Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#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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#664
  1. practice of analyzing historical data of price action to make risk-related actions.
    2.historical data of price movement that repeats itself to make risk based decisions based on prior movement.
    3.It is a tool and does work if the trader has rules, discipline, and patience
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#665

  1. A tool for finding trends in the market by using historical patterns. This is done to “play the odds” and make a forecast of the likely priceaction.

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

  3. Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument and not about knowing/deducing the future price of an instrument

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#666
  1. Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument.
  2. Trends and patterns that replicate/repeat in order to find asymmetric risk trade opportunities, or in other words and edge in the market.
  3. I really enjoyed the article, I think it aligns with most well thought out traders perspectives. It’s a tool with immense potential/possibility but is only as good as the person using it, if taken seriously, strictly, and systematically an edge can be obtained, if not it might as well be gambling. It’s just numbers at the end of the day, setting up the most probability favored trades.
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#667
  1. How does the writer define technical analysis?
    • Analyzing the price history in order to make actionable risk trade based on the suspected future price
  2. What are technical analysts looking to identify in the market?
    • They are looking to identify statistical trends to replicate
  3. How would you summarize the authors argument that technical analysis works?
    • Technical analysis works if a patient/skillful trader is able to get an edge and get positive results on their trades. Essentially it works on the individual level for those willing to take the time to invest and make it work for them.
1 Like
#668
  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
1 Like
#669

  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.

  2. What are technical analysts looking to identify in the market?
    A trade setup, which offers asymmetric risk:reward in their favor.

  3. How would you summarize the author’s argument that technical analysis works?
    It works, because it can create risk-defined trade setups.

1 Like
#670
  1. Is a tool were you can analyzing the price in order to make decision.
  2. repetitive action to maximize profit on a trade
    3)technical analysis work because is real information on the candle and on the charts.
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#671

1. How does the writer define technical analysis?
Analizing price history in order to make predictions on the fututre price
2. What are technical analysts looking to identify in the market?
identify and execute a trade with a benefitial risk to reward ratio.
3. How would you summarize the authors argument that technical analysis works?
It works if it is done correctly and with good risk management.

1 Like
#672

  1. The writer defines technical analysis as “the practice of analysing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price.”

  2. Technical analysts are looking to identify the probabilities of price trajectories based on the patterns/trends of the current price action in order to get an edge on the market for their trades.

  3. Technical analysis is a risk management tool used to increase your probabilities of trading success. Those who are disciplined, patient, and focused on learning the strategies will increase their likelihood for profitability, but no trade is ever certain.

#674

How does the writer define technical analysis?
Technical Analysis is defined as the practice of analyzing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price.

What are technical analysts looking to identify in the market?
Technical analysts look to identify historical statistical trends and thresholds that would indicate instrument price movement.

How would you summarize the authors argument that technical analysis works?
I would summarize that the authors argues that technical works by giving the tools
to the trader to make risk-defined decisions to identify and execute a trade setup
offering asymmetric Risk:Reward.

#675
  1. How does the writer define technical analysis?

The writer defines technical analysis as a risk management took, making emphasis in that it is not a way to make price forecasts out of an instrument historic price statistics, but a tool that allows traders to plan trades with probabilistic basis in which profit taking and stop loss price levels are calculated and acted upon, thus managing risk in a suitable way to make the trader profitable over a certain number of trades.

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

Technical analysts are looking to identify through the analysis of price action good setups which offer asymmetric risk:reward setups through the use of a systematic and disciplined methodology based on the use of technical analysis tools.

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

Technical analysis works as long as the trader takes its activity seriously, defines a systematic strategy and remains disciplined while using all the available tooks and information that is available to take it’s trading decisions.

#676
  1. 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 as well 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?

“actionable, risk-defined” qualifiers

Technical analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades.

Rarely is a price forecast in itself enough to warrant a good, technicals-based trade. You are not able to determine whether one is bullish/bearish and end the analysis there.
Technical traders will also outline a target (where they wish to take profit or close their trade) and a stop loss (where they wish to exit the losing position to prevent further losses).

Thus, by adding additional parameters such as a target and stop, a mere price forecast turns into an actionable, risk-defined trade.

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

Technical analysis ‘works’ because it doesn’t have to predict the future, nor must it outperform better-equipped professionals. As long as it helps traders identify and trade asymmetric risk-reward trade setups, then it works, furthermore it is much more likely to work for someone who takes it seriously being disciplined, systematic, and having a good risk management strategy.

#677

  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”

  2. What are technical analysts looking to identify in the market?
    “generate new trade ideas ii) convert price forecasts into actionable trades”

How would you summarize the authors argument that technical analysis works?
It is another tool to predict the future. No one can predict the future of a stock or cryptocurrency with accuracy but it is possible to improve your odds of picking more winners and less losers.

#678

  1. How does the writer define technical analysis?

    The writer defines technical analysis as “a probabilistic risk management tool that can generate new trade ideas and convert price forecasts into actionable trades.”

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

    Technical traders are looking for better odds and for their profits to render them profitable over a sufficient number of trades.

  3. How would you summarize the author’s argument that technical analysis works?

    The author argues that technical analysis works, but the challenge lies in how it is defined. He first describes it as a probabilistic risk management tool that helps generate new trade ideas and turn price forecasts into actionable trades. He then clarifies that “working” does not mean outperforming professionals or predicting the future but rather identifying opportunities for optimal risk-reward trades. The author also emphasizes that technical analysis should complement fundamental trading and that its effectiveness depends on the individual’s skill and discipline.