Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#81

  1. How does the writer define technical analysis?

    • Analyse the price history to predict, based on risk reward forecasts, the most probable trade setup.
    • to develop new trade ideas or to use them for actionable trades

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

    • risk-reward defined trade setups
    • identify higher odds to make trades profitable over time

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

    • systematic and selective trading is more likely to work
    • TA is not a price prediction tool but it can give a market edge to acomplish own goals
#82
  1. How does the writer define technical analysis?
    Technical analysis is the study of the price history of an instrument to make actionable, risk defined forecasts of its future price
  2. What are technical analysts looking to identify in the market?
    An edge to make a trade with a probabalistic outcome whilst looking at risk management
  3. How would you summarize the authors argument that technical analysis works?
    Analysis if carried out and implemented correctly does work. If analysed deeply enough with an exercise in patience and so as not to compete but set individual targets / goals to aim for then implement your strategy with reasonable probability and risk management can lead to successful trading
#83

  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. Price history, Future probabilities.

  3. Technical analysis works because you aren’t competing with someone else to be successful. When used properly, one can have success when achieving their targets/goals.

#84

#1 - How does the writer define technical analysis?
TA is a method, based on historical price action, to find a good trading setup with benefitial risk-reward stats

#2 - What are technical analysts looking to identify in the market?
They are looking to identify certain patterns with a high probability of hitting a defined price target

#3 - How would you summarize the authors argument that technical analysis works?
TA helps the trader to adjust his risk-managment, therefore it works

#85
  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.”

“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 traders are “looking for better odds and for their setups to render them profitable over enough trades.”

  2. When technical analysis is helping a trader identify beneficial risk/reward setups in the chart then technical analysis is working.

#86

Technical analysis is the practice of extracting a probabilistic, actionable, and risk-defined trade setups on an instrument.

Identify the Risk:Reward component of the setup, and translate that into an actionable trade decisions and strategies based on calculated risk.

As long as TA is used as an additional supplement to provide an insight into the trends in a data-driven manner, lowering the “monkey-brain” influence into the decision, and generate risk-calculated, structured and well-informed ideas about the buy/sell decisions, TA works.

#87
  1. Tool that works when used correctly
  2. Trend that can be used to predict future movement
  3. It works when applied after much research combined with other factors and proper risk management.
#88

1.Technical analysis is the practice of extracting a probabilistic, actionable, and risk-defined trade setups on an instrument.
2. They are looking to identify: probabilities, risk-defined trading setups on an instrument, new trade ideas and better odds.
3. TA has a chance to work at its best when is used with discipline and systematic approach. Stay open-minded, FA and TA knowledge can be blended into one strategy that can minimise that can improve chances of potential profit.

#89
  1. How does the writer define technical analysis? Answer: “… 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.” - CryptoCred 2018
  2. What are technical analysts looking to identify in the market? Answer: Probabilistic trends and patterns to generate new trade ideas and convert price forecasts into actionable trades.
  3. How would you summarize the authors argument that technical analysis works? Answer: The author argues it works because the requirements it has to meet for that to be true are not unreasonably high. Trade set up depend on ones definition of technical analysis and appropriate risk analysis tailored to set up an asymmetric risk/reward scenario whether doing personal or professional trading.
#90

[quote=“filip, post:1, topic:7681”]

  • 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
  • What are technical analysts looking to identify in the market?
    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
    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.
#91

The writer defines technical analysis as their own personal views and way of thinking for them-self, it works to make them a better trader. Technical analysts are looking to identify probabilistic risk management trades from past history. I would summarize the authors argument that technical analysis works cause the author personally uses technical analysis for themselves and it has bettered the authors trading in a risk management and disciplined point of view.

#92

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

  3. Technical analysis helps traders to identify risk and reward.

#93
  1. Technical analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades.
  2. Trade setups offering asymmetric risk/reward ratios.
  3. 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.
#94

1: TA is instrument used in trading world. Its based on things that has happened multiple times in the past and are likely to reoccurs again.

2: They aim to identify change in a trend or some patterns which they can trade with reasonable risk management.

3:TA definitely works but it takes time and practice to understand it properly, even though some things are unpredictable with ta like global pandemic.

#95

How does the writer define technical analysis?
From his conclusion section; It is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument

What are technical analysts looking to identify in the market?
“identify and execute a trade setup offering asymmetric Risk:Reward”

How would you summarize the authors argument that technical analysis works?
He first defines what ‘work’ means. Its not about predicting the future or out performing any professionals. If it helps traders identify and then trade setups with a greater risk to reward ratio, then it works. And the success of technical traders through decades prove that it can do that.

#96
  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 determine probability of risks and market sentiments.
  3. It’s not about others or being professional but rather a personal discipline and risk-taking.
#97
  1. How does the writer define technical analysis?

Technical analysis is studying the price history of an asset to make a actionable, risk defined, forecast, therefor, a good trade.

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

Trends that help the trader set better targets and stop losses.

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

It depends on the context of the situation. Someone who is disciplined and patient will trade better than someone who buys and sells sporadically in an unsystematic manner.

#98

  1. technical analysis is defines as a risk-management tool that can be used to derive probabilistic, actionable and risk-defined trading

  2. Probability of bullish or bearish swings. an asymmetrical risk/reward trade setup

3 As long as technical analysis helps traders set up asymmetrical risk reward trade then it works

#99
  1. Technical Analysis is the studying of historical data to make a risk informed decision about the future. Technical analysis doesn’t predict the future but helps define the probability and risk about future movements.
  2. Technical Analysts tries to identify the probability of success and risk assigned with them to plan a strategic move and gain an edge.
  3. Technical Analysis is good and many traders use it. However it is most effective when used in combination with Fundamental Analysis.
    Technical Analysis gives you the probabilistic chances of success.
#100
  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. Technical analysts are using a risk management approach to identify an actionable trade with a higher reward to risk ratio.
  3. Technical analysis works if you are dedicated, take the time to develop a strategy is risk-conscious and maintain a high level of self-discipline.