Technical analysis... a load of ********

This is a discussion on Technical analysis... a load of ******** within the Technical Analysis forums, part of the Methods category; I use RSI, Stochastics, Moving Averages, MACD and Fibonacci Retracements. Someone I know who has worked in investment banking and ...

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Old Aug 9, 2007, 11:10am   #1
 
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Technical analysis... a load of ********

I use RSI, Stochastics, Moving Averages, MACD and Fibonacci Retracements. Someone I know who has worked in investment banking and heads up a team of traders said that all these methods and the shapes were "a load of ********"; that the real price is the current price; that up and down movement is completely random.

Any thoughts? It seems to work for me, which has made me confused a bit.
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Old Aug 9, 2007, 11:24am   #2
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what does he say to the traders he heads?
alright lads you know its all random lets press a couple of buttons for no purpose whatsover go home and do the same again tommorrow
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Old Aug 9, 2007, 11:41am   #3
 
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shadowninja started this thread

He mentioned hedging but I don't really understand it so can't relay the info.
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Old Aug 9, 2007, 11:46am   #4
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cant much point in hedging a trade with no edge with another trade with no edge.
must be some kind of arb operation
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Old Aug 9, 2007, 12:21pm   #5
 
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It's quite possible that if you're trading market neutral strategies such as calendar spreads you may not need so many indicators.

If you're dealing in millions you can move the market.

I've seen far to many price patterns such as triangles, fib level rejections to dismiss them as random, or patterns in certain indicators which can actually forecast price movement.
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Old Aug 9, 2007, 12:23pm   #6
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All TA works some of the time, and at other times it does not. The trick is to have wins outnumber losses, if not in % of trades terms, then in bottom line profit.
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Old Aug 9, 2007, 1:09pm   #7
 
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Quote:
Originally Posted by shadowninja View Post
I use RSI, Stochastics, Moving Averages, MACD and Fibonacci Retracements. Someone I know who has worked in investment banking and heads up a team of traders said that all these methods and the shapes were "a load of ********"; that the real price is the current price; that up and down movement is completely random.

Any thoughts? It seems to work for me, which has made me confused a bit.
If whatever you're doing works for you, then it doesn't make a bit of difference what anybody else says.

Listen to the chart and tune out everything else and everyone else.

Db
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Old Aug 9, 2007, 4:26pm   #8
 
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Quote:
Originally Posted by shadowninja View Post

that the real price is the current price; that up and down movement is completely random.

.
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