Prove to me that Technical Analysis Works.
- Thread starter TazTheLaz
- Start date
Certainly valid criticisms with one caveat, his opinion is based on his experience.
OHLC (price + time) + volume = market generated information.
How one parses that information whether it's through db tables, hand drawn lines, indicators, visual charts or fancy programming is much like a group of the blind touching various parts of an elephant and claiming only their particular experience is "the truth."
Confirmation bias is real. It will never sway a fixed position of opinion on the matter.
The only proof of it, whatever the "it" is, is through personal experience.
I dunno.. I don't think everyone would be able to post on that website. They must have some trustworthy background to be able to talk about it. Their points make sense to me, one after another.
Logical reasoning.
What would you make of this article from the same site?
https://www.nasdaq.com/articles/technical-analysis-for-beginners:-candles-and-patterns-for-stock-market-investing
I have no idea about the author of this post on Nasdaq or their particular claims. The counterpoint is that both views of pro/con TA are published on that site.
What about Schwager's Market Wizards, some of whom swore by their own version of TA and made more money than the writer of the article ever dreamed of? Remember that TA is a generic term and encompasses a lot of BS along with some valid, basic concepts. I think most of the people who get lost in TA rabbit hole are mired in the crap part.
That is interesting, so which one is not the crap part? The one I should look at.
Please explain how confirmation bias affects proper statistics taken on written trading setup/and/trigger pairs. Additionally, for any shortcomings that you list, what would you say are some actions that can minimize those?