Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#644

1. How does the writer define technical analysis?

Technical analysis is analysing the price history of an instrument (cryptocurrency) in order to make actionable, risk-defined forecasts of its future price, which is then used for creating trading setups on the instrument based off of the forecasts. It is NOT trying to predict the future, NOR is it trying to be the “only tool you should use” when trading.

2. What are technical analysts looking to identify in the market?

They’re looking to identify trends in the market history that could help create new “trade ideas” and “convert price forecasts into actionable trades”.

3. How would you summarize the authors argument that technical analysis works?

Technical Analysis is a complementary tool that works best when used by traders that are disciplined and systematic in their research and trading strategies.

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#645
  1. Technical analysis is the practice of analysing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price.
  2. They are looking for better odds and for their setups to render them profitable over enough trades.
  3. It works for someone who takes it seriously (disciplined, systematic, etc.)
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#646

1 : TA is a tool to help in making calculated probabilistic trade decisions
2 : TA identifies trading opportunities that can help in maximizing profit while minimizing risk
3 : TA does not predict the future but can help in identifying direction it is one of many tooks that can be used to make trading decisions

#647
  1. How does the writer define technical analysis?

Technical analysis IS NOT analysing price history to gain knowledge of the future price of an instrument

Technical analysis IS a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument

  1. What are technical analysts looking to identify in the market?
    They are looking at signals to gives a probability of the next market direction

  2. How would you summarize the authors argument that technical analysis works?
    Technical Analysis is a risk management tool which uses probabilities, but it does not predict the future and should be used with fundamentals analysis.

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#648
  1. he defines T.A as a risk management tool that can be used to derive probalistic, actionable and risk defined trading setups on an instrument
  2. a trade set up offering asymmetric risk/reward
  3. as long as it helps traders identify and trade risk/reward set ups, it works.
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#649
  1. How does the writer define technical analysis?
  • technical analysis is the practice of analysing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price
  1. What are technical analysts looking to identify in the market?
  • identify and execute a trade setup offering asymmetric Risk:Reward.
  1. How would you summarize the authors argument that technical analysis works?
  • The author suggests as long as the analysis helps a trader identify and trade asymmetric resk:reward trade setups, the analysis works
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#650
  1. Analyzing the history of the instrument and managing risks to forecasts of its future price.
  2. Looking for better odds and for their setups to render them profitable over enough trades.
  3. If trading, then we should apply technical and fundamental analysis, as we’ve seen rug pulls happens almost everyday
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#651
  1. Price prediction of an instrument by analyzing historical data of the chart.
  2. They are looking to identify trends on the chart to find an entry in the market to minimize risk and maximize reward.
  3. TA is not about being able to see in the future and forecasting an instrument‘s price. It is about making profit by sticking to a trading plan in order to minimize risk and maximize reward.
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#652
  1. technical analysis is the practice of analysing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price .
  2. short answer to start would be trends in the market. second patterns in relation to the history.
  3. he was saying as a tool technical analysis works, but how someone applys that tool to there trades may or may not work based off the experience of the trader.
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#653
  1. Technical analysis is a form of investment valuation that analyses past prices to predict future price action.
  2. Technical analysts believe past trading activity and price changes of a security can be valuable indicators of the security’s future price movements, so they identify trading opportunities in price trends and patterns seen on charts.
  3. if we study the past of a security and there are patterns that repeats along the timeline. Technical analysis will help us to connect the past to the present and predict the future with trend lines, moving average and other tools.
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#654
  1. How does the writer define technical analysis?
    Technical analysis is the practice of analyzing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price
  2. What are technical analysts looking to identify in the market?
    they are looking to identify an edge to make higher probability trades with risk management.
  3. How would you summarize the authors argument that technical analysis works?
    He is saying that TA works, only because it meets the requirements which are not unreasonably high. TA does not predict the future, it helps traders identify and trade asymmetric risk/reward trade setups and then it works.
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#655

Hi everyone,

  1. TA is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument
  2. They try to identify a trade setup offering asymmetric Risk:Reward.
  3. It works as long as it helps traders identify and trade asymmetric risk:reward trade setups
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#656
  1. He defines it as a risk management tool to derive probabilistic trade scenarios.
  2. Technical analysis is used to define trends in a market
    3.Technical analysis works as a tool to define when a strategy is probabilistically profitable or not.
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#657

Homework - does technical analysis work

How does the writer define technical analysis?
Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument.

What are technical analysts looking to identify in the market?
Bearish and bullish patterns & trends

How would you summarize the authors argument that technical analysis works?
He summarizes that it works if you keep on your rules and strategy.

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#658

  1. writer defines TA as a probabilistic risk-defined trading tool to set up more profitable future trades

  2. looking to identify and trade asymmetric risk : reward trade setups

  3. TA does work, but only when : thorough research has been done before taking a risk-defined action, paired with moderate fundamental analysis To get a realistic and probable trade set up. (which can be done by anyone who takes the time to do so)

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#659

  1. Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument

  2. They are looking to identify and execute a trade setup offering asymmetric risk reward

  3. It’s not about predicting the future, it’s a tool traders use to setup higher probability trades along with lower risk management

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#660
  1. How does the writer define technical analysis?

Analyzing past price history to determine risk defined forecasts of its future price.

  1. What are technical analysts looking to identify in the market? Probabilities

  2. How would you summarize the authors argument that technical analysis works?
    Technical analysis can be an edge with defined risk, better used systematically and with discipline.

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#661
  1. How does the writer define technical analysis?

the practice of analysing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price

also

a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument

  1. What are technical analysts looking to identify in the market?

trade setup offering asymmetric Risk:Reward

  1. How would you summarize the authors argument that technical analysis works?

The author claims TA works because if used proprely it can identify trades with asymmetic risk reward ratios.

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#662

Does technical Analysis Work?

  • During the lecture, the writer defined 'Technical Analysis' as a risk management tool that can be used to derive probabilistic, actionable and risk-defined trade setups on an specific instrument. What we are trying to accomplish by using this tool, is reducing the uncertainty in the markets, and generating probable outcomes, so on we can use this to our advantage (getting some profits from the market movements).
  • The author's standing point of view is that it is helpful when reducing trading risk, but he emphasizes on

    that not being an exact science.

    So, in order for you to be successful using this tools, you should complement with fundamental analysis

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#663

  1. How does the writer define technical analysis?
    as a risk management tool to calculate a trade setup of an instrument using risk and probabilistic values. in a risk:reward ratio.

  2. What are technical analysts looking to identify in the market?
    not predict a future price, rather determine a trend and set targets and stop loss with an asymmetric risk-reward ratio in place

  3. How would you summarize the authors argument that technical analysis works?
    yes it works as long as trader is discipline, manage their asymmetric risk-reward ratio, minimize emotion, and don’t get stuck arguing technicals vs fundamentals; and not predict future price.

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