Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#301

  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. A trade setup offering asymmetric Risk:Reward.

  3. The author states that TA works as long as it helps traders identify and trade asymmetric risk:reward trade setups and have an edge in the market they trade.

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#302
  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”.

In my opinion this author is essentially right, in the sense that technical analysis does not attempt, or should not be asked to attempt, to predict what the price action is going to be, but just to give enough probabilistic insights in order to make risk-adjusted decisions with discipline and sustainably.

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

Statistical opportunities with a higher probability of success than failure with regards to how the price has behaved in the past.

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

Technical analysis is a tool to make actionable and risk-defined forecasts of its future price. It is not about just predicting what the price is going to do in the future. You do not have to beat the professionals in order to become a profitable trader. Different types of technical analysis works for different types of traders. Both technical and fundamental analysis can be used together to make investment or trading decisions.

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#303
  1. Technical analysis is the practice of analyzing price history of an instrument in order to make actionable risk defined forecasts of its future price.
  2. Its about whether it can help a trader carve out a edge and a positive expectancy in the markets they trade.
  3. The way I understand the authors TA argument is when TA is used properly, so much knowledge is gained which will make for a better trade. Being focused, disciplined, patient, able to not bring emotion into the decision, amongst others. And be open to the whole space of trading where you use fundamentals along side with TA.
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#304
  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.
  2. What are technical analysts looking to identify in the market?
    It can help a trader carve out an edge and a positive expectancy in the market they trade.
    3 How would you summarize the authors argument that technical analysis works?
    Its a probabilistic tool in order to manage risk. It can generate new ideas for trading, and it can convert price forecasts into acionable trades
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#305

  1. The author describes Technical analysis is the practise of analysing price history in order to make actionable risk defined forecast of its future price.

  2. Price/price movement

  3. It definitely works but anyone tool is not to be used in isolation as TA is not an exact science.

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#306

1. How does the writer define technical analysis?
Technical analysis is the practice of analysing the price history of an instrument in oreder to make actionable, risk-defined forecasts of its future price.
2. What are technical analysts looking to identify in the market?
Technical analysts are looking to identify and execute a trade setup offering asymmetric Risk:Reward
3. How would you summarize the authors argument that technical analysis works?
It works as the requirements for that to be true are not unreasonably high. If it helps traders identify and trade asymmetric risk:reward trade setups, then it works.

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#307

  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. Technycal analysts are looking for setups that are good from risk-reward perspective and will potentially be profitable.

  3. ‘The tool is as good as its user’ is a great summary - if you’re a well-disciplined trader who has a strategy and follows risk management won’t blame technical analysis if something doesn`t play out. In contrast, traders who are more like gamblers tend to blame technical analisys for not ‘working’.

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#308

1 The writer define technical analysis as a probabilistic risk management tool that can generate new trade ideas and convert price forecasts into actionable trades .
2 TA are looking for better odds and for their setups to render them profitable over enough trades
3 TA works by helping identify trend and good to risk to reward ratio trading setups.

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#309

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

  1. Identify and execute a trade setup offering asymmetric Risk-Reward.

3.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.

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#310

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

What are technical analysts looking to identify in the market?
An edge to make a higher probability: technical analysis is a probabilistic risk management tool.

How would you summarize the authors argument that technical analysis works?
It’s about personal risk management. He says it doesn’t have to predict the future, nor must it outperform other professionals in the area as long as it helps traders identify and trade asymmetric risk/reward trade setups, then it works. He says discipline, patience, and a set of trading rules and setups that give a statistically positive expectancy is important versus one who throws up a chart on any time frame and looks to punt anything that looks like a bullish pattern.

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#311

  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. Technical analysts are looking to indentify a probabilistic risk that can generate new trade ideas and convert price forecasts into actionable trades.

  3. Technical analysis works as long as it helps traders identify and trade asymmetric risk:reward trade setups. It takes discipline, patience, and a set of trading rules and setups that give a statistically positive expectancy - define what the trend is and stipulate the conditions under which to get long. ‘The tool’ is as good as its user.

