Why do traders talk about TA as if it is physics ?

[traderwald]

Hi guys,

I read and watch videos about TA where traders explain it as if it follows the physics rules like it swings like a pendulum etc. Why is that ? I don't think there is any relation and quite a bit of distance from reliability of physics to the wide assumptions of TA.

Also, how can one say TA is useful when what we know is only about what is going on in the market (i.e. what those with money invested) are doing and nothing about what those outside are doing and how much money they have (or does it actually tell about where all the money is and how much there is ? even when it is outside they market)

Edit: I actually appreciate TA and do not think it is not useful. Only saying the above because when I look ta some of the TA explanations, it is on occasion as if they forgot this is not physics like in its reliability.

Thank you

 

[Ayn Rand]

Life in general is like TA. You have lots of "experts" walking around, pontificating, like they know something.

You are right in your assumption. Do not get sucked into the trap of numbers and equations and jargon. They blinded me with "science".

If I only knew a little more I would master the market - not.

 

[deaddog]

Technical Analysis is a windsock, not a crystal ball.

 

[maxinger]

Why do traders talk about trading as if it is about science and / or arts?

Demo trading is about rocket science / physics / chemistry / biology.
Live trading is about the arts / emotions plus some simple
maths like + and -.

Thank you.

 

[David's faith]

Trading is the sport of beeing more often right than wrong. If TA helps you get there, it helps you get there.

 

[guest_trader_1]

Technical Analysis, that pseudo-science that can explain the past and never the future.

 

[.sigma]

Technical analysis is a method of displaying price through time. Its an image, and images are open for the most diverse interpretations. Now these interpretations might not make sense to you, but that doesn't mean you should discredit it. Understand why he's using physics as an explanation, even if hes wrong.

To me it could be benficial to study how OTHERS view the markets, so you know what you're up against.

But the reason whoever youre talking about is saying that is because physicists are the modern day hedge fund traders.

Btw, I'd say technical analysis is more related to geometry than any other field of mathematics.

 

[userque]

I read and watch videos about TA where traders explain it as if it follows the physics rules like it swings like a pendulum etc. Why is that ?

Because market charts can display a sine wave type of formation. Pendulum motion doesn't just refer to the repeated stationary pendulum clock motion of left-to-right-to-left.

I don't think there is any relation and quite a bit of distance from reliability of physics to the wide assumptions of TA.

There is. We call cars "she/her," even though cars are far from being humans. Some say that 'this rally has legs' even when it doesn't. Some say 'it's going to the moon' when we know it's not.

I don't understand why anyone would take these sayings literally; or why they'd be confused as to their use.

Also, how can one say TA is useful when what we know is only about what is going on in the market (i.e. what those with money invested) are doing and nothing about what those outside are doing and how much money they have (or does it actually tell about where all the money is and how much there is ? even when it is outside they market)

One can say it's useful by ... finding a use for it. How, by testing out known 't/a' and testing out new ideas ... to see if they're useful.

Edit: I actually appreciate TA and do not think it is not useful. Only saying the above because when I look ta some of the TA explanations, it is on occasion as if they forgot this is not physics like in its reliability.

Either you are 'different' in thinking that a trader doesn't know the difference; or the trader is 'different' in not knowing that there is a difference.

 

[Peter8519]

Quote from Oxford dictionary.
quantum mechanics - the branch of mechanics that deals with the mathematical description of the motion and interaction of subatomic particles, incorporating the concepts of quantization of energy, wave–particle duality, the uncertainty principle, and the correspondence principle.

Renaissance Technologies LLC employs physicists.

 

[.sigma]

Quote from Oxford dictionary.
quantum mechanics - the branch of mechanics that deals with the mathematical description of the motion and interaction of subatomic particles, incorporating the concepts of quantization of energy, wave–particle duality, the uncertainty principle, and the correspondence principle.

Renaissance Technologies LLC employs physicists.

Yup, Simons co-invented the "Chern-Simons 3 form", which is important in string theory.

1988-1998 (although prolly the strongest vector bull move in prices ever) his Medallion fund returned 2,478%.

So yea, maybe physics has SOME merit lol