Technical Analysis = CRAP

[marketsurfer]

Quote from luisHK:

Yes, they are the very fundations of the SMRF success

Seriously, any more feedback on those books ?

See amazon. After reading literally dozens upon dozens of trading books.( I am on Wiley finance's book reviewer list) These 2 standout as reality. Surf.

 

[Neenisti]

Quote from marketsurfer:

See amazon. After reading literally dozens upon dozens of trading books.( I am on Wiley finance's book reviewer list) These 2 standout as reality. Surf.

You never give up do you?

 

[marketsurfer]

Quote from Neenisti:

You never give up do you?

Huh?

I like to help others avoid the issues and confusion I had when I started. This is a difficult business for most.

 

[Fireplace]

Then he needs to clarify...because the thread title says TA and that encompasses a plethora of ways to view and make trading decisions.

Quote from marketsurfer:

I think the OP means "chart reading" when he refers to technical analysis.

 

[Neenisti]

Quote from marketsurfer:

Huh?

I like to help others avoid the issues and confusion I had when I started. This is a difficult business for most.

You already stated the reasons you are on this site and it has nothing to do with you being a kind hearted concerned person.

 

[marketsurfer]

Quote from Neenisti:

You already stated the reasons you are on this site and it has nothing to do with you being a kind hearted concerned person.

Meeting great people for synergistic relationships is a by product of my mission to help others. In addition to gathering intel for my own publishing/ writing business/hobby. I don't see a disconnect. You should attend the next "surf fest".

 

[the1]

You're still missing the point. There is definitely an inherent weakness with technical indicators. One you mentioned and the other being that they are derived from price so it's kind of like the tail wagging the dog. However, if you use a certain tool over an extended period of time you tend to learn how to "interpret" its meaning. For example, suppose you use a MACD histogram with the default settings. If you're brand spanking new to trading it's going to be of little help but if you've been using it for 5 years you'll know when to trust it and when not to because experience allows you to develop the ability to "read" the markets. It's the art of "just knowing" that's based on "I've seen this before." It's no different than learning how to fly a plane -- it takes time and after enough time the pilot knows when to zig and when to zag.

Quote from Frits:

You're right, so everybody sees something else! Matthew uses a 12 tick breakout chart, Denise uses a point & figure chart, Victor uses a 10 minute candlestick barchart, Pedro uses a 20 tick breakout chart, Donald uses a 1 minute candlestick barchart, etc. etc. I don't think I need to go on.

Furthermore they all have different settings in the timeframe of their technical indicators. One has RSI over 7 periods, the other over 15 periods, etc. etc.

Besides that there are over 50 technical indicators and the professionals (salespeople with their courses) tell you a combination of three is most solid. That's 50x50x50= 125000 combinations!! And that's without all the options of different charts and different time frames.

So every individual with is own settings for TA sees something different. And unfortunately one individual trader is not able to "give the market a certain direction". And if everybody sees something different what is the predictive value of TA... Zero.

Shaka ,

Frits

 

[failed_trad3r]

Quote from the1:

You're still missing the point. There is definitely an inherent weakness with technical indicators. One you mentioned and the other being that they are derived from price so it's kind of like the tail wagging the dog. However, if you use a certain tool over an extended period of time you tend to learn how to "interpret" its meaning. For example, suppose you use a MACD histogram with the default settings. If you're brand spanking new to trading it's going to be of little help but if you've been using it for 5 years you'll know when to trust it and when not to because experience allows you to develop the ability to "read" the markets. It's the art of "just knowing" that's based on "I've seen this before." It's no different than learning how to fly a plane -- it takes time and after enough time the pilot knows when to zig and when to zag.

comparing technical analysis to flying a plane. LOL.

 

[Fireplace]

No one cares what a 'failed trader' has to say when it comes to trading....unless you are telling us what NOT to do.

Quote from failed_trad3r:

comparing technical analysis to flying a plane. LOL.

 

[Neenisti]

Quote from marketsurfer:

Meeting great people for synergistic relationships is a by product of my mission to help others. In addition to gathering intel for my own publishing/ writing business/hobby. I don't see a disconnect.

From reading your posts the last thing you are interested in is building relationships. You don't help others, you are only interested in helping yourself. If there isn't something in it for you, you don't participate. You are a self serving person and the exact reason I work for myself. I used to work with people like you in corporate America and it was the main reason I ventured out on my own.

Antagonizing people into interacting with you seems to be your main purpose here. You sure don't offer any intellectual value. You can't back up a single post regarding TA except for your standard, "because all of my important friends say so". I have a brother-in-law like you and we all love his phone calls home for the Holidays . . . I, me, I, me, I, me, I, me, I, me and oh, call me back.

I don't see you hanging out bashing TA in the ES thread where they apply it daily and profitably. Most read thread on ET and no flaming. Maybe that is why you aren't in there.

Find a new hobby like volunteering your time at a children's hospital and learn some humility.