New study says: Technical Analysis is garbage

[TraderZones]

you gotta love the reactions from the TA aficianados. No amount of proof that TA is useless will sway belief...

90+% of traders lose money. probably 90+% of them use TA. Connect the dots... Do the math...

Unfortunately, many also rant and rave at anyone who dare says that Price Action is not TA. They can be "right" or they can learn to trade.

 

[bwolinsky]

If technical analysis doesn't work, prove why I have 4 top 10 most profitable limit order scripts, and 2 top 10 wl score market order scripts that are over two years old, some 6 now. Top it all off with a c2 vendor rating at 965/1000, in the top 3.5% of all traders. Start from winning strategies, because the only way to do it is to spend the time proving it does work. These morons haven't spent the time in the real platforms perfecting trading systems. I don't consider what I do technical analysis, though. It is a lot of applied mathematics, and so much more than moving averages. Averages, standard deviations, normalized values, if it doesn't have that, it's not going to work. Calculating fair values based on volatility is how it's suppose to work.

 

[maxpi]

Sorting out the garbage is easy, just invent the Holy Grail and put it on a chart and compare all the indicators to it

 

[PetaDollar]

Ah, the eternal thread.

We need to start some sidebets on these.

Possibilities:

(1) Troll Trifecta-- pick the order of appearance of the first three TA-dissing trolls

(2) "Pick the page" number--
a. before digressing into personal attacks
b. when thread morphs into random walk discussion


Other ideas?

 

[PetaDollar]

Kudos to makloda for the succinct and authoritative dismissal of this "research" only 16 minutes after it was posted!

 

[Random.Capital]

Quote from Arnie:

In the hands of a good trader, TA works.

In the hands of a good trader, flipping a coin works.

 

[Random.Capital]

Quote from athlonmank8:

There's absolutely NO WAY to accurately test whether TA works in general.

Are you sure you realize what you just said?

 

[black diamond]

Quote from PetaDollar:

Ah, the eternal thread.

We need to start some sidebets on these.

Possibilities:

(1) Troll Trifecta-- pick the order of appearance of the first three TA-dissing trolls

(2) "Pick the page" number--
a. before digressing into personal attacks
b. when thread morphs into random walk discussion


Other ideas?

Page 5 you bitch! Sorry I couldn't resist.

 

[black diamond]

Seriously, I don't see what the 'controversy' here is. Of course its not conclusive but I think it is cool that somebody runs these tests and shares the results. Not interesting enough to actually read though.

 

[Xspurt]

These guys are at university. That means they are smart. If they say TA doesn't work and it's garbage then that must be the case.

I have no idea what I'm doing wrong as my results differ from theirs.

I have a question. If their TA doesn't work and they did the opposite would that work?