Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#582
  • 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. It is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades.
  • Technical analysts are using the tools of technical analysis to identify and execute a trade setup offering asymmetric Risk:Reward.
  • The author argues that technical analysis works, not because it can predict the future, but because it can identify trading situations which offer a good probability of a favourable risk: reward ratio, and which are actionable.
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#583
  1. The writer’s definition is as follows:

`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 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`

  1. Technical analysts are looking to identify and trade asymmetric risk:reward trade setups.

  2. To say that technical analysis works is to say that a tool as only as good as the person using the tool.

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#584

Technical analysis is a tool that is used for tracking trends and patterns in any given market. The data from this is used to make educated decisions on future investments.

The technical analysts are, looking for bullish and bearish trends, but in my opinion they are also looking for money flow which pushes the market up and down. Money in money out.

Absolutely technical analysts works , it gives you a grounding of where the market is, and can allow you to make an educated decision on future investments.

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#585

  1. How does the writer define 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?
    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?
    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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#586
  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 analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades. By using different set of tools the technical analyst can find a good strategy for entrance- and exitprice and also how to manage risk.
  3. It works but it also requires you to be disceplined and to develope your own trading strategy.
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#587

Reading Assignment : Technical Analysis Article

  1. TA is the practice of analysis price for risked-defined forecasts futures.
  2. Actionable, risked-defined trade setup.
  3. Technical analysis is a risk management tool used to derive probabilistic , actionable, and risk-defined trading setups of an instrument.
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#588
  1. Technical analysis is a probabilistic risk management tool that can generate new trade ideas and convert price forecasts into actionable trades.
  2. They look to be able to generate price forecasts on instruments and take action while managing risk.
  3. The author argues that it does work since by definition it isn’t saying that it makes you money it is saying that it provides systematic risk vs reward setup. This in turn is used by professional traders and is at the root of automated trading technology. Machines must receive inputs to execute on and those inputs are rooted in technical analysis.
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#589
  1. Writer defines TA 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. To identify a strategy with good probabillity edge to make more profits than lossess.
  3. Not to predict future, but to analyz what might happen, it is better to trade with risk managment,
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#590

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)
identify a strategic edge with increasing the probability of success whilst managing the risk.
3)
As long as it helps traders identify and trade asymmetric risk:reward trade setups, then it works.

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#591

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. Trade Analysts looks at identifying the higher probability with risk management
3. TA analysis works well when you apply research and risk management.

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#592
  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. Further,
the utility of technical analysis is best summarised as follows: technical analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades.

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

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.

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

The author basically determines whether TA work by answering the questio: “can technical analysis generate risk-defined trade setups?”
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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#593

  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. Entry points, stop losses, take profits etc.

  3. TA works but it’s more of a tool to compliment other skills and knowledge and TA is more of a risk management tool to help make a calculated risk or and educated trade.

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#594
  1. probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades.
  2. trends, patterns and opportunities
  3. he sets the bar of what TA needs to do quite low - help manage rist and provide ideas for actionable probabilistic trade setups. So to answer the question if it works, it depends on how well it is used
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#595

  1. How does the writer define technical analysis?
    In his there words, 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 traders, 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?
    Technical analysis IS a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument

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#596
  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. Technical analysts are looking for better odds and for their setups to render them profitable over enough trades.
  3. Technical analysis is about being selective and patient. Not all technical analysis is equal.
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#597

  1. How does the writer define technical analysis?
    *A trading discipline on which a trader focuses on on statistics and price history rather than the intrinsic value of a company.

  2. What are technical analysts looking to identify in the market?
    *Patterns base on history and statistics which are most likely to repeat.

  3. How would you summarize the authors argument that technical analysis works?
    *It is proven and tested base on trading history that certain patterns form in accordance with the sentiment of the market.

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#598

  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?
    According to the article 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?
    “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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#599

1. How does the writer define technical analysis?

The writer defines technical analysis as a risk management tool for trading.

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

They’re looking to identify probabilities in the market.

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

Technical analysis is not an exact science of the market. It is taking risk analysis and trends to help traders make better decisions.

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#600

How does the writer define technical analysis?

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. This in contrast to the classical definition of the study of price history to predict future movements

What are technical analysts looking to identify in the market?

They look to identify and execute a trade setup offering asymmetric Risk and Reward

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

TA is not about outperforming others, but helping a trader carve out an edge and a positive expectancy in the market(s) they trade. It is a tool to help the investor identify and trade asymmetric risk/reward trade setups

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#601

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.
OR
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?
I would summarize that technical analysis work but for better positive outcome should be following following; patientce and discipline is the key, individual should stick to the plan that works for him/her. Do not compare with professionals. From statistical perspective, good technical analysis must identify and execute a trade setup offering asymmetric risk:reward ratio.

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