Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#101

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 risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument

Technical traders are looking for a statistical edge that allows them to win more often than lose.

TA forces the trader to establish a set of rules to his actions. It helps weed out emotions.

#102
  1. How does the writer define technical analysis?
  • For the writer, 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?
  • Technical analysts are looking to trade setups with a good risk/reward ratio
  1. How would you summarize the authors argument that technical analysis works?
  • Technical analysis is a tool that can help, it’s not exact, but is probabilistic. It can’t give a dogmatic forecast of the future but can help. Also, it could be a complementary tool of fundamental analysis, especially in long term.
#103

1. How does the writer define technical analysis?

The author defines it specifically as " Technical analysis IS a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument

I would define Technical analysis as a look at past data to form a probabilistic strategy in how to play the market with intent while also maximizing the odds for success.

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

They are trying to understand risk by looking at historical data and then convert this into new trade ideas with an actionable strategy.

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

The author makes it very clear that technical analysis is not a perfect science nor does it promise that you will beat other players. It does not promise an outcome. It simply works as a tool for creating an informed trading strategy and when you stay disciplined to that strategy, you have a high probability for success. It is difficult to say that it doesn’t work when there are many examples of individuals or institutions that have enjoyed a long history of repeated success by integrating technical analysis into their strategy.

#104

1 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. Technical Analysis are looking to identify an edge för better probalilyt trades in the long run.

3.It’s all about for you self find a risk managament set-up thatworkd for your trading in the long run.

#105
  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. previous price patterns
  3. he argues ta works and you should stick to setups peculiar to u.
#106

1 technical analyses is the practice of analysing the price history of an instrument in order to make actionable risk-defined forecast of is future price.

2 for better odds and for their set-ups to render them profitable over enough trades

3 it works if it can help identify and trade asymmetric risk/reward trade set-ups.

#107

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

  2. What are technical analysts looking to identify in the market?
    Answer: Can technical analysis generate risk-defined trade setups?

  3. How would you summarize the authors argument that technical analysis works?
    Answer: if your strength is in favor of TA over other methods of analysis, use that strength to make a probabilistic assertion on the movement of the price

#108

1. How does the writer define technical analysis? The author defines technical analysis as 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? They are trying to identify asymmetric risk reward trading opportunities in the financial markets.

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

#109

Technical Analysis is a tool that gives the trader an edge through weighing statistical probabilities .

It is not a way of predicting the future. It also does not compensate for bad trading strategies.

Technical Analysis can be used to complement other trading strategies such as Fundamental Analysis.

#110

  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?
    Technical analyst try to predice patterns, by position themselves on the position with higher probabilities of success. 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?
    Technical analysis is about discipline, patience and having a well define strategy. It can be measure against our own expectations of returns. It does not need to be in comparison of professional traders. It is about taking a position on the most likely scenario, waiting for the market to tell us the next move, not going against the market.

#111

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 risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument.

#112

He defines technical analysis as using the prediction of risk management on the balance of probabilities to trade

They are looking to manage risk/reward on their set ups.

It works as it is a tool that helps traders identify where and when to enter and exit trades whilst managing the risk.

#113

1. How does the writer define 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.
  • Is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument.
  • 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?
From my perspective, by looking into the historical chart of an asset to identify statistical trends that have a probability of replicate over time, then use those statistics to build a probabilistic outcome (a possible move in the future). Following into the article, we can see that as a “trade setup”, a set of rules, discipline and strategy that would help us to identify the next possible move on price of the market.

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

  • It does not predict the future, it helps to outcome the best results.
  • Automated strategies are not self-executed, with the right parameters from a TA, it will work.
  • Does not need to be a professional trader, as long as your TA works with your own strategy, we can said that is a valid analysis.
#114
  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.TA is used to interpret trends to maximize their future chance of predicting a price movement correctly.

  1. It’s about managing risk and it works if you’re truly dedicated.
#115

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 on an instrument
  • technical analysis is a probabilistic risk management tool that can
    • generate new trade ideas
    • convert price forecasts into actionable trades

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

  • They 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 (TA) can generate risk-defined trade setups
  • TA is used in automated strategies ( programming often includes technical analysis-based parameters )
  • As long as it helps traders identify and trade asymmetric risk:reward trade setups, then it 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)
#116

  • 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?
    bullish/bearish indicators and we are looking for places to close our trade and take a profit and places to exit without further loses

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

can technical analysis generate risk-defined trade setups? yes; technical analysis 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.

#117

  1. Risk management tool

  2. Looking for pattern in the price and looking for a possible strategy i.e a trend.

  3. It’s not a market predicted method. It’s more of a tool to locate a trend and potential opportunities on creating a method to make money 
 Open for students to further on this please x

#118

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?
Future price prediction

How would you summarize the authors argument that technical analysis works?
Its a tool you can use, and if you use it the right way, its clear you get more success than somebody who don’t use it.

#119

  1. Its a studying tool.

  2. By looking at the price rise or drop in the market each day.

  3. Its you’re own personal risk and putting in place a system that works for you.

#120

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 analysists are looking to identify trade set-ups.

3.) The authors argument that T.A. works is basically that it is a tool and like any tool it works when it is used properly.