Does technical analysis work or not?

This is a discussion on Does technical analysis work or not? within the Technical Analysis forums, part of the Methods category; Originally Posted by EnlightenedJoe There is no difference regardless the the chosen entry method. In order for the bank to ...

View Poll Results: Does technical analysis work in your opinion?
It does 22 53.66%
It doesn't 9 21.95%
No foggest clue 4 9.76%
What's technical analysis? 6 14.63%
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Old Apr 5, 2016, 4:31pm   #33
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Originally Posted by EnlightenedJoe View Post
There is no difference regardless the the chosen entry method. In order for the bank to make a profit, they have to move price against you. The direction and method of entry is irrelevant. Given that the price move is so predictable, maybe someone can take advantage of it. Being able to predict the future must have some value.
Yet we all make different entries in different directions at different times, based on our individual understanding of technical analysis. So how can banks profit by moving the price against each one of us?
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Old Apr 5, 2016, 4:35pm   #34
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We all know news events are volatile and it should be expected to violate any form of analysis. That doesn't mean TA is useless all of the time!
Sure, but you can't temporarily exit the market with your trades that have reached neither TP nor SL by the news time - which isn't even always known, whereas data is released all the time and you can't tell which bit of it will turn out to be a major market mover.
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Old Apr 5, 2016, 4:35pm   #35
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Originally Posted by babyjake1961 View Post
Yet we all make different entries in different directions at different times, based on our individual understanding of technical analysis. So how can banks profit by moving the price against each one of us?
See post 18
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Old Apr 5, 2016, 4:36pm   #36
 
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Originally Posted by babyjake1961 View Post
Indicators or chart patterns or whatever else that you use as a basis in your TA. The economic data released or officials' statements don't care about any of that anyway when they hit the market. The same is with fundamental analysis: not only you need to guess an outcome of an event but also the market's reaction to it. Sure, you can do it sometimes but consistently if you're not privy to insider info?
None of that matters. Indicators lag too much. Patterns are unreliable. But if one is trading shifts between demand and supply, he can trade the shift. These shifts cannot be hidden as they are illustrated by the trades themselves.

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Old Apr 5, 2016, 4:38pm   #37
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Originally Posted by babyjake1961 View Post
So how can banks profit by moving the price against each one of us?
One common way way is to spike the price to reel the profit in from one direction and lock in the people facing the other direction for later consumption. This is a function of news events.

TA is useless against these type of actions because these are based on the present positions which bear no relation to past patterns (as a consequence of previous positions) that TA might have analysed.
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Old Apr 5, 2016, 4:42pm   #38
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Originally Posted by EnlightenedJoe View Post
One common way way is to spike the price to reel the profit in from one direction and lock in the people facing the other direction for later consumption. This is a function of news events.

TA is useless against these type of actions because these are base on the present positions which bear no relation to past positions that TA had analysed.
This might have been common practice years ago, it isn't today. Liquidity providers make spread and swap. There is too much competition these days for any one to purposely spike prices. The result of them doing this will be less clients doing business with them and they don't want that.
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Old Apr 5, 2016, 4:48pm   #39
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This might have been common practice years ago, it isn't today. Liquidity providers make spread and swap. There is too much competition these days for any one to purposely spike prices. The result of them doing this will be less clients doing business with them and they don't want that.
Spiking is common occurrence that happens every week. You don't trade, so you might not know.
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Old Apr 5, 2016, 4:49pm   #40
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You are just assuming now.
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