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The writer defines technical analysis as the practice of analysing the price history of an instrument in order to make actionable, risk defined forecasts of it’s future.
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To identify and to execute a trade setup offering asymmetric risk:reward.
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I would say that the author basically defines technical analysis is that it’s a tool to use to both check past and predict future trends based on analysis. It is not completely accurate but gives a level of probability for profit to be made.
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Hey @Bengtsson, hope you are well.
I think you confuse the assignments, the one you mention is for Ethereum 101, accounts model vs utxo model. But this topic is about TA & Algo Trading course, maybe you want to post your answers in the proper topic.
Carlos Z
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?
Historical price patterns and probabilistic, actionable, and risk-defined risk/reward trading setups.
3.How would you summarize the authors argument that technical analysis works?
As long as it helps traders identify and trade asymmetric risk/reward trade setups, it works.
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- “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” .
- Using statistical data to find repeating patterns.
- TA works if you have the knowledge, the patience and understand that it does not predict the future. It is a tool to identify posssible good trades with high probability of assymetric risk/reward.
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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” .-Cred
What are technical analysts looking to identify in the market?
Technical Analysts are looking to analyze the price history of an instrument in order to make actionable, risk-defined forecasts of its future price.
How would you summarise the authors argument that technical analysis works?
“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.”-Cred
Don’t asking or expect technical analysis to predict the future and be pragmatic with respect to your viewpoints on TA and FA. TA works if you are able to identify and execute a successful trade setup while optimizing asymmetric Risk vs. Reward.
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- How does the writer define technical analysis?
The writer defines technical analysis as a risk management tool that relies upon specific trade setups of a target price and stop rather than the practice of simply analyzing price history to predict the future price.
- What are technical analysts looking to identify in the market?
Technical analysts are looking for probabilistic trends in the market to base a systematic process upon.
- How would you summarize the authors argument that technical analysis works?
He is in support of technical analysis, but makes it clear that technical analysis can sometimes be misunderstood. According to him, not all methods of technical analysis are equal. The success of a specific method is reliant upon a trader’s goals. The writer makes it very clear that technical analysis relies upon systems in contrast to gambling and it works complimentary with fundamental analysis instead of contradicting fundamental analysis.
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How does the writer define technical analysis?
TA is the analysis of the price history of an asset to derive risk-defined trade setups. -
What are technical analysts looking to identify in the market?
They search for asymmetric risk/reward opportunities to find the best entry / exit in the market. -
How would you summarize the authors argument that technical analysis works?
TA need to be used properly to be useful. It requires some level of discipline and strategy.
TA and Fundamental Analysis is complementary.
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- The writer defines it as using data to create best guess assumptions on how an instrument will preform in the future.
- They are looking to identify trends that can create actionable trade information.
- You need to have some data to make a trade or to create a strategy even for automated trading. Using that data means you are using technical analysis.
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- “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”
- Propability of bullish/bearish moves
- If the trader is patience and discipline, trades with a set of rules, than TA will work.
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TA is a risk management, probabilistic, tool used to identify good risk:reward opportunities in the market using historical data.
Statistically positive opportunities where risk:reward is suite to the trader.
It meets most of the criteria in terms of proven track record by rational traders.
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As Risk management tool to identifies where the market is going to.
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Identifying the trend of the chart.
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Higher probability to have a successful trade with risk management.
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- “Technical Analysis” is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument*
- Technical Analysts are looking to identify and trade asymmetric risk/reward trade setups.
- TA doesn’t have to predict the future or outperform professional brokers. It can help spot trends to take a position and increase confidence in the ratio of reward/risk.
- How does the writer define technical analysis?
He defines it mainly as a risk management tool that can be used to derive trade setups on an instrument. - What are technical analysts looking to identify in the market?
They are searching for asymmetric risk/reward opportunities. - How would you summarize the authors argument that technical analysis works?
As long as it meets the goal described in the second answer, it will work when applying to your own situation, probably also combined with some fundamentals.
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1.- How does the author 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 forecast of its future.
In this sense, when it comes technical analysis we look at the price history in order to make possible instrument an order in an risk defined forecast.
Putting together these ideas, for the author technical analysis is a probabilistic rick management tool that can generate new trade ideas and also convert price forecast into actionable trades.
2.- What are the technical analyst looking to identify in the market?
We part from the premise that technical analysis is probabilistic, not an exact science. So in technical analysis we are looking for better odds, so the trades provide profit and return in a risk defined forecast.
What we are looking to identify patterns (levels, waves or indicators) that allow us to identify and execute a trade setup offering asymmetric Risk:Reward ratio.
3.- Summarize the authors argument that technical analysis works?
According to the author, technical analysis provide us with a tool that allow us to identify and identify a trade set up in a risk defined forecast offering asymmetric Risk:Reward ratio.
The author summarizes that it works because the requirements that it has to meet for it to be true are not unreasonable high, as far as it helps trades to identify and trade asymmetric risk:reward trade setups it works.
Must be taken into consideration that this is a tool, and for the tool to work properly the person who is operating with the tool (the trader) must be selective, organized and systematic. So even using the same tool, there will be a remarkable difference between a trader with discipline, patience and a set of trading rules and setup that provide a statistically positive expectancy versus one who lacks of these methodic rules.
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The writer describes is a trading on probalistics.
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To see patterns in the charts, which predict the future price of a certain product.
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There are traders with longterm, decades of success.
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The writer’s definition of 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.” -
Technical analysts are looking to get an edge and a positive probability in the markets they trade in.
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Technical analysis works because it is a risk management tool that requires discipline and looking at price history in order to make risk-defined and practical forecasts of a future price.
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- 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?
Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument. Is not about knowing/deducing the future price of an instrument. It’s about whether it can help a trader carve out an edge and a positive expectancy in the market(s) they trade.
- How would you summarize the authors argument that technical analysis works?
Technical analysis work if we are consistent and disciplined. We must define a strategy based on fundamental and technical analysis. Both are necessary and good market analysis tools that help us define a good strategy for operating in the market.
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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?
for better odds and for their setups to render them profitable over enough trades. -
How would you summarize the authors argument that technical analysis works?
Because technical analysis is a risk management tool for probable trading setups that can derive an advantageous position.
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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?
analysts are looking for better odds and for their setups to render them profitable over enough trades (asymmetric risk:reward trade setups).
How would you summarize the authors argument that technical analysis works?
When you as a trader focus on your own trading and profitability, your own reasonable goals and can identify and trade asymmetric risk:reward trade setups by taking trading seriously and apply the technique with patience and discipline, it will work.
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It is A) a tool to analyse price history to make predictable risk-defined forecasts.
Through discipline, patience and a set of trading rules, try and predict the next probably actions in what the price wil do and set up a risk-defined traded with a target and risk managemant.
It is not an exact science and it takes discipline, patience follwoing trading ruls to be succesful over the long term.
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