the basic flaws in TA

Technical Analysis is the means by which you predict the future prices based on analyzing the past prices.

So, technical analysis can really be anything. If everyone uses technical analysis and most people are bound to lose in this game.. T/A would only work for a few winning traders.
 
T/A would only work for a few winning traders ..True . I do-not enter a trade based on T/A but it is part of the equasion when I do enter the market...so yes it does work but not 100%..
 
I was thinking hard about TA and FA. Then I realised that winning in market is similar to trying to loose weight. Some people have lost with Atkins, some with South Beach, some with cabbage soup and... you got the point. But if you go back and look at who had kept the weights off after 2 years it is usually the person who worked out and had a balanced diet.

Working out and eating a balanced diet is similar to FA whereas everything else is TA.
 
TA is what I use in my trading account. TA reflects fundamentals, so you get the best of both worlds. Markets are based upon crowd psychology more than fundamentals and TA shows you the crowd sentiment.
 
Quote from marketsurfer:

" an object in motion tends to remain in motion, untill acted upon by an outside force" obviously the TA practioner is refering to price-- price will continue in the same direction that it is traveling untill acted upon by an outside force. This is absolutely insane ! price is not an object in motion, regardless of what it looks like on a chart. I have heard the gurus of TA and trendtrading refer to this analogy. If the basic analogy contains serious flaws, how can the rest of the concept support itself??
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The basic flaw in Surfer's analysis is that while price is not in motion, crowd sentiments are. Crowd sentiments drive priceand this is what makes TA very reliable and the best way to trade
 
Quote from Buy1Sell2:

The basic flaw in Surfer's analysis is that while price is not in motion, crowd sentiments are. Crowd sentiments drive priceand this is what makes TA very reliable and the best way to trade
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hi,

please elaborate a little on crowd sentiments being in motion--- are you refering to the change from pessimism to optimism, from buying to selling, and from fear to greed?

thanks!

surf:)
 
Quote from Buy1Sell2:

The basic flaw in Surfer's analysis is that while price is not in motion, crowd sentiments are. Crowd sentiments drive priceand this is what makes TA very reliable and the best way to trade
More...

I agree Buy1Sell2.

After attempting to read a large portion of this thread I stopped, feeling my IQ dropping as I read it.

T/A combined with F/A is the most potent combination to use IMO. What kills most people who try T/A is that they do not understand what the indicators and charts are telling them. They also try to pick the exact bottom or top. They think it should tell that what is indicating will always happen.

T/A just tells you where a potential point to place a trade exists; it does not guarantee that what is indicated will happen. If it does not happen, get out.

When they fail at this they assume it does not work. Since it did not work for them they try to convince others that it does not work. This is a need to be correct/right, one of the key things to trading, using any method, is to realize that being correct/right is unimportant. The fact is that you have to learn that you will be wrong.

I state the above because I know it works.

Make your own decision.

I wish you success in whatever you do.
 
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