TA is BS?

[MrAgi1]

It appears humans like to create patterns in randomness. Almost every TA trader I have watched are hindsight talkers. Trading is difficult and even the very few inefficiencies that exist(if they actually do) does not exist forever and there is always the search for new once. Now we are competing with AI which can create limitless amount trading ideas and backtest them based on its database to find edges or inefficiencies faster than any human can ever do.

However, sitting in front of a screen to analyze chart patterns so as to predict the future prices just looks like BS. Although to be fair, maybe if everyone does it becomes a self fully prophesy, even though it makes no sense.

The short video above is interesting. Take a listen.

 

[wrbtrader]

It appears humans like to create patterns in randomness. Almost every TA trader I have watched are hindsight talkers. Trading is difficult and even the very few inefficiencies that exist(if they actually do) does not exist forever and there is always the search for new once. Now we are competing with AI which can create limitless amount trading ideas and backtest them based on its database to find edges or inefficiencies faster than any human can ever do.

However, sitting in front of a screen to analyze chart patterns so as to predict the future prices just looks like BS. Although to be fair, maybe if everyone does it becomes a self fully prophesy, even though it makes no sense.

The short video above is interesting. Take a listen.

There's a contradiction in your message post considering your thread title has a question mark as if you're "not sure" but your above quote is the complete opposite.

Regardless, there are hundreds of threads like yours on this forum...some almost a hundred pages of debates by both sides that can not prove it works nor prove it doesn't work.

• Simply, this is an old record that spins at Elitetrader.com

I recommend you stay away from TA considering it makes no sense to you but I'm curious what do you use to make your trade decisions ???

My opinion about the video is the same about your message post...the video author even states "there are a few benefits" but then states its basically crap without verification of either side. Another contradiction.

wrbtrader

 

[smallfil]

It appears humans like to create patterns in randomness. Almost every TA trader I have watched are hindsight talkers. Trading is difficult and even the very few inefficiencies that exist(if they actually do) does not exist forever and there is always the search for new once. Now we are competing with AI which can create limitless amount trading ideas and backtest them based on its database to find edges or inefficiencies faster than any human can ever do.

However, sitting in front of a screen to analyze chart patterns so as to predict the future prices just looks like BS. Although to be fair, maybe if everyone does it becomes a self fully prophesy, even though it makes no sense.

The short video above is interesting. Take a listen.

You do not believe in technical analysis, then, do not use it. Nobody is twisting your arm and forcing you to. Nobody cares whether you use it or not. "What it is is a tool and nothing more." I have had this debate with ET trolls about a month ago. Huge waste of time and I was trying to actually, help these ET trolls? Where are those ET trolls? Do they actually, trade the stockmarket? Are they making lots of monies doing what they are doing? A number of them are whining and crying about the stockmarket? My guess is they have lost huge sums of monies. Ignorance will never do anything good for your life. Life is about choices. Choose wisely.

 

[MrAgi1]

There's a contradiction in your message post considering your thread title has a question mark as if you're "not sure" but your above quote is the complete opposite.

Regardless, there are hundreds of threads like yours on this forum...some almost a hundred pages of debates by both sides that can not prove it works nor prove it doesn't work.

• Simply, this is an old record that spins at Elitetrader.com

I recommend you stay away from TA considering it makes no sense to you but I'm curious what do you use to make your trade decisions ???

wrbtrader

Mostly I don’t trade. I mostly buy and hold stocks and other assets. Occasionally I trade non-directionally by selling options. Not against trading but I believe one should have a concrete edge before trading(something I am currently working on also). I think TA is not entirely BS, but I am specific about chart patterns. Some people trade using order flow, price action, fundamentals, sentiment e.t.c Even though it’s subjective and hard to prove that those things can be profitable, atleast the logic behind those makes sense. However for chart patterns, you can still see those patterns on so many things not related to trading(randomness) and then you assume it’s telling you price would go up or down.

 

[earth_imperator]

Basic TA is good, but don't expect more.
This is from wikipedia ( https://en.wikipedia.org/wiki/Technical_analysis ):

It is subjective: b/c for example why was the peak between 5 and 6 not detected as the end of the up-trend?
OTOH: maybe this would be another analysis than the focus here on support and resistance levels.

 

[maxinger]

TA is BS?

--->

TA is not BS.
Professional talkers & writers are BS.

 

[MrAgi1]

TA is BS?

--->

TA is not BS.
Professional talkers & writers are BS.

Great point.

 

[MrAgi1]

You do not believe in technical analysis, then, do not use it. Nobody is twisting your arm and forcing you to. Nobody cares whether you use it or not. "What it is is a tool and nothing more." I have had this debate with ET trolls about a month ago. Huge waste of time and I was trying to actually, help these ET trolls? Where are those ET trolls? Do they actually, trade the stockmarket? Are they making lots of monies doing what they are doing? A number of them are whining and crying about the stockmarket? My guess is they have lost huge sums of monies. Ignorance will never do anything good for your life. Life is about choices. Choose wisely.

It’s unfortunate if you think I am troll. That’s not exactly what I meant to pass along through my post. I was just expressing my opinion but I do get your point.

 

[wrbtrader]

...However for chart patterns, you can still see those patterns on so many things not related to trading(randomness).

Consider this...every government on this planet, real estate, medical, military, and many others use "charts" to make decisions.

The difference is each uses different terminology.

Regardless, its mainly used as a "descriptive explanation" to show an audience what has occurred and what may occur in the future.

As an example, the Pandemic charts show that we're currently trending down in Covid deaths, hospitalization, ICU admissions. It's enough proof to governments to open up the borders and make political promises to not use lockdowns again in this Pandemic because we're near to going into an Endemic.

Simply, I strongly doubt they're viewing those downtrend Covid numbers as "randomness".

wrbtrader

 

[MrAgi1]

Consider this...every government on this planet, real estate, medical, military, and many others use "charts" to make decisions.

The difference is each uses different terminology.

Regardless, its mainly used as a "descriptive explanation" to show an audience what has occurred and what may occur in the future.

As an example, the Pandemic charts show that we're currently trending down in Covid deaths, hospitalization, ICU admissions. It's enough proof to governments to open up the borders and make promises to not use lockdowns again in this Pandemic because we're nearing going into an Endemic.

Simply, I strongly doubt they're viewing those downtrend Covid numbers as "randomness".

wrbtrader

Exactly. Charts show past data. It’s very important to understand the situation at hand. However the government is not saying ooo, since we are currently at an descending triangle pattern then over the next 30 days we would do nothing and Covid cases would drop or something like that. We can look at the chart data to find trends. However those trends on the chart in itself does not predict the future of the pandemic situation, instead it tells the government what next step they should take.

It’s the action of the government that changes the future not the pattern on the chart.

@wrbtrader So the past data is important to know what already happened. However anything can happen in the future which could increase or decrease cases for CoVID and it’s not because of a wedge pattern, S/R or falling triangle we currently see on the chart. Well this is my opinion, I could very well be wrong.