Why does anyone take technical analysis seriously?

[Mtrader]

I looked back at Mtrader's posts and couldn't find what you described. Then I used the search engine. Mtrader's never used the word 'noise'. Is there a different word I should search for? Chop? Congestion?

I think Q3D is another nickname for Markersurfer. They both have the same "deformation", they both post things I never said.
Logically you should make money eliminating the noise, because the noise is not essential and only tries to confuse people. What is left after eliminating the noise is valuable.
So my opinion is just the opposite of what Q3D pretends I was writing.

 

[SunTrader]

Technical analysis works because people believe in technical analysis.

And for everyone who says it is self fulfilling there is another who says Wall Street goes against the retail crowd who watch their RSI/Stoch/MA's.

Really? They sit in wait for a MA crossover and do the opposite. Sound plausible?

It doesn't to me. Same for self fulfilling garbage.

 

[SunTrader]

Why does anyone take funnymental analysis seriously - which is what a vast majority of Wall Street firms currently and historically have used to ... lose at such a high failure rate?

No problem with naming those names. If I had enough time to do so.

 

[Mtrader]

Fundamental analysis works slower and sometimes even not, like any analysis. It is not because fundamental data is good that the price wil rise.
It takes also a lot of time to collect and analyze it.
And finally, why not take a shortcut? The only thing that matters is the price, because only the price will define the profit. So try to watch the price and it will reflect how the market will react on the fundamental data. Even good fundamental data is no garantee for stocks going up. Prices on the other hand are never wrong, because the trade will be executed at the price and the profit will be calculated based on the price, not on the fundamental analysis.

 

[NoDoji]

Can you debate that the EXACT SAME patterns form in random number generated charts??

Where can I find random number generated charts? I'm curious if the same setups I trade occur in such charts with the same positive expectancy my trade management rules produce.

 

[justrading]

I have found an interesting study. See here:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2648292

You should start a thread in Technical Analysis titled "Technical v Fundamental Analysis - a Study", and post this link.

I haven't read it yet, just the intro, but it looks interesting. The trouble with just posting here is this thread has become one long argument and some people just stop following because of that, which is a pity, they miss the good stuff like what you posted.

 

[wrbtrader]

Where can I find random number generated charts? I'm curious if the same setups I trade occur in such charts with the same positive expectancy my trade management rules produce.

I can't remember the name of the website that does such but someone posted here a series of randomly generated charts along with one real and ask the "so called" TA experts to determine which chart is real and which were randomly generated in a heated debate about "Random Walk Theory"...it was in that heated debate that a name of a website was mentioned by someone.

Anyways, many so called TA experts showed up and accurately identified which ones were random and which chart was real...a few experts did not.

In contrast, it was just the opposite for the bashers...many could not and a few could. I thought that was funny.

...Why do some people actually base their investing decisions on technical analysis? From my own long experience it doesn't mater THAT much.

Some come to TA because other stuff they tried just didn't work.

Some come to TA because its heavily promoted by their charting vendor.

Some come to TA because some make it seem like its easy.

Some come to TA because other methods just are not as well discussed.

Some come to TA because they heard the long term trading or investing...TA works better on those time frames than day trading

Some come to TA because are a scientific in their thinking and believe they can do such via TA

 

[justrading]

I can't remember the name of the website that does such but someone posted here a series of randomly generated charts along with one real and ask the "so called" TA experts to determine which chart is real and which were randomly generated in a heated debate about "Random Walk Theory".

Anyways, many so called TA experts showed up and accurately identified which ones were random and which chart was real...a few experts did not.

In contrast, it was just the opposite for the bashers...many could not and a few could. I thought that was funny.

Busy watching RWC so I haven't been terribly industrious with my search, but I came across this one.

https://forum.incrediblecharts.com/messages/191443/756924.html

 

[marketsurfer]

Why does anyone take funnymental analysis seriously - which is what a vast majority of Wall Street firms currently and historically have used to ... lose at such a high failure rate?

No problem with naming those names. If I had enough time to do so.

Wall Street firms lose at a high failure rate? Dude, this is maybe the most uninformed and ridiculous claim ever made on elite-- and thats saying alot!

 

[Airwaves]

Where can I find random number generated charts? I'm curious if the same setups I trade occur in such charts with the same positive expectancy my trade management rules produce.

Here's one: