Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#261

  1. 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.

  2. Technical analysts are looking to identify risk management that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument in the market.

  3. I would summarize the authors argument that technical analysis works in this way:
    He explains technical analysis as a tool - a tool is only as good as its operator.
    "Technical analysis is a probabilistic risk management tool that can:

  4. Generate new trade ideas.

  5. Convert price forecasts into actionable trades"

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#262

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

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

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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#263
  1. How does the writer define technical analysis?
    Its defined as, ”Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument”
  2. What are technical analysts looking to identify in the market?
    It’s about whether it can help a trader carve out an edge and a positive expectancy in the market(s) they trade.
  3. How would you summarize the authors argument that technical analysis works?
    Yes it works because:

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

When technicians are mapping out their levels/waves/indicators — whatever myriad of tools they use — the aim is essentially the same: identify and execute a trade setup offering asymmetric Risk:Reward.

Its contributes with this, whatever the trader then do. Buy, sell or dont trade at all. Technical analysis is all about getting the ”Risk:Reward if you do something”. It contributes with that, whatever the trader do.

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#264
  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. Trends
  3. A reasonable and consistent approach with good risk management and patience will get you profitable results.
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#265

  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 better odds and for their setups to render them profitable over enough trades.

  3. it helps traders identify and trade asymmetric risk:reward trade setups, then it works.

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#266
  • 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?
    It is looking to identify and trade asymmetric risk: reward trade setups.
  • How would you summarize the authors argument that technical analysis works?
    It works as long as it helps traders identify and trade asymmetric risk:reward trade setups. It doesn’t have to predict the future, nor must it outperform better-equipped professionals.
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#267
  1. How does the writer define technical analysis?

He defines TA as a tool to make decisions based on probabilities and risk managements methods.

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

Analysts looks for setups that provides a probabilistic edge to make successful decisions while managing risks.

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

TA provides useful information, but needs to be included into a personal strategy to provide good RR ratios. A comparison I like to do is trading vs poker : you could throw bets everywhere, it wouldn’t work very well. But calculate probabilities, include your holding and your behavior, and you can increase your chances of winning by a significant factor.

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#268
  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 . https://medium.com/@cryptocreddy/does-technical-analysis-work-fa90413a8328
  2. Technical analysts are looking to identify patterns in the market.
  3. If you agree upon the definition of Technical analysis put forth by the author, then it is very easy to summarize his argument thus: it’s not meant to predict the future, it’s meant to identify patterns and trends such that a person is better equipped to make trades.
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#269

1. How does the writer define technical analysis?
The writer thinks to define the technical analysis help us to make a better decision in the investment and risk management, through analysis of the price of past history.

2. What are technical analysts looking to identify in the market?
Identifying the trend and maximizing the profit.

3. How would you summarize the author’s argument that technical analysis works?
In simple words, technical analysis can reduce risk and make a profit if we read the chart properly.

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#270

Writer definition:
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 .https://medium.com/@cryptocreddy/does-technical-analysis-work-fa90413a8328

Technical analysts look for patterns in market history that can be used to determine probabilities for future events.

The writer argues that TA works because it allows traders to trade improved risk/rewards setups.

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#271
  1. How does the writer define technical analysis?
    Technical analysis is the practice of analysing price history. Chart don’t repeat but often rime, so by analysing the past we can deduce the future. So it isn’t a perfect science, we need to put the most chances on our side by following a patern that goes in our way more than the other.
  2. What are technical analysts looking to identify in the market?
    T.A analysts are looking for patterns.
  3. How would you summarize the authors argument that technical analysis works?
    T,A is not supposed to compete with professionals or firms. T.A is the action of putting probability by your side, trying to detect a pattern that goes in your way more often then it doesn’t.
    We can use Fundamental trading and T.A. One isn’t a bad thing and the other the best the best is to combine both.
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#272

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 asymmetric risk:reward trade setups that they can profit from.

3. How would you summarize the authors argument that technical analysis works?
Technical analysis is much more likely to work for traders who execute the tools properly and with lots discipline.

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#273

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 .

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

2. What are technical analysts looking to identify in the market?
They are looking to identify asymmetric risk:reward trade setups, it would include a target and identifying appropriate stop-loss (exit position to prevent further loss). It is whatever is appropriate for them and the strategy they have chosen, it is not about comparing against someone else.

3. How would you summarize the authors argument that technical analysis works?
TA works because the requirements it has to meet are not that high. However, it is a tool, and this means it depends on the users ability. As long as the trader is disciplined enough to stick to the plan that they have created to identify asymmetric risk: reward trade setups, it works.

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#274
  1. Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on instruments.
  2. TA analysts are looking to identify an edge to make higher probability trades while managing risk.
  3. In a nut-shell, it is all about personal risk management, “what risk do you feel comfortable with”?
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#275
  1. Ta is a risk management tool used for analysing the price history of an instrument in order to make actionable risk defined forecasts
  2. Better odds to assist them in making better trades
  3. Technical analysis works as it assists the trader in making better informed trading decisions
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#276

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

They are looking at maximizing their odds of predicting a profitable move in the market. But also doing the risk to reward management.

It works as long as you put the work and the hours in it. Be dedicated to your missions and tactics.

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#277

1.The writer defines technical analysis as a way of recognizing patterns in past data,
2.Technical analysts are looming to id trends and patterns in the graphs of previous stock performance.
3.The author puts forward the case that Technical Analysis works to the degree that the analyst in educated and the effort He/She is willing to put in.

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#278
  1. Technical analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades.
  2. Identify and execute a trade setup offering asymmetric Risk:Reward.
  3. TA doesn’t predict the future but helps you manage risk and helps you identify the probability
    of future price.
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#279

  1. How does the writer define technical analysis?
    Technical analysis is a trading discipline employed to evaluate investments and identify
    trading opportunities by analyzing statistical trends gathered from trading activity, such as
    price movement and volume.

  2. What are technical analysts looking to identify in the market?
    Analysts looks for setups that provides a probabilistic edge to make successful decisions
    while managing risks.

  3. How would you summarize the authors argument that technical analysis works?
    New in this sector but so far i know, if you use the TA(in total) right then you can provide
    very accurate price predictions. Also Use the right strategy and be aware of risk-
    management then it might work.

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#280

  1. The writer defines technical analysis as a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument.

  2. Technical analysts look for trends in technical price data to held derive new market positions in combination with fundamental analysis to better position themselves for trade, or at least to put statistical probabilities to their positions based on past performance.

  3. I would summarize it best as “it only works as well as you use it.” It’s more about how you implement it into your calculations as a trader, than it is black & white price prediction. The more persistent and dedicated you are to your analysis, the more you should expect to see positive returns in long term trading using consistent TA. He also argues how the point is not to outcompete Wall Street traders, rather to aid your own understanding of your trading by using numerical probabilities in your analysis.

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