Reading Assignment: Reading Assignment: Does Technical Analysis Work?

[JimboSpice]

1. How does the writer define technical analysis?

The 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.”

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

According to this article, analysts attempt to identify opportunities for trade setups, maximising their reward and minimising risk.

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

The author of this article mentions that TA works sufficiently as it is not meant to create accurate future price predictions, but merely so long as it identifies trading asymmetric risk.

[Kae_Y]

• How does the writer define technical analysis?
  Risk management tool used to derive probability, actionable, risk defined trade
• What are technical analysts looking to identify in the market?
  Trade setup offering asymmetric risk/reward ratio
• How would you summarize the authors argument that technical analysis works?
  It doesn’t have to predict the future nor outperform professionals.

[Jasko_88]

Q1. How does the writer define technical analysis?
A2. The writer difined as a practice of analysing the price history of a instrument in order to make actionable, risk-defined forecaste of its future price.
Q2.What are technical analysts looking to identify in the market?
A2. The try to identify the bullish or bearish trend on the Charts to setup a trade with the right riskmanagement.
Q3.How would you summarize the authors argument that technical analysis works?
A3. Technical analysis is a probabilistic risk management tool that can generate new trade ideas and convert price forecasts into actionable trades.

[dudge17]

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 to identify an edge to make higher probability trades with risk management.
3. TA works but like anything it needs to be done properly and be understood properly. In simply terms, If done correctly you’ll have a higher probability of success that if you didn’t use it

[Troubadour]

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

2. The probability of Risk vs Reward.

3. It works for the retail trader if you are diligent with your practices, and each trade does not have to be compared with the other; its all about the personal goals of the trader.

[Ecore]

• 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 .

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

• How would you summarize the authors argument that technical analysis works?
  — Technical analysis IS NOT analysing price history to gain knowledge of the future price of an instrument
  — Technical analysis IS a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument.
  can technical analysis generate risk-defined trade setups?

In the authors mind, the answer is ‘yes.’

[Twistface]

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?
   looking for better odds for their setups to render them profitable over enough trades
3. How would you summarize the authors argument that technical analysis works?
   It helps traders identify and execute a trade setup offering asymmetric risk management and reward trade setups

[Jargo]

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. identify and trade asymmetric risk:reward trade setups
3. The author argues that by its very nature technical analysis is statistical and produces probability based results. The fact that it does produce these results of possibilities is in fact how it proves that it works.

[ChristianB]

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.

The technical analysis is probabilistic, not an exact science.

Technical analysis is not a method to logically deduce the future price of an instrument.

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 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.

[bkerneyel]

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. asymmetric risk
3. Technical analysis is a more structured and calculated system that has been effective in predicting the market prices.

[Obi]

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 traders, irrespective of whether they are discretionary traders or using some sort of automated strategy,
are looking for better odds and for their setups to render them profitable over enough trades.

3.)

• Technical analysis IS NOT analysing price history to gain knowledge of the future price of an instrument
• Technical analysis IS a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument

[barney]

Reading Assignment: Does Technical Analysis Work?

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

3. How would you summarize the authors argument that technical analysis works?
   It is more likely to work when more systematic and strategies are chosen wisely, because not all technical analysis are equal and the tool is as good as its user.
   The technical traders should take this seriously and apply discipline.

[muradawad]

1. As an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.

2. Bullish / Bearish movements of the market.

3. Technical analysis is a tool which helps the traders to calculate the next steps at the market.

[VincentC]

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?
Technical analysts are looking to identify probabilistic, actionable, and risk-defined trade setups on an instrument to generate new trade ideas and convert price forecasts into actionable trades.

3.How would you summarize the authors argument that technical analysis works?
Using technical analysis as a tool and having the discipline to know how to use it properly in conjunction with other strategies and tools can prove to be an effective solution to finding ones own actionable trading strategy.

[Ren]

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

2. Identify a strategic edge to increase the probability of success while managing the risk

3. Technical analysis works because the requirement it has to meet for it to be true are not unreasonably high. It’s not used to predict the future but helps the trader identify and trade asymmetric risk/reward trade setups.

[DJM]

Does technical analysis work?

1. How does the writer define technical analysis?
   • Technical analysis is the risk management tool that can be used to determine probabilistic, actionable and risk-defined trading set ups on an instrument.
2. What are technical analysts looking to identify in the market?
   • Historical patterns and trends that are indicative of possible or probable future price action in order to position trade set ups to implement strategies such as setting buy targets or stop loss levels.
3. How would you summarize the authors argument that technical analysis works?
   • It works because traders use it successfully when disciplined and implemented in a systematic manner.
   • Also, it is a complimentary tool in conjunction with fundamental analysis to time entry and exit from the market.

[mchoeti]

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?
They are analyzing the market and search for good opportunities to buy / sell. All predictions are based on patterns in the past.

How would you summarize the authors argument that technical analysis works?
When you have an systematic and disciplined approach it will work, because history will always repeat… ( in most cases)… But remember you have to use Technical analysis as a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument

[dsutter]

1. The writer defines technical analysis as: 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. With technical analysis, traders are looking to identify positive and actionable risk/reward trades.

3. The author proposes that technical analysis works because it is a probabilistic risk management tool that can help identify asymmetric risk/reward setups. The requirements are not unreasonably high.

[Corneile]

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 .

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

2. Technical traders, are looking for better odds and for their setups to render them profitable over enough trades. They are looking for an edge with TA to identify bullish and bearish trends in order to generate new trade ideas and convert price forecasts into actionable trades.

3. It is about Risk Management, using it as a tool to come to your own conclusion of predictive price and trade. The TA is dependent on the person interpreting the TA. TA can be used as an edge for higher probability trading

[AmonRa]

1. It’s a risk management tool in which we study charts with the help of various indicators to limit risks and thus increase the chances of making wiser decisions.

2. Identify and execute a trade setup offering asymmetric Risk-reward.

3. Traders must be systematic in their strategies, patient and selective.
   TA is not about forecasting or guessing the price of future markets.
   TA is not meant to outperform professional traders.