Technical Analysis = CRAP

[Neenisti]

Quote from 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 use all objective rules based oscillation set-ups that are programmable for all of my trade decisions. These are not some subjective discretionary art trades made by some idiot with a magic 8 ball, tea leaves, an aluminum foil pyramid hat and flowing robes.

All of the rules are the result of over a decade and a half of research that I have personal verified before I trusted a nickel of my money into it.

I absolutely agree with you that if a consistent verifiable TA method were available to the general public, the results would be devastating
"IF"
everyone would use it.

The problem is not everyone would use it. No matter how successful it was. There will always be a certain segment of the population that would have an issue with it for whatever reason. A perfect example are a number of individuals on this site that couldn't verify it was raining outside their home even if they were standing in it.

 

[Neenisti]

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. Mark

Yes, and if you disagree you are dead wrong.

Pit traders have learned to "See" and "Remember" the markets last support and resistance levels as it relates to their specific trading pit.
When price is currently moving up from last support, the pit is buying TOWARD last resistance.
When price is currently moving down from last resistance, the pit is selling TOWARD last support.
That is TA in its purest form.

 

[Eddiemorra]

Quote from Frits:

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

so just flipping a coin as to whether to go long or short with a pre-determined stop loss that is smaller than your profit target should do the trick??

 

[wrbtrader]

Quote from Neenisti:

Quote from Neenisti:

I use all objective rules based oscillation set-ups that are programmable for all of my trade decisions. These are not some subjective discretionary art trades made by some idiot with a magic 8 ball, tea leaves, an aluminum foil pyramid hat and flowing robes.

All of the rules are the result of over a decade and a half of research that I have personal verified before I trusted a nickel of my money into it...

I could be wrong but I think Frits is saying that if you're using TA and you're a profitable trader...

All the credit for your profitability shouldn't be given exclusively to TA even though he's obviously making "one size fits all" TA bashing statements.

For example, your profitability may also be due to your programming skills and over a decade of market experience. Thus, to you, it's not all about TA alone.

Quote from Neenisti:

Yes, and if you disagree you are dead wrong.

Pit traders have learned to "See" and "Remember" the markets last support and resistance levels as it relates to their specific trading pit.
When price is currently moving up from last support, the pit is buying TOWARD last resistance.
When price is currently moving down from last resistance, the pit is selling TOWARD last support.
That is TA in its purest form.

So basically you're saying when my Mom turns on CNBC and sees a price quote on the TV screen that shows her stock is down 25% and when she reacts by selling her stock without looking at a stock chart...making a decision based upon price quote alone...

She's using technical analysis ???

Mark

 

[Neenisti]

Quote from failed_trad3r:

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.

Each time you post it is obvious why you chose your nickname. You need another one called "fail3d logic" as well.

 

[Neenisti]

Quote from wrbtrader:

I could be wrong but I think Frits is saying that if you're using TA and you're a profitable trader...

All the credit for your profitability shouldn't be given exclusively to TA even though he's obviously making "one size fits all" TA bashing statements.

For example, your profitability may also be due to your programming skills and over a decade of market experience. Thus, to you, it's not all about TA alone.

Mark

It's not my programming skills. I couldn't program my way out of a wet paper bag.
Solid programming relies on solid logic and solid logic can't be based discretionary or subjective rules.

 

[wrbtrader]

Quote from Neenisti:

It's not my programming skills. I couldn't program my way out of a wet paper bag.
Solid programming relies on solid logic and solid logic can't be based discretionary or subjective rules.

What about your "over a decade" of market experience...do you think that has any influence in your profitability ???

Mark

 

[Neenisti]

Quote from wrbtrader:

So basically you're saying when my Mom turns on CNBC and sees a price quote on the TV screen that shows her stock is down 25% and when she reacts by selling her stock without looking at a stock chart...making a decision based upon price quote alone...

She's using technical analysis ???

Mark

Mark, you are being silly. It is obvious from your comment you've never been in a pit or taken the time to talk to any of the pit traders. The traders in the pit do not make decisions based on a single price stamp and the percentage that particular price stamp is either higher or lower than the open. If you bothered to read my post, that point was made crystal clear on how then run their trades. If you didn't understand my post then it goes a long way toward you not understanding how price moves.

 

[Neenisti]

Quote from wrbtrader:

What about your "over a decade" of market experience...do you think that has any influence in your profitability ???

Mark

Absolutely not because I have a guy here in the office that has less than a years experience trading, that trades the same objective rules I do and he's as profitable as I am. Sometimes more because the little fart gets better fills than I do.

 

[Frits]

Quote from wrbtrader:

I could be wrong but I think Frits is saying that if you're using TA and you're a profitable trader...

All the credit for your profitability shouldn't be given exclusively to TA even though he's obviously making "one size fits all" TA bashing statements.


Mark

Indeed you are wrong about what I'm saying Mark. Read my statements again and I'm sure you'll eventually get the point. If I didn't explain it clear enough for you then I apologize for that.

Shaka ,

Frits