TA is BS?

[wrbtrader]

Apples and Oranges; not comparable or analogous. I can't say whether TA works or not as I have not seen any scientific evidence one way or the other. But there is a clear science to Epidemiology. Completely different domains of inquiry.

Actually, you pulled that message out of context.

I quoted him as a reply to his message when he stated you can see charts (patterns) in other areas not related to trading.

Here is the quote that I responded too...

...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.

wrbtrader

 

[guest_trader_1]

TA is like a religion, you have to be indoctrinated in order to believe on it.

If you look for a proof that TA works you'll never find it.

TA acolytes always point to charts that explain the past, none of them will ever give you and analysis of what will happen next.

The same way Jesus walked on water and horoscopes predict your future, TA will make you rich.

 

[murray t turtle]

Sorry, I should have said TA by itself. I'm sure TA along with FA and other Macro Economic factors works to some extent (sort of a gestalt sense of the markets as a whole). My understanding is that TA by itself has never been demonstrated to be very successful; but I guess it also depends upon how you define the domain of TA, and in any case it would be hard to use TA in a vacuum.

%%
Good points;
to exclude fundamentals could or would be a big mistake, even if they are not used much.
QQQ .........doesnt trade like SPY + related; but perhaps, one could get by using same system+ same discretion.

 

[murray t turtle]

TA is like a religion, you have to be indoctrinated in order to believe on it.

If you look for a proof that TA works you'll never find it.

TA acolytes always point to charts that explain the past, none of them will ever give you and analysis of what will happen next.

The same way Jesus walked on water ........ TA will make you rich.

%%
Good points;
but that water walking pattern happened once. King Solomon said- In all labor there is profit-Proverbs.
Of course other things happened like ''finding a coin to pay taxes, in first fishes mouth ''= not a real common pattern, also. Matt 17;27 NKJV
I heard a good joke about a fake palm reader= ''Sister Elijah AD sign = KNOWS All, Sees All, Tells All.$25
Honk when you drive up LOL

 

[lucysparabola]

TA is just a tool to measure mass psychology - of which tech, fundamental, everything - encompasses.

 

[Pekelo]

This question is probably the most often asked and the most fruitless discussion. It even beats politics or religion and that is saying something. Neither side is getting the point.

What I don't get it this: If you don't believe in TA, why bother? Why not just use something else, instead of trying to convince others. Or do you want to believe in it and need to be convinced? Why?

Anyhow, going back to network TV watching talking heads debating politics, at least there are some good looking chicks on TV instead of this abomination of thread...

 

[murray t turtle]

TA is just a tool to measure mass psychology - of which tech, fundamental, everything - encompasses.

%%
THAT's a complete definition of TA;
good + i never thought of it that way.
Rich Dennis reportedly said something like '' we dont care if its beans or bonds''. OK by me.
But i know Dave Ramsey says beans + rice until the budget gets balanced + he never likes bonds Sounds like Dave Ramsey values beans more than > bonds\LOL
A redneck called in his radio show once + said rather than beans + rice; venison + rice

 

[TrAndy2022]

Do not forget you only have past data or historical data. That is certain and that can be analyzed with whatsoever analysis. The future is uncertain and no one knows it (for sure). All you can do is looking into past data and then making a decision based on that. Maybe the best option is for you news trading. But then again you have to estimate the moves based on news, that might be also looking on past data. Also there is no clear line which differs between TA and FA, so this is more a kind of definition thing. And you might have heard of Jim Simons with his famous Rentec hedge fund who had stellar returns for decades. And he used only pure TA. If that is no goal for you alone, I do not get it.

 

[MrAgi1]

And you might have heard of Jim Simons with his famous Rentec hedge fund who had stellar returns for decades. And he used only pure TA.

@TrAndy2022 You are sure about that?

https://en.m.wikipedia.org/wiki/Jim_Simons_(mathematician)

I think quantitative trading is not the same as looking at chart patterns(like head and shoulders), no?

 

[SunTrader]

Quants crunch data. TA is all about data (price, time, momentum, volume) not just patterns.