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#312

  • How does the writer define technical analysis?
    . The writer defines technical analysis as a probabilistic risk management tool that can turn price forecasts into actionable trade ideas.

  • What are technical analysts looking to identify in the market?
    . Technical analysts are looking to identify cyclic trends in the market so the next time the trend repeats they can take action.

  • How would you summarize the authors argument that technical analysis works?
    . He basically is saying that the question “Does technical analysis work?” basically means that yes you can make actionable probability based trade decisions based on your findings from technical analysis… Technical analysis by definition does not forecast the future and when most people ask this question that is what they are implying, If you use it at all in your decisions it works.

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#313

  1. " Technical Analysis is the practice of analyzing the price history of an instrument in order to make actionable, risk-defined forecasts of it’s future price".

  2. They are looking for an edge in the markets by putting probabilities in their favor. They do this by identifying historical patterns that lead to a change in market sentiment.

  3. Technical Analysis works for those who take it seriously and stick to a strict systematic approach to define good risk/reward opportunities that put probabilities in their favor.

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#314

  • How does the writer define technical analysis?
    They define it as reading the chart and seeing its history as a tool to make a choice that is risky and see what the future prices will be.

  • What are technical analysts looking to identify in the market?
    To find an edge that will help them get a profitable trade. Focus on risk vs reward.

  • How would you summarize the authors argument that technical analysis works?
    It works because everyone has their own goal that they need to accomplish and you don’t need a big machine to do technical analysis for you.

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#315

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

  2. What are technical analysts looking to identify in the market?
    To identify and execute a trade set up offering asymmetric Risk:Reward.

  3. How would you summarize the authors argument that technical analysis works?
    So the author states that the method works because the requirements it has to meet for that to be true are not unreasonably high. Meaning that you don’t need to outperform professional traders or predict the future you just need to identify and execute a trade setup that provides a asymmetric risk:reward.

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#316

  1. The writer defines technical analysis as a risk management tool that can be used to derive probabilistic, actionable and risk defined trades.

  2. Technical analysts are looking to identify favourable (asymmetric) risk/reward conditions.

  3. The author argues that in order to be successful at trading based on technical analysis, one must not outperform professional traders, instead one must exercise discipline and patience while executing a set of trading rules to setup statistically favourable trades.

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#317

  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 trading setups on an instrument

  2. 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

  3. How would you summarize the authors argument that technical analysis works?
    It works because the requirements it has to meet for that to be true are not unreasonably high and helps traders identify and trade asymmetric risk:reward trade setups

Joke: “TA works because is like the horoscope, it works if enough people believes it!”

Ivan: “TA works because a lot people trades with gut feelings without TA, but with TA you have a risk management tool”

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#318
  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.
  2. What are technical analysts looking to identify in the market?
    Technical Analysts are looking for better odds and for their trade setups to render them profitable over enough trades. The “trade setup” is identified and executed and it must offer an asymmetric RISK : REWARD (which essentially means that the reward is greater than the risk taken).
  3. How would you summarize the authors argument that technical analysis works?
  • TA is technique to help the trader meet his own goals
  • It doesn’t have to predict the future, nor does it have outperform the professionals
  • TA is considered to have worked as long as the reward is greater than the risk taken.
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#319

  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?
    Help to identify and trade asymmetric risk:reward trade setups

  3. How would you summarize the authors argument that technical analysis works?
    Each trader have its own targets and there’s no need for competition, there’s no need to predict the future, “As long as it helps traders identify and trade asymmetric risk:reward trade setups, then it works…”

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#320

  1. How does the writer define technical analysis?
    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?
    identify and execute a trade setup offering asymmetric Risk:Reward.

  3. How would you summarize the authors argument that technical analysis works?
    It works for individuals who take it seriously with discipline and systematic approach.

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