Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#121
  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 trading setups on an instrument.
  1. 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 trade setups on an instrument.
  1. How would you summarize the authors argument that technical analysis works?
  • I believe he does that by saying it’s not something you can use to predict the future price, but instead set up some rules to follow and you’ll hopefully mange to reduce your losses.
#122

A: 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

A: . a target where they wish to take profit or close their trade and a stop loss where they wish to exit the losing position to prevent further losses

A: it is more of a guide to find a entry point and exit stratagy to know what you are willing to risk on a trade

#123

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?

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

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

When a trader who is more systematic and selective with his/her
own trading, than relying on bots or others trading styles, is more likely to be
successful than a trader that is not.

#124

  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. In TA you analys price history in order to be able to forecast a future price, it is all based on a probabilistic risk management.

  2. Statistical and probabilistic trends in the market that makes it easier to manage risk and reward.

  3. TA does not have to predict the future and does not have to outperform professionals. But TA can generate a risk-defined trade setup (a tool that helps the trader to make right decisions when used correctly).

#125
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

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

Trade setups with a favorable risk:reward

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

Because the bar is low, TA doesn’t need to be an oracle it just needs to provide a statistical advantage in identifying trades with a favorable risk:reward.

#126

  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 trading setups on an instrument

  2. What are technical analysts looking to identify in the market?
    Opportunities to create actions which could reward their insights and or prevent to loose more than needed.

  3. How would you summarize the authors argument that technical analysis works?
    When you see TA as not that it will predict the future but tells you what’s probably going on it can help you to do the the right things to prevent risk of or get profit.

#127
  1. The author defines TA not as a tool to guess the future price of an asset based on its past, but he defines it as a tool for risk management for trades on an asset.
  2. Posible trade setups based on patterns that suits their risk/reward expectations.
  3. TA is meant to give the trader a set of possibilities of future prices, in this case TA does work. But TA is not meant to tell what the future will be, in this case it won’t work. TA well done, and when using as many tools as possible, and maybe even cobining it with FA, can give a good idea of how risky, or how rewarding is to open a trade.
#128
  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. It’s all about how to identifying patterns in the market which has more chance of winning than losing.
  3. TA works if not try to competing whit others or predict the future, is to find an opportunity that has more chance to win based to your one strategy and risk management. If you have an entry and stop lose strategy clear defined that TA Works.
#129

  • How does the writer define technical analysis?
    Risk management tool, used to derive probabilistic, actionable, risk-deferred trade set up

  • What are technical analysts looking to identify in the market?
    Executable trade offering asymmetric risk-reward

  • How would you summarize the authors argument that technical analysis works?
    It gives a clear point of entry and exit based on the set goals

#130

  1. The practice of analyzing the price history of an instrument in order to make actionable risk defined forecasts of its future price.

  2. To identify risk management that can be used to derive probabilistic actionable and risk defines trade setups on an instrument

  3. A probabilistic risk management tool that can generate new trade ideas and help convert price forecast into actionable trades

#131
  1. As a tool that allows to make probabilistic, risk-adjusted decisions based on past event / statistics written in the charts. It’s not a crystal ball about future outcome.
  2. They’re analyzing the price history of the market. They look at price charts.
  3. Technical analysis works as a risk-adjustment tool in the decision making based on price history and deriving the probabilistic outcome. It is a tool and like every tool it is just as good as its user. It’s not magic and it demands discipline and a cool head as well. It’s is complementary to fundamental analysis. There is no either or.
#132

  1. The writer 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. Technical analysts are looking to identify and execute a trade setup offering asymmetric Risk:Reward.

  3. The author believes that technical analysis works because everyone is doing it in one way or another. Professionals use technicals in one way or another, like for example automated strategies. The requirements for the definition of technical analysis are not unreasonably high, in that this strategy doesn’t have to predict the future. Some technical analysis, with some discipline and a plan makes this strategy “work”.

#133
  1. ow 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?

It is looking to identify and execute a trade setup offering asymmetric Risk:Reward.

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

TA will work well in a combination of a thorough individual analysis+patience+discipline. It is good to enter the market with cold head and not to try to get superfast gains risking everything.

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#134

How does the writer define technical analysis?
Technical analysis is not analysing price history but is a tool used to create probabilistic, actionable and risk-defined trade strategies.

What are technical analysts looking to identify in the market?
Trends and possible opportunities.

How would you summarize the authors argument that technical analysis works?
There decades of successful technical traders and their success proves it can work.

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#135

  1. The writer defines TA as a risk management tool analyzing the price history of an instrument in order to derive probabilistic, actionable, and risk defined forecasts of its future price and access trade steps in line with such results.

  2. Technical analysts are looking to identify asymmetric risk:reward setups in order to profitably trade according to the results of their TA.

  3. I would summarize the author’s argument that TA “works” because all TA has to accomplish is successfully profitable trade set ups that meet the goals of individual traders without comparison to more well equipped traders or institutions.

#136

1.A way to make higher probability decisions
2.High probability , trends.
3.Its popularity

#137

1.“Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument”

  1. They are looking for bullish or bearmarket movments.

  2. I would say “it’s all about your own risk management”.

#138
  1. How does the writer define technical analysis?

Technical analysis is a probabilistic risk management tool that can:
i) Generate new trade ideas; and,
ii) Convert price forecasts into actionable trades and risk-defined trading setups on an instrument.

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

To identify and trade asymmetric risk:reward trade setups that probablistically determines a decisive actionable trades

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

I would summarize in agreement that technical analysis ‘works’ because it seems to meet certain truths that helps traders identify and trade asymmetric risk:reward trade setups.

#139

How does the writer define technical analysis?

  • Technical analysis is a probabilistic risk management tool that can
  1. generate new trade ideas
  2. convert price forecasts into actionable trades

What are technical analysts looking to identify in the market?

  • To find a trade in the market with a high probability to reach a target price with a low risk of losses

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

  • as long as you can define a asymmetric risk reward setup for a trade you want to make, it is likely you can profit from a trade. Therefore technical analysis works
#140
  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. price history
  3. That it works because it helps, it doesn’t necessarily guarantee a competitive advantage or specific results