Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#361

1.Risk management tool used to derive probabilistic, actionable, an risk-defined trade setups on an instrument
2. Converts price forecasts into actionable trades for better odds with generating more profits
3. Helps identify an execute a trade setup offering asymmetric Risk to Reward, which isn’t an unrealistic requirement.

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#362

Homework 1/20/21 Does TA work?

  1. How does the writer define technical analysis?
    Technical analysis is the practice of analyzing the price history of an asset in order to make actionable, risk-defined forecasts of its future price. Also, technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an asset

  2. What are technical analysts looking to identify in the market?
    Looking to identify trends. Signs and signals of future price movement. TA is actively looking how to make (or at least no lose) your money.

  3. How would you summarize the authors argument that technical analysis works?
    I believe the author feels that TA works if you use it right, do your own research, use TA as a tool (not just one tool) and understand that while it can’t predict the future or determine with 100% probability which way a coin will pump in the short term, it can certainly help spot trends and patterns over a defined mid to long-term timeframe

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#363

  1. Author 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** .” Emphasis on actionable and risk-defined.

  2. Technical analysis is not an exact science, so rather the technical trader is looking for better odds that will give profitable trades over time.

  3. Technical analysis works in the sense that it lets the trader enter trades with a positive risk/reward exepcation. To work it doesn’t have to predict the future or outperform every other trader.

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#364

  1. How does the writer define technical analysis?
    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. What are technical analysts looking to identify in the market?
    It helps traders identify and trade asymmetric risk:reward trade setups.

  3. How would you summarize the authors argument that technical analysis works?
    Technical analysis is a risk management too that can be used to derive probabilistic, and risk-defined trading setups.

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#365

  1. The author argues that usual definitions of technical analysis focus mostly on the price history and price discovery aspect and do not incorporate the concept of risk management. CryptoCred proposes the following definition: “technical analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades”.

  2. They look to identify and execute a trade that offers an asymmetric risk to reward ratio.

  3. That using technical analysis profitably comes down to the discipline of the trader and the elements of risk management applied to their trading strategy.

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#366

  1. How does the writer define technical analysis?
    One of his definitions I like is: 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?
    The risks, trends, probabilities that influence the price movement of assets. Some indicators that are analyzed are volume, trends, waves, price history of the asset in order to setup strategies to make profit on an investment.

  3. How would you summarize the authors argument that technical analysis works?
    TA works as a tool of riskmanagement and of forecasting the probability of future price movements. It will work if the trader adopts a disciplined systematic approach to trading. It’s not gambling, but taking calculated risks based on data analysis and strategies.

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#367

  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?
    profitable setups

  3. How would you summarize the authors argument that technical analysis works?
    Once the scope and objectives of TA are defined, then it can be said that works, as a probabilistic risk management tool that can be used to do actionable, and risk-defined trading setups

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#368

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?

They are looking for better probabilities and for their setups to provide them with profit over enough trades.

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

Not all technical analysis is equal and that a trader who is more disciplined and systematic is likely to achieve better results than someone who is not. Also, technical analysis is not a competition to outperform professional traders, rather it is about the individual’s own goals and whether they are meeting those.

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#369
  1. Technical analysis is the building of statistical probable models using historical data.
  2. TA looks to identify trends.
  3. TA has a 60% chance (higher probability) of being correct through repeated data and patterns compared to Fundamental analysis that bases its moves through news on its intrinsic value.
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#370

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- They look for a strategic edge in order to increase the probability of success
3- Technical analysis works in the right hands, it all depends on the person using it, it requires continuous study, patience, and risk management. Only is a tool that will give you an edge when someone is reading the chart

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#371
  1. Technical analysis is the study of the prices and trying to determine, in a probalistic way, the future price with risk management
  2. It helps the trader to identify opportunity on the market with an asymmetrical rate of risk/reward
  3. Technical analysis aren’t the cristal ball of the market, It helps to look sign of possible opportunity
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#372
  1. How does the writer define technical analysis?

Its the act of researching historic trends that will be able to provide a reference in future trading.

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

What trends are taking place and how we can use them in our favor for trades.

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

Technical Analysis will give a ratio of probability and we place our bets on those probabilites.

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#373

  1. How does the writer define technical analysis?
    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. The key point is that it is a mechanism to mitigate the overall risk in a trade through assessing the probability of an outcome.

  2. What are technical analysts looking to identify in the market?
    Technical analysts are looking to identify specific trading patterns which might help help to assess the probability of the future trading direction.

  3. How would you summarize the authors argument that technical analysis works?
    The author makes it clear that technical analysis is not a crystal ball but only a tool to help a trader derive some kind of positive edge in their trades. The author also makes it clear that one has to approach technical analysis with discipline in order for it to be an effective tool.

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#374
  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

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

Patterns based on past action that point to probable actionable outcomes in the future.

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

It works based on probabilities and is not expecting exact results. As long as it helps traders identify and trade asymmetric risk:reward trade setups, then it works.

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#375

1- Its a risk mánager tool wich Also provides an action tickets.
2- wich one your great with.
3- throw the analysis we could know diferents scenearios. Its logic provides a Guide to a better decision

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#376
  1. How does the writer define technical analysis?
  2. What are technical analysts looking to identify in the market?
  3. How would you summarize the authors argument that technical analysis works?

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

2-. To identify and trade asymmetric risk/reward trade setups.

3.- TA is another tool that helps the elaboration and execution trades with better risk/ reward ratio.

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#377
  1. TA is employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity.
  2. TA can be used to find repeating patterns in the market and determine the probability of a statistical outcome.
  3. Volatility, Trends, Patterns, Volume, etc. can assist us in finding repeatable outcomes that we can then use to predict future outcomes with a higher degree of success.
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#378

  1. It is the practice of analyzing of an instrument to make actionable, and risk-defined predictions of future prices

  2. They are looking for probabilistic trade set-ups based on past market data

  3. Technical analysis works if used properly by the user. Technical analysis only provides data and reasonable probabilities of future price action. What a trader does with these data is completely up to themselves

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#379

Lesson 4-Reading Assignment: Does Technical Analysis work?

  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.
or
Technical analysis is the practise 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?

Technical analysts are looking for “better odds” and for their trade setups to render them profitable over “enough” trades = Identifying “probabilistic, actionable, risk defined trade setups”

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

Technical analysis works because as long as it helps traders identify and trade “asymmetric risk:reward trade setups”, then it works.

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#380
  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. Probability of bullish or bearish movement
  3. He said use both fundamentals and TA with discipline and that’s what works
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