Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#201

Hi All, new here and going to give my 5cents.

I have been fortunate enough to join a group of professional day traders that tought me how to day trade, I think TA is not just about charts but order flow, market sentiment, structure, order book. There are so many indicators and then there is the data that support strategies.
I am personally a major fan of orderflow trading and TA.

  1. Charting, looking for patterns that gets well respected. Understanding both the bullish and bearish sentiment and formulate a strategy accordingly. Then MOST OF ALL, risk management.

  2. Answered above.

  3. Current FA is screaming end of days, but the markets are pumping. How would FA assist with price action today? The markets are technically not connected to the investment for companies. They sold their shares to the public and do not profit from it. Market sentiment is what the buyer of stock from one person to another feels its worth. Thus there is a space for TA.

#202
  1. he has defined it by stating that 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. traders are looking to identify and trade asymmetric risk:reward trade setups.
  3. his points iyt that technical analysis is much more likely to work if you do it properly and take it seriously — like most good technical traders do!
#203
  1. Technical analysis is a risk management toll using probabilities. It also produces ideas of actionable trades.
  2. They are trying to find probabilities of future moves in the market.
  3. The writer concludes that technical analysis ‘works’ if you use it in an organized way and also don’t expect it to predict to future but simply to help identify trends and set up risk management.
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#204
  1. The writer defines technical analysis as a risk management tool to help make trade setups. He suggests that there is disagreement about the definition of technical analysis being merely a way of forecasting future price and argues that it can help make probabilistic and risk defined forecasts of price on which to place a trade.
  2. Technical analysts are looking to identify patterns and signals in the market that will give them a statistical edge.
  3. He argues that technical analysis “works” if what it is meant to do is help traders make risk informed decisions and not predict the future or do better than the competition.
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#205

  1. How does the writer define technical analysis?
    The writer defines it as a probabilistic risk management tool that can generate trade ideas and/or convert price forecasts into actionable trades.

  2. What are technical analysts looking to identify in the market?
    A setup offering asymmetric Risk:Reward.

  3. How would you summarize the authors argument that technical analysis works?
    It’s using price history to make calculable probabilities to where the price may go. It’s used as a tool and should not be the only tool used.

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#206
  1. How does the writer define technical analysis?

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

Furthermore, TA 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?

Technical analysts are looking for better odds and for their setups to render them profitable over enough trades.

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

TA works because the requirements it has to meet are not unreasonably high. It doesn’t have to predict the future, nor must it outperform other professionals. IT only needs to help its users identify and trade risk:reward trade setups.

#207

the writer defines technical analysis as a tool of risk management that can be used to help make probabilistic, actionable, and risk-defined trading setups on an instrument.

technical analysts are looking to identify for better odds and for their setups to render them profitable over enough trades in the market

I would summarize the authors argument that technical analysis works when the user takes it seriously and is discipline in his on system he made using the technical analysis

#208

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

  2. Technical analysts are looking for repeating patterns that have happened in the past in market price that have correlated with price action that has happened before

  3. The authors argument centres around the person behind the TA rather than the TA itself, he also says TA is not a price prediction tool but would give you an edge if used along with other risk-management tools

#209

  1. The writer defines it as: technical analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades.

  2. Technical analyst try to find patterns in the price data that gives them probabilistic edge when trading.

  3. Technical analysis is misunderstood as a tool that predict futures prices rather than a tool that gives you an probabilistic edge when trading and it can be paired with other trading strategies like fundamental analysis instead of competing with them.

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#210
  1. 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. Looking for new trade ideas and a means to convert price forecasts into actionable trades
  3. Basically not necessarily predicting the future of a market, rather analyzing the risks involved in making a decision to pull the trigger.
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#211

1)He defines it as the practice of analyzing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price.
2)Outline a target and a stop loss
3)He concludes that technical analysis cannot predict the future but it is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument. Besides, he also mentioned that technical analysis isn’t to outperform professional desks and firms but it is whether it can help a trader to carve out an edge and a positive expectancy in the market they trade-in.

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#212

  • 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 trading setups on an instrument to help a trader succeed in the markets that he trades.

  • What are technical analysts looking to identify in the market?
    Technical Analysts are looking for better odds and for their setups to render them profitable over enough trades.

  • How would you summarize the authors argument that technical analysis works?
    Technical Analysis works as long as it is meeting whatever reasonable goals have been set.

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#213
  1. As a risk-management tool to find good setups and entry points for your trading strategy
  2. Opportunity
  3. They give you an edge if you have discipline and look for the right indicators at the right time, not just jump on everything that has a slight chance of being a bearish/bullish indicator
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#214
  1. How does the writer define technical analysis?
    The author defines technical analysis as a risk management tool that allows to derive probabilistic actionable and risk-defined trade setups on an instrument.
  2. What are technical analysts looking to identify in the market?
    Technical analysts use their tools to identify and execute a trade setup offering asymmetric Risk:Reward.
  3. How would you summarize the authors argument that technical analysis works?
    The author outlines that the technical analysis is a risk management tool. The tool is as good as an analyst using it. TA is not to predict the future but to help derive the trends an build trading strategies. TA is not the only tools and it is always better to be compliment analysis with other techniques and methods.
#215
  1. How does the writer define technical analysis?

The author defines technical analysis as a risk management tool that allows one 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 for indicators to support an asymmetric risk reward position on an instrument.

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

The tools and techniques are only as effective as the person using them They give points of reference and can compliment other forms of analysis on an instrument.

#216
  1. Tech.A is a risk management tool used to create probabilistic actionable data.
  2. possible asymmetric gains
  3. It works just as good as any other tool, the user defines its potential.
#217

  1. A practice of analysing past price performance in order to make actionable forecasts of future price.

  2. A trade asymmetric risk:reward trade set up.

  3. TA works because it helps the trade identify carve out an edge and a positive expectancy in the markets they trade.

#218
  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?
    Technical traders, are looking for better odds and for their setups to render them profitable over enough trades.
  3. How would you summarize the authors argument that technical analysis works?
    Technical analysis ‘works’ because the requirements it has to meet for that to be true are not unreasonably high. 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.
#219

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?

They are looking to identify trends and data important for the selection of an actionable forecast as mentioned above.

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

They seem to summarize it as, Definitions/Clarifying - Defining Rules/Inputs for “success” - GIGO - Fact vs Emotion (Deliverable good/services/achievements/project progress VS the emotional ride of going on the wave)

#220
  1. How does the writer define technical analysis?

According to the writer, he defined 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.

He felt that actionable and risk-defined trades setups are important in a good technical analysis. He also emphasize that technical analysis is probabilistic, it is not a crystal ball.

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

According to the author, as long as it helps traders identify and trade favourable risk:reward trade setups, then it works.

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

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

Whether somebody can be a good technical trader depends on various factors such as

  • He or she must take the price levels (buy limit, sell limit, stop loss, take profit etc) derived from technical analysis as being probabilistic not exact levels (in fact these price levels will change over time)
  • He or she must execute the same strategy consistently, systematically and relentlessly. The profitability will emerge only over a longer time horizon.
  • He or she must have some basic awareness of fundamental analysis and a balanced view of the situation.