Reading Assignment: Reading Assignment: Does Technical Analysis Work?

[Croyden]

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. TA are looking for probability of bull or bearish runs and decreasing or seeing risk management

3. Basically that TA works when you really understand it over long term rather than taking a punt. The writer also says that a retail trader can do well using TA vs the Professional trader. Basically spend time looking at TA and making your own rules to follow and analysing that

[Pattylion]

1)TA is defined as a risk tool for trading to identify the market .
2) Identify a strategic of the market if is bullish or bearish
3)TA is only a tool that helps to traders to identity the condition of the market ,not to predict future performance.

[Pufferfish]

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?

They are trying to find good entry points to the market and manage a risk-reward strategy to make profitable trades.

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

TA is not a crystal ball it doesn’t give you a price prediction. TA gives you tools to analyze and manage your risks in the market and make profitable trades. As a trader, you need to study and analyze the charts and stick to your trading plan.

[loumelb]

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. identify and trade asymmetric risk:reward trade setups

3. Technical analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades and is about whether it can help a trader carve out an edge and a positive expectancy in the market(s) they trade

[DarkoDvornic]

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 to identify an edge to make higher probability trades with good risk management.
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 aren’t to predict the future or that it must outperform better-equipped professionals. As long as it helps traders identify and trade asymmetric risk/reward trade setups, then it works.

[Furnt]

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? - Trends for profitable trades or more information to “win” on trades.

3. How would you summarize the authors argument that technical analysis works? If applied correctly and strategically it is a good tool for traders.

[m_tag8]

@filip

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”

@filip

What are technical analysts looking to identify in the market?

-new trade ideas

@filip

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

It’s a discipline that can help you with decision making but doesn’t work best for everyone.

[William_M]

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? setups that will give much greater rewards than the risk they are taking.
3. How would you summarize the authors argument that technical analysis works? it works if the person using the technical analysis sticks to their strategy and is well disciplined.

[c1cag1b3]

1. TA is risk management tool that helps to identify probabilities of market movements.
2. Identify and trade asymmetric risk:reward trade setups
3. Not all technical analysis is equal — it’s much more likely to work for someone who takes it seriously (disciplined, systematic, etc.) than someone who just takes a punt

[Maggie]

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

2.To identify and execute a trade setup offering asymmetric Risk:Reward.

3. Technical analysis works because its purpose is not to predict the future nor to outperform the professional traders; the trader wants to be able to generate probabilistic, actionable, risk-defined trade setups on an instrument, and technical analysis can achieve that. In addition, technical analysis works more effectively for traders with discipline, patience, and a set of trading rules and setups. Furthermore, it is wise to consider using both technical analysis and also fundamental analysis to make effective informative trading decision.

[manuel.simulescu]

1. technical analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades
2. technical analysis are looking for better odds and for their setups to render them profitable over enough trades.
3. technical analysis can generate risk-defined trade setups

[Juan_araujo]

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?
   Look for strategies and make them actionable, risk-defined forecasts of its future price.

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

The TA is another plus when you are considering investing in any project, it gives us a strategy based on the past cycles and an idea of when is a good moment to invest.

[Ville]

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. Risk reward ratio. Looking for profitably trading setups

3. TA is great tool for traders if they use good strategy as well

[Cryptomonk]

1. TA is a probabilistic risk managment tool.
2. It helps to derive probabilistic, actionable and risk - defined trade setups on an investment.
3. TA is a tool and works as good as you use it.

[ShutdownCB2]

1. 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. Its about finding Patterns based on Historical Data, that will give you an Edge when Trading.

3. His Argument is, that you can not predict what will happen in the future, but is like a Tool for Risk-
   Managent, if properly executed can give the Trader an edge in the Market.

[Denis_Petitclerc]

1. Practice of analysing the price history of an instrument in order to make actionable, risk-define forecasts of its future price.

2. Actionable, risk-define, outline target and stop lost exit.

3. Technical analysis is a probabilistic risk management tool that can, generate new trade ideas and convert price forecasts into actionable trades.

[J-P]

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. Technical analysts are looking for asymmetric risk:reward trade setups.
3. As long as the expectations of technical analysis are set on helping to identify risk calculated trade setups and not predicting the future, we can claim that it works. Also, it will work better for someone who takes it seriously and systematically.

[Dan_Damanne]

1. ‘Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument.’ So, it can be said that technical analysis isn’t just looking at price history to predict future price but viable opportunities to enter and exit the market so as to manage risk and increase probability of profitable trades.
2. To identify an edge in the market systematically that increases the success of trades.
3. If the argument of whether technical analysis works is asked in the context of the prior stated definition, then the answer is yes as it’s a tool that has and continues to aid many a trader from retail to professional. The measure of its success however is essentially connected with the strategy attached to the TA in question. Discipline, patience, and a set of trading rules to govern the TA have a higher probability of success than TA void of those variables. There’s often the debate of technical analysis vs fundamental however the two can complement each other rather than contradict each other so as to form an effective strategy.

[andor]

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. the aim is to identify and execute a trade setup offering asymmetric Risk:Reward
3. since the aim is only to identify trade setups with potential (which is relatively easy to achieve) and not to predict the future, it is working well.

[Aleksander]

1. Technical analysis in this article is described as a tool of risk management that can be used to derive probabilistic, actionable and risk-defined trading setups for a instrument.

2. Analysts look for trends of market direction. So based on data got from market, they define probability of direction to go.

3. According to the autor technical analysis works when it helps the trader to identify and trade setups with positive risk to reward ratio. It works much better when person using TA is disciplined and consequent on using it.