- Technical analysis IS a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument
- TA are looking for better odds to give their trade set up an extra edge
3 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.
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Q: How does the writer define technical analysis?
A: The author defines it as such: “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.”
Q: What are technical analysts looking to identify in the market?
A: They are looking at patterns and setups that will make it more probable that they will execute a successful trade.
Q: How would you summarize the authors argument that technical analysis works?
A: As long as you use it as a risk management tool that can be used (in a disciplined way) to derive probabilistic, actionable, and risk-defined trading setups then technical analysis works.
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“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.”
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The main concept in TA is that history tends to repeat itself so technical analysts are looking for considerably reliable trends in the past which will most probably repeat in the present and thus figuring out when there are high enough chances of markets going either up or down.
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The more serious one takes TA - the more it will “work” for him.
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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?
Identify and execute a trade setup offering asymmetric Risk:Reward -
How would you summarize the authors argument that technical analysis works?
Technical analysis is a risk management tool which can help with trading setups on an instrument; it is all about probabilities (not an exact science), finding positive expectancy in the market (e.g. trends); technical analysis should not fight with fundamental analysis, it is a complement
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TA is a risk management tool that helps traders make probabilistic, actionable, risk-defined trades.
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TAs look for entry and exit points to increase the probability of of being profitable over enough trades.
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TA is a useful tool that helps disciplined and systematic traders, along with fundamental analysis, increase the probability of being profitable.
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- Technical analysis is the art of evaluating past historical data, in order to identify actionable , pre defined risk etup which has a higher probability over series of trades. so its kinda like a tool that helps you identify pattern, setup and the risk barometer for the setup to give you and edge over the market
2.its based on ones methodology , it could be symmetric or asymmetric trading setup which could give a higher probabilistic opportunity over the market of a consistent period of time, eg Pattern, Trend,
3.Technical analysis works when one becomes aware of their number, i am talking about risk per trade, risk to reward, where to enter and exit, discipline, patient t . all this help a person become a profitable trade
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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
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probabilistic, actionable, and risk-defined trade setups on an instrument
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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.
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- TA is the practice of analyzing the price history of an instrument in order to make actionable risk defined forecasts of its future price.
- TA users are looking to gain better odds for their trades, increasing their overall success.
- TA works, but it has to be part of an overall comprehensive strategy. Traders need to have discipline and systematically apply TA in a consistent manner that includes robust risk management.
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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
What are technical analysts looking to identify in the market?
What risk he takes on the market. What theoretical profits he can achieve. What loss is possible. Always 1% better and learn by making mistakes. Leave his ego outside. In the end it is a fight against yourself. Extract his feelings.
How would you summarise the authors argument that technical analysis works?
Technical analysis helps the trader better understand the market. To make his decision more profound. That he doesn’t take his feelings with him, but logic and reason and doesn’t completely neglect the macro situation. He should at least keep it in the background and include it.
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- The writer defines technical analysis as the practice of analyzing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price.
- Analysts try to identify risk:reward trade setups that they can execute thus providing gains.
- Technical analysis works when the trader’s goals are met and the analysis generates risk defined trade setups.
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#1. -the practice of analysing price history of an instrument in order to make " Actionable, risk defined"
forcast of its future price.
#2.- best probabiilistic entry and exit points to trade for max profit and/or minimal loss.
#3.- after adopting tech analysis , traders success rate improves then it works …however , the best success rates are achieved when risk-reward plan is designed and followed properly
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- How does the writer define technical analysis?
The writer defines technical analysis as the practice of analysing price history in order to create actionable probabilistic and risk defined trade setups.
- What are technical analysts looking to identify in the market?
Asymmetrical risk/reward setups that they would consider profitable.
- How would you summarize the authors argument that technical analysis works?
Technical analysis works for those who are disciplined enough and put in the right amount of hours to really understand the traded scenario, it’s a great tool, but as any other tool, it depends on the user and the manner that it is used.
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- 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 - What are technical analysts looking to identify in the market?
better odds and for their setups to render them profitable over enough trades - How would you summarize the authors argument that technical analysis works?
the aim is to identify and execute a trade setup offering asymmetric Risk:Reward
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TA is a tool to derive probabilistic, actionable, and risk defined trading setups.
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Identifying asymmetrical risk to reward trading setups.
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TA works as a complementary tool to fundamental analysis but is dependant on the discipline of the trader.
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- How does the writer define technical analysis?
The writer defines technical analysis as a risk management tool which is used to derive probabilistic, actionable and risk-defined trade setups on an instrument.
- What are technical analysts looking to identify in the market?
Technical analysts are looking for better odds and setups to render them profitable over many trades.
- How would you summarize the authors argument that technical analysis works?
Technical analysis works when asymmetric risk/reward trade setups are executed as trade strategy requirements are met. It favours traders who are systematic, selective, discipline, patient and create setups with statistically positive expectancy.
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Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument.
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Risk-defined trade setups.
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Technical analysis is a probabilistic risk management tool that can generate new trade ideas convert price forecasts into actionable trades
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How does the writer define technical analysis?
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?
identify and execute a trade setup offering the probability of a reward that is greater than the risk to get it
How would you summarize the authors argument that technical analysis works?
To say it works you don’t need to show TA can predict the future. You just need to show that it manages the risk to a point where the odds are in our favor and this is what TA does.
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- How does the writer define technical analysis?
- What are technical analysts looking to identify in the market?
- How would you summarize the author’s argument that technical analysis works?
Answer:
- TA is a risk management system that allows you to derive probabilistic, actionalbe, risk-defined trade setups of the instrument ( tradeable entity ).
- TA is helping trader to look for and identify positive expectancy in the market they trade.
- TA is an instrument, and instrument’s usefulness depeds on the user. TA works as long as your Risk to Reward ratios of your trades meet your trading goals.
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How does the writer define technical analysis?
A probabilistic risk management tool that can generate new trade ideas and convert price forecasts into actionable trades. -
What are technical analysts looking to identify in the market?
Identify and execute a trade setup with asymmetric risk-reward. -
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
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- As a risk management trade tool
- They look for trends, patterns and better entries
- I’ll summarise by saying that it works if the user is good and experienced with it, involves discipline and knowledge, has to be capable to be consistent on the plan
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