95% of what you read on these or similar forums regarding TA and how it is or should be used is bollox. Thats why it can seem like it's a rip off sometimes. Fact is it takes brains to trade and not lines on a chart or indicators. You have to learn to markets and learn how and when you may be able to apply TA successfully. It's not a blanket approach. All imho obviously.
Is all TA crap?
Is some TA crap?
Is TA crap under all circumstances?
Is TA crap under some circumstances? (corollary: is TA reliable under some situations)
What is TA? (mathematical formulations of the high/low/volume of price data to derive meta-patterns?)
What is crap? (what criteria must TA fulfill for it not to be crap?)
Is some TA crap?
Is TA crap under all circumstances?
Is TA crap under some circumstances? (corollary: is TA reliable under some situations)
What is TA? (mathematical formulations of the high/low/volume of price data to derive meta-patterns?)
What is crap? (what criteria must TA fulfill for it not to be crap?)
Markets have a number of phases in which they can be in at any given time and this can vary depending on the timeframe being observed. Most TA is based on one of the three key phases of trending, range bound or whipsawing. So in the event that someone is trading a trending market using range bound or whipsaw style TA then it will fail. What I have found is that the shorter the timeframe the more difficult it is to determine what phase a given market is in.
As most people seem keen to pursue day-trading this makes the task much harder in my view. To be clear, I am not talking about tape reading or DOM techniques here just the traditional approaches used in TA.
As most people seem keen to pursue day-trading this makes the task much harder in my view. To be clear, I am not talking about tape reading or DOM techniques here just the traditional approaches used in TA.
If you are using indicators to predict the future then you might not have much success. Imo the most useful tool i use is TA and it's used by almost every good trader (see Jesse Livermore) and that tool is S/R.
Paul Tudor Jones used Elliott Wave models and he is a huge success. Just make sure you are using the right tools for the right job!
Paul Tudor Jones used Elliott Wave models and he is a huge success. Just make sure you are using the right tools for the right job!
If you are relatively new to trading, you may as well toss a coin and achieve better results imho
If you are relatively new to trading, you may as well toss a coin and achieve better results imho
or just have eyes and see which the price is going. if it aint goin nowhere dont trade.
ha ha hhe. trading is simple.
BUT IT ISNT EASY.
maybe.............its actually the 99.9 % of traders that learn systems and approaches in a day and then claim are crap thats the problem
10,000 hours..........
N
TA has to do with self fulfilling prophecies. So many traders apply TA that it works - if you understand how to apply it properly. You have to learn a lot!! TA helps you to get an advantage over the market, to have the odds to your favour. With proper money and risk management in place you can win. TA alone does not work, it's just part of a system!
Regards,
Thomas
Regards,
Thomas
If you are relatively new to trading, you may as well toss a coin and achieve better results imho
There are two types of traders:
1. when they lose they blame everything except themselves
2. they understand that they did something wrong and are trying to find it and avoid it in future.
With respect to all types of analysis,my opinion is that long-term traders have to have FA in their arsenal. Short-term traders and day-traders have to use TA as FA will not help them at all.
TA is not an easy. if it would be easy then everybody would be a winner and that is impossible - somebody has to lose money on the market so other can win them.
How do you know the odds are to your favor when using TA? This is too general of a statement you made.