Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#623

  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. price history in order to develop a strategy to forecast its future price

  3. technical analysis helps to create risk defined trade set-ups. Not all TA is created equal and more selective traders seem to perform better than others.

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#624

  1. a system of making risk-defined probabilistic price forecasts based on historical data, ultimately a risk management tool

  2. TA users are trying to identify and trade on technical patterns that have asymmetric risk/reward profiles

  3. essentially he’s defining “works” as “gives the user a profitable edge” and goes on to illustrate how low of a bar that is to meet; i.e. as long as you’re disciplined/systematic, it will likely work (and in aggregate, it’s hard to deny that many of have already proven --at least to themselves, if not others-- that it works)

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#625
  1. How does the writer define technical analysis?
    Analyzing the price history to to create an actionable, risk defined forecast of future price.
  2. What are technical analysts looking to identify in the market?
    Trade ideas and actionable trades
  3. How would you summarize the authors argument that technical analysis works?
    It works if you’re disciplined and it works in combination with fundamental analysis. As long as it identifies trades with higher reward and lower risk, then it works.
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#626
  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. probabilities weigh risk percentages
  3. self discipline personal risk
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#627

  1. A probabilistic risk management tool which can do two things: A. Generate new trade ideas and B. Convert price forecasts into actionable trades.

  2. risk defined trade setups

  3. Technical analysis “works” because it is a tool which can identify possible setups for positive results in trading with probabilistic success.

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#628
  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.”

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

They are looking to define trade setups, these are effectively future price targets with associated invalidation points. So a trader will sometimes be able to identify, in the market, a time when he or she believes the price is likely to move in a certain direction and along with this, a price point to where, if the market retraces, his prediction can be invalidated and the position should be exited (a stop loss). The trader will also define a price target where profits will be taken.

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

That good technical analysis can provide asymmetric risk reward (better than 50/50) and therefore over enough iterations will be profitable.

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#629

  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. Analysing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price.

  3. If you take it seriously it works.

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#630

1. How does the writer define technical analysis?

According to the author of the blog, Technical analysis is not exactly about
predicting the future price of an instrument. Its a risk management tool to
derive probabilistic, actionable and risk defined trade setup of an asset.

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

Technical Analyst try be on the side of better odds of their setup to get the
most profit. They expect Their setup must offer a asymmetric risk reword ratio.

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

The author is not biased for TA. But rather he made the case in favor of TA
by providing convincing support for TA:

  • Trading is probabilistic. Which means, depending on the trend or what’s happening
    on the chart doesn’t guarantee anything but you can make an educated actionable
    decision.

  • Combination of FA & TA may help making a good decision. They are complementary.

  • Technical analysis is not predicting the future. Its probabilistic so there has
    to be well risk management setup.

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#631
  1. The practice of analyzing the price history if an instrument in order to make actionable risk defined forecast of its future price.
  2. Better odds and for their trade set up to render them profitable.
  3. I can say that the author’s argument is that technical analysis works because it a tool that can help mange risk: reward in a trade set up based on your own fundamentals.
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#632

:one: Technical Analysis is a tool which composes actional risk-managed strategies, based on information for historical patterns of price charts.
Technical analysis is not merely suggesting a price will go up or go down, and seeing how it goes. Rather, it looks at factors such as:

  • How much price will move over a given period, and where you should finalise profit.
  • Exit points where your best guess was wrong and price moves in the opposite direction to your actioned expectation.

:two: Technical analysts are looking for asymmetric risk vs reward opportunities to make positions in the market.

:three: In order to conclude whether technical analysis works or not, you have to define what working really means, and the inputs that go into being a TA trader.

‘Working’ can be as simple as answering whether technical analysis satisfies the criteria that historical chart patterns generate risk-defined trade setups.
In which case, the author agrees that TA does this.

If you are disciplined in making your trading decisions, and act closely according to a logical and thought-out risk-managed plan, you are more likely to have success employing technical analysis.

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#633

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?
Patterns so they can come up with different strategies that can offer
asymmetric Risk: Reward.

3-How would you summarize the authors argument that technical analysis works?
A trader should be discipline, patient and having a set of trading rules and setups that gives a statistically positive expectancy instead of punt anything like a gamble

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#634

  1. How does the writer define technical analysis?
    The writer defines it as technical analysis being the practice of analyzing the previous prices, by determining previous prices and trends he is able to make risk-defined decisions for the future prices

  2. What are technical analysts looking to identify in the market?
    Technical analysts are looking for trends to identify certain patterns to make a risk prediction.

  3. How would you summarize the authors argument that technical analysis works?
    Technical Analysis is a great tool to help you make risk decisions. It’s all about having a strategy and discipline when applying TA and all these skills will help you.

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#635

  1. Technical analysis is the practice of looking at the historical price of an asset and use it as a risk management tool in order to make an actionable and risk-defined forecast of its future price.

  2. Predict how a market might react in the future, based on previous verified behaviours, in order to create actionable (and profitable) trades.

  3. Technical analysis has been proven to work, when executed correctly, with a method. It is not about predicting the future high, or predicting future prices “better than others”, but it is about generating a reward to risk trade which works for you, based on the set of rules you analysed and set.

(I follow Crypto Cred videos and was positively surprised to see the first assignment was based on one of his article! :slight_smile: )

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#636
  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.
  2. What are technical analysts looking to identify in the market?
    It is to help a trader gain an edge and a positive expectancy in the market/s.
  3. How would you summarize the authors argument that technical analysis works?
    It should be used as a tool with trading to help manage risk.
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#637
  1. How does the writer define technical analysis? He defines.it as a probabilistic risk management tool that can generate new trade ideas and also create forecasts into (actionable) trades
  2. What are technical analysts looking to identify in the market?
  3. How would you summarize the authors argument that technical analysis works? Finding something that works best for you and being disciplined enough to be patient
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#638

1 How does the writer define TA?

TA is a risk management tool used so you can have the best possible results in your trades.

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

TA are looking to identify an edge to make trades with higher probability of success in the market.

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

TA cannot predict the future, however it can give higher probable outcomes in the market for success.

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#639

  1. How does the writer define technical analysis?
    Someone that does not just look at previous chart price history.

  2. What are technical analysts looking to identify in the market?
    Predictions on movement of stock price without randomly predicting gambling.

  3. How would you summarize the authors argument that technical analysis works?
    Indecisive over the effectiveness but values the sentiment in which the act of doing some form of technical analysis is a path to potentially better decisions.

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#640

-The writer define tecnical analysis as it is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument.
-TA analysts seek to identify an advantage to perform higher probability transactions with risk management.
-TA does not predict the future, TA is a set of tools used to build rules that help you identify higher probability trade setups along with risk management.

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#641

Technical analysis is the practice of analyzing the price history of an instrument in order to make actionable risk- define forecast of its future price

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#642

Tech analysis using myriad of tools to set up trade offering asymmetric
risk:Reward. Looking for target price target profit and price stop loss.

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