How much can you rely on technical analysis alone?

[Technically Fundamental]

Interested to hear your views guys. And also to hear what other important factors you consider when trading you chosen market. Not asking you for your trading plans here just a general.

 

[Trader333]

How much can you rely on technical analysis alone?

At best around 50% in my view.


Paul

 

[tenbobtrader]

think its better to rely on your own analysis or TA just becomes an arcade game giving excuse after excuse to trigger


ie: read up what a rsi is and is supposed to do or measure

see if it does what it says it does on the tin




"If there's free money around nobody is going to be stuffing it in your pockets."

 

[Technically Fundamental]

"If there's free money around nobody is going to be stuffing it in your pockets."
Livermore.

I don't use RSI. Who's to say the brokers isnt fiddling it ;-)

 

[Rhody Trader]

Interested to hear your views guys.

Depends on your timeframe of trading, in large part. The more short-term you go the less you can use fundamentals, meaning technicals become more required. You cannot scalp or day trade, for example, on fundamentals (I don't include news trading in fundamental trading).

And also to hear what other important factors you consider when trading you chosen market.

Personal interest, capitalization requirements, market available during the time of day when you'd want to trade (day trading).

 

[Technically Fundamental]

At best around 50% in my view.


Paul

t'other 50?

 

[tenbobtrader]

I don't use RSI. Who's to say the brokers isnt fiddling it ;-)

it was an example

you asked the Question

all TA is BS imho and the broker in all probability invented it all

 

[trader_dante]

1%.

The other 99% on gut instinct.

 

[tomorton]

Short-term (including scalping, swing trading and trading on reaction to news), 100% TA. OK, its not 100% reliable but it allows you to readily identify exit / stop levels.

Long-term I'd still say TA 80-20. LTBH investors will say this is nonsense but which of them ever bought a share without asking their broker its price today, and making at least a mental assessment of where it had moved since they had this on their watch-list? That is TA, whether on-screen, on paper or in their heads, its TA.

 

[everyonerich]

50%

 

[Technically Fundamental]

1%.

The other 99% on gut instinct.

That doesn't count. You've been in the game for 8 years or so and your instincts will have been honed through experience.

 

[counter_violent]

A zillion ways to compare and measure things with things and against things.

It's all technical....measuring....

 

[Trader333]

t'other 50?

Managing the trade in my view.


Paul

 

[Black Swan]

1%.

The other 99% on gut instinct.

 

[Black Swan]

That doesn't count. You've been in the game for 8 years or so and your instincts will have been honed through experience.

Whooosh....:whistling

 

[tony_snowball]

much less than 50% - you can give two technical analysts the same chart and they will get two differnet views...they probably couldn't agree on how to draw a trend line....having said that I personally like techy analysis - but only in that it gives me a starting point on something to agree or disagree with and so form a view...

 

[Technically Fundamental]

OKay lets switch it up. Who pickes trades tech---> fundy and who trades fundy---->tech

That last question dried up pretty quickly.

 

[tony_snowball]

I take tech over fundamentals..... that is unless I have feeling to fade the fundamentals 'cos the world and his wife is looking at those and using them to justify their book and beat me round the head as to why cable can't go any lower / higher .....

 

[GammaJammer]

I use fundamentals, technicals, market context, positioning etc all together to form my view of the financial markets. Sometimes one is dominant over the others, sometimes not. Saying '50%' is completely and utterly pointless imho.

There is important info contained in ALL of those sources. Someone trading a purely technical 5 minute scalping strategy which tells them to go short eurchf just as the SNB / BIS start hoovering it up like a supermodel attacking the bolivian marching powder at precisely the levels any savvy trader would be watching just because they can't be @rsed to learn about anything other than charts is frankly retarded imho.

 

[Calinor]

Like GammaJammer I think it is hard to answer as a % (or meaningless). The only thing I rely on 100% is my stop. I use technical analysis for almost all of my entries. In fact even the Swiss National Bank drawing a line in the sand at 1.5 for example I would then think of that as my support line, which is technical analysis (but also news and fundameantal).

I think GammaJammer's approach is obviously the best. I would like as much useful information as possible. Unfortunately although I look at these things, I don't have the experience to play them yet, so I stick to technical analysis mainly. Technical analysis gives me points to get in, and points to get out. For me personally that is useful