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 piphoe TA is not much more than curve fitting to the data, I believe It's only curve ...

View Poll Results: Does technical analysis work in your opinion?
It does 26 52.00%
It doesn't 12 24.00%
No foggest clue 5 10.00%
What's technical analysis? 7 14.00%
Voters: 50. You may not vote on this poll

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Old Apr 5, 2016, 9:20pm   #61
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Originally Posted by piphoe View Post
TA is not much more than curve fitting to the data, I believe
It's only curve fitting if it projects forward.

TA is good for assessing the past but people mistakenly believe it has predictive abilities, that the banks future behaviour is mechanical in nature and subject to control by the TA.
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Old Apr 5, 2016, 9:30pm   #62
 
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But they are willing to buy. I can see people here banging the door down just to get a piece of the action. They'd get angry with me if I tell them it's a bad idea.

Typical retail buyers for financial assets are pretty dumb. All the bank has to do is to lift the price and people will be queuing up for it. This doesn't occur at Walmart, and this is the reason I use Walmart as an example. People should buy from the market in the same discerning way as they do at Walmart.
They're not always willing to buy in an auction market. If they were always willing to buy, price would never decline. Wal-Mart is irrelevant, as are banks. They are not auction markets. And this is supposed to be about trading.

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Old Apr 5, 2016, 9:49pm   #63
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They're not always willing to buy in an auction market. If they were always willing to buy, price would never decline. Wal-Mart is irrelevant, as are banks. They are not auction markets. And this is supposed to be about trading.

Db
Banks are irrelevant for currencies ? Okie dokie.
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Old Apr 5, 2016, 9:54pm   #64
 
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Banks are irrelevant for currencies ? Okie dokie.
The subject is how transactions are consummated on the auction market. Banks are of course pertinent. The examples you gave regarding banks are not.

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Old Apr 5, 2016, 9:58pm   #65
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The subject is how transactions are consummated on the auction market. Banks are of course pertinent. The examples you gave regarding banks are not.

Db
How does this auction market relate to retail forex ?
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Old Apr 5, 2016, 10:01pm   #66
 
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How does this auction market relate to retail forex ?
Supply and demand.

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Old Apr 5, 2016, 10:08pm   #67
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Supply and demand.

Db
So you don't know where the auction is taking place ?

Well, retail forex is an OTC market, we buy from them like we buy from Walmart, over a counter of some sort.

This should give your more ideas, just a random article I found:

https://www.investmentlawgroup.com/a...-forex-market/
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Old Apr 5, 2016, 10:13pm   #68
 
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So you don't know where the auction is taking place ?

Well, retail forex is an OTC market, we buy from them like we buy from Walmart, over a counter of some sort.
The OTC market is an auction market. Wal-Mart is not.

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Old Apr 5, 2016, 10:21pm   #69
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The OTC market is an auction market. Wal-Mart is not.

Db
Well Walmart's goods are supplied by people who had to bid for the privilege to supply them. So it's an auction market too.

So how those this auction help us ?
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Old Apr 5, 2016, 10:28pm   #70
 
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Well Walmart's goods are supplied by people who had to bid for the privilege to supply them. So it's an auction market too.

So how those this auction help us ?
You really don't understand how auction markets work, do you, much less how the imbalances between supply and demand move prices?

Best of luck to you with your trading.

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Old Apr 5, 2016, 10:44pm   #71
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You really don't understand how auction markets work, do you, much less how the imbalances between supply and demand move prices?

Best of luck to you with your trading.

Db
Thanks for the wish, but I don't need luck.

As I stated previously supply and demand does not move prices, inventory does.
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Old Apr 5, 2016, 10:50pm   #72
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Thanks for the wish, but I don't need luck.

As I stated previously supply and demand does not move prices, inventory does.
Semantics.
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Old Apr 5, 2016, 11:03pm   #73
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Semantics.
No. His supply and demand can't be quantified. But the inventory can and it is specifically related to the operator of a market. Same way you can quantify Walmart's inventory by a quick peek at the back. What they have at the back is what determines the prices in the shop front. Same principle for all markets.
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Old Apr 5, 2016, 11:05pm   #74
 
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you sound like a man who thinks he knows something joe.

What you think about Oscars pic?

Click the image to open in full size.
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Me and you, we is largely the same bruv! We dont know shît! The difference is, I know I dont know shît!!
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Old Apr 5, 2016, 11:14pm   #75
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you sound like a man who thinks he knows something joe.

What you think about Oscars pic?

Click the image to open in full size.
I know nothing about supply and demand since I don't even know where the auction is taking place. Maybe in a back room somewhere.

Cute cat.

As for the pic, nothing tells me where the inventory is at. Can't trade it.
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