Technical Analysis = CRAP
- Thread starter Frits
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The basics of my trading is very, very simple. It's built on two pillars:
- Limit your losses and let your profits run.
- Markets move at random and there is NO way you can predict the market's next move.
And if anyone really found a way to predict the market by using TA, well congrats on that! I made it clear why TA doesn't work in the OP. Maybe there are traders who think they make profits thanks to the use of TA. I think those traders are giving themselves not enough credits. In my opinion they just turned themselves into professionals. They did so by spending thousands of hours analysing the markets, and not because of the use of TA.
However it can't get any worse then not being able to predict the market, but still you can make money if you apply the "limit your losses and let your profits run" principle.
Good luck with your trading!
Shaka
,Frits
Most of those who spent 'thousands of hours analyzing the markets' do so by the use of some form of TA. Chart analysis, PA, volume or really ANYTHING that doesn't involve strictly fundamental analysis, is using some form of TA. TA is a VERY LARGE subject, and much encompasses TA. It sounds like you use some form of TA....do you ever look at a chart?
Frits, I've been doing this for over 12 years, full time, and TA is at the heart of what I do. Sure, I crafted my approach based on my experiences but I use TA on each trade, multiple times a day, every week, each month, each year for many many years. I do give myself credit for coming up with a specific sequence that I look at to determine my trades but they are all based off of several TA metrics that overlap....and that synergy is what tells me to trade. If I don't get it, I don't trade.
PS You made it clear why TA doesn't work for YOU.....but that doesn't mean it doesn't work for others. Just to be clear.
Frits, I've been doing this for over 12 years, full time, and TA is at the heart of what I do. Sure, I crafted my approach based on my experiences but I use TA on each trade, multiple times a day, every week, each month, each year for many many years. I do give myself credit for coming up with a specific sequence that I look at to determine my trades but they are all based off of several TA metrics that overlap....and that synergy is what tells me to trade. If I don't get it, I don't trade.
PS You made it clear why TA doesn't work for YOU.....but that doesn't mean it doesn't work for others. Just to be clear.
Quote from Frits:
And if anyone really found a way to predict the market by using TA, well congrats on that! I made it clear why TA doesn't work in the OP. Maybe there are traders who think they make profits thanks to the use of TA. I think those traders are giving themselves not enough credits. In my opinion they just turned themselves into professionals. They did so by spending thousands of hours analysing the markets, and not because of the use of TA.
However it can't get any worse then not being able to predict the market, but still you can make money if you apply the "limit your losses and let your profits run" principle.
Good luck with your trading!
Shaka
Frits
The example I gave you in the OP doesn't just concern ME. It's about the overall use of TA by any trader.
- If TA would work it's predictive value would be killed by the fact that it has predictive value. E.g no one is gonna sell when TA predicts that the market is going up.
- Everybody sees something different due to: different charts + different time frames + different indicators + different TA settings = zero predictive value.
You can argue all you want about that, but these are just facts. If you have success in trading I suggest you compliment yourself instead of giving TA credits.
Trade well!
Shaka
,Frits
I don't think he looks at a chart based upon something he posted earlier in this thread.
Quote from Frits:
...If you want to trade on price action you don't need a chart with lines in it. A DOM-trader will do to see price action and volume.
Nevertheless I personally think price action is very interesting and if you want to know more about it, start here. www.nobsdaytrading.com It's quite informative and good for a few laughs!
Shaka,
Frits
Thus, he's correct because there are two types of "price action traders".
1) A trader that use TA without technical indicators...often called chart reading.
2) A trader that use bid/ask/time & sales data screen without charts...often called DOM or tape reading.
My point...you can be a successful price action trader that doesn't use TA. Yet, if you do use a chart for any reason what so ever, even for visualization purposes only...you're using TA.
Regardless, although I'm a strong believer in price action trading without technical indicators...I do use charts. Therefore, I use TA. Yet, I'm also a strong believer that charts alone will not make you a profitable trader. Thus, arguably there are more important things in a profitable trader's trading plan that has nothing to do with charts, TA or DOM screens (e.g. market experience, money management, proper capital, discipline, proper trading equipement, proper trading environment, stress management and so on).
Mark
TA for me = price action. And price action is always discretionary, discretionary is unreliable, so TA is unreliable. I disagree with the notions that everything that isn't FA is TA, it's more the other way around. Everything is FA that isnt TA.
I strongly disagree. Lets put it this way, whenever a floor trader looks up at that big quote screen or whenever any person (trader or none trader) see price quotes on any financial TV network (e.g. CNBC, Bloomberg)...
You're suggesting they all are using Technical Analysis.
Regardless, we are talking about the typical forum discussions...the typical TA basher discussions. They usually are talking about one area of TA called "technical indicators".
Lets not give them psychological issues when different types of TA or price action trading is revealed after they been looking at a chart.
Simply, I do agree that there are different definitions of what exactly is TA, Price Action Trading or FA. Use what works for you (the only fact that matters) and you can call it "sushi mama" if you want.
Mark
CORRECTAMUNDO... on both counts.
Quote from wrbtrader:
I strongly disagree. Lets put it this way, whenever a floor trader looks up at that big quote screen or whenever any person (trader or none trader) see price quotes on any financial TV network (e.g. CNBC, Bloomberg)...
You're suggesting they all are using Technical Analysis.
Regardless, we are talking about the typical forum discussions...the typical TA basher discussions. They usually are talking about one area of TA called "technical indicators".
Lets not give them psychological issues when different types of TA or price action trading is revealed after they been looking at a chart.
Mark
You "disagree", "STRONGLY".. YOU ARE WRONG... IMNSOHA
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