the two points A and B mentioned above?

1) ES/MES SP500 future
2) IPO
3) Small cap US securities not pumped and dumped
4) Markets with much less capitalization than US market
5) EUR/USD

Please feel free to add another option if statistically significant, or even to argue if one of the 5 should not be in the list. Thanks

 

[wrbtrader]

Treasury Futures
Eurex/Euronext Index Derivatives (futures)
Eurex/Euronext Fixed Income Derivatives (futures)
Forex Markets
Energy Futures
Hang Seng Index Futures

Bonne année et bonne santé

wrbtrader

 

[El Trado]

I think is fair to admit that for different reasons there are markets/instruments that better obey to Technical Analysis than others, I mean:
A) There are more likelihoods that volume well represents the effective buy and sell
B) Support, resistance, trend lines, flags and wedges are indicator of high statistical predictability

Which of the following 5 options would be more positive correlated to the two points A and B mentioned above?

1) ES/MES SP500 future
2) IPO
3) Small cap US securities not pumped and dumped
4) Markets with much less capitalization than US market
5) EUR/USD

Please feel free to add another option if statistically significant, or even to argue if one of the 5 should not be in the list. Thanks

If this was the case, there would be algos exploiting it already

 

[wrbtrader]

If this was the case, there would be algos exploiting it already

They do.

wrbtrader

 

[Handle123]

I think is fair to admit that for different reasons there are markets/instruments that better obey to Technical Analysis than others, I mean:
A) There are more likelihoods that volume well represents the effective buy and sell
B) Support, resistance, trend lines, flags and wedges are indicator of high statistical predictability

Which of the following 5 options would be more positive correlated to the two points A and B mentioned above?

1) ES/MES SP500 future
2) IPO
3) Small cap US securities not pumped and dumped
4) Markets with much less capitalization than US market
5) EUR/USD

Please feel free to add another option if statistically significant, or even to argue if one of the 5 should not be in the list. Thanks

I disagree, all symbols, markets, exchanges around the world work well regarding TA, comes down to your experience, testing and trading.

 

[proftradingjourney]

I disagree, all symbols, markets, exchanges around the world work well regarding TA, comes down to your experience, testing and trading.

Best explanation I've seen of someone who even believes in TA is that in stocks for ex: The big companies, mega-caps, TA doesn't work too well and price is more random because there are so many eyeballs on the stock, including every analyst you can think of covering it, and therefore there's so much interest in the stock that the pricing becomes more efficient and subsequently random. So, there's less of an edge trading these names.

Whereas with small and mid-cap stocks, these names are less known and price discovery is still taking place so patterns seen on these names are not random, the correct price is being discovered which gives you a higher expectancy trading it.

Want to hear others thoughts on this. Makes sense to me, and seems logical, but I feel it's too simplistic.

 

[wrbtrader]

Best explanation I've seen of someone who even believes in TA is that in stocks for ex: The big companies, mega-caps, TA doesn't work too well and price is more random because there are so many eyeballs on the stock, including every analyst you can think of covering it, and therefore there's so much interest in the stock that the pricing becomes more efficient and subsequently random. So, there's less of an edge trading these names.

Whereas with small and mid-cap stocks, these names are less known and price discovery is still taking place so patterns seen on these names are not random, the correct price is being discovered which gives you a higher expectancy trading it.

Want to hear others thoughts on this. Makes sense to me, and seems logical, but I feel it's too simplistic.

This theory someone told you doesn't just apply to stocks. I will leave it there (no further discussion).

wrbtrader