Topic: Do you believe Technical Analysis? - page 6. (Read 1341 times)

Technical analysis places significant emphasis on using historical price data to forecast future price movements. But, it is important to note that future performance may not necessarily be influenced by past prices.

I had this same discussion with a group of friends and we realised this.

Market movement patterns are sometimes always almost the same. So if a pattern was formed in the past and then formed again now. So usually the market direction is always in accordance with the pattern formed. Chart Pattern is also something that we have to memorize in technical analysis. Because if a Chart Pattern is formed, it is often always in accordance with the technical analysis itself. So I really rely a lot on basic technical analysis. But I don't understand more complicated analysis.

Left to me, I believe in technical analysis. Technical analysis involve the use of candle sticks to determine the direction of the market. Have being in Forex market (BTCUSD) like wise crypto market, using pure technicals was favourable with a mix of price action, Put in consideration engulfing candles, doji, pin bars and others. With these candles pattern you can predict whether the market will go long or short and at the same time you have to be flexible because it can't always go in Ur direction.

Yes i believed technical analyses but very good to know fundamental analysis before first time so of somebody want to know about technical analyses than first need yo know as well fundamental analysis i hope.

the thing with TA is that despite the fact that it might not accurate, but if general traders out there are doing the same thing depending heavily on the TA itself then it will be like self fulfilling prophecy in which its gonna become effective because people make it effective, if majority are following TA guide book then you also follow it to know where the direction is going.
its just nowadays sometime the market are doing unexpected because the whales also know how to take advantage of these TA to favour their own interest.
so its not really perfect solution but sometimes it works, and with trading here, where everything is full of speculation, having thing that sometime work is already good enough.

Inaccuracy of TA would really be a big factor on which it would really be affecting your emotional aspect on which it would really be just that normal that you would be having those reactions on the time that you are
really that experiencing it on your very own eyes. Just like been said by most people on which it is really that relevant on making use of technical indicators and its impossible that you aren't wary that these things arent that precise but doesnt mean that it would be not relevant towards trading because this is the most common tool that would really be used on the time that you do touch up this space.

This thing feels like that you are really that walking in a road without having no lights on which you dont really know on where you would really be
going and this is really that something that you must really that needed to be learn so that you could really survive this market or else then you are just simply doing gambling
on which making up some guesses whether the price would be going up or down without any basis.

I think that the bigger cause of losses would be on the emotional side, than inaccuracy of TA. I am sure (if you have traded enough) you will know that the market not only can sometimes throw curveballs that force you to reevaluate your TA, it always throws curveballs that make you question your decisions and positions...a new trader will give in and constantly make adjustments because they are not completely confident in what they are doing and/or are fearful of losing capital. A seasoned trader knows that the best way to trade, is to set SL/TP and let all positions come to their final outcome.

If you wont really be making  yourself seeing those candlesticks  then how you would really be able to read out those charts and price behaviors? It is really just that hard to imagine for someone to make up some

trades but doesnt really make himself getting involved with some technical analysis aspects on which it is really that hard or impossible that you do make out positions out of nowhere. This is why it would really be just that right that you should really know the basic principles on how to make use of it because it would really be something so useful and something that could really be putting the advantage if you do have
the knowledge on how to set up those indicators knowing that the market is unpredictable but at least you could really be able to plot those possible price movement on which you could be able to observe.

Somewhat its not really that precise but at least you do already have the idea on what you should gonna do, comparing into those people who do just simply point out their fingers
and making some wild guesses on which its never been recommendable on having this way and its not really that something that could make you succeed on this type of career.

I definitely agree with your statement.

I mean, there is no secret formula that can guarantee a trader a 100% safe return and profit from their respective trades. If such technique or skill were to exist, then everybody would have been millionaires by this point and trading would be exploited.

Technical analysis is the skill where you incorporate all the intrinsic and extrinsic factors in determining and forecasting the price of a certain cryptocurrency. While it may not yield 100% guaranteed results, it gives you at least a basic understanding on what the current market situation is. In addition, this shows certain signs where it can affect your decision whether to invest on a certain crypto or not.

Candlesticks are a great chart tool, because it not only shows one price for one day, it also gives indication on how much the price moved during that day. Charts in general are a accumulation of past prices and their visualization let's already assume that there are trends. Historically we can observe that there are boom and bust cycles that influence prices. There isn't one asset that only rises or only falls in price. Volatility is a big part of trading and using technical analysis helped me a lot to find the right trading signals. The landscape of technical indicators is huge, we need to decide for ourselves which ones we want to focus on, because there can be conflicting signals. Short term trends can show the opposite direction of longterm trends and it's up to the investor on which signals to focus more. One issue with technical analysis is that the shorter the period we look at, the more noise will get into our analysis. That is why I like to focus more on medium to longterm trends, there the chance of falling for noise as a trading signal is much smaller. Also using multiple indicators to validate our analysis is a good approach. I would recommend anybody to mix technical analysis with fundamental analysis and not only rely on trading signal alone, better to double check our research before committing a lot of capital.

Besides, TA has been made not to become perfect as there is no such thing in trading especially, as we are a volatile market. But wondering why traders are using this. This means that even though it was not 100% accurate, still it gave us an idea of what we were going to do next. Of course, there is no perfection in trading and no matter how many years you've been doing this, losses still happen. But as long as you trust your doings and your TA, that seems a ticket to survival and profit.

Each kind of analysis plays a different role, each piece of research relates to a certain timeframe. Technical analysis can help you act on fundamental research that you have done at the right time, or identify the value of the instrument that you are analyzing.

Do I believe in technical analysis as a concept? Of course, it would be highly irrational to say that all activity is random and that chart triggers or patterns are always random and with no influence. Do I believe that it's highly accurate? That depends on how it is utilized. I agree with the first post that TA is not 100% accurate. This is a fact that a new trader should find quite quickly into their first try of TA

You dont need to believe the results from technical analysis nor the methodology, what you need to realize is that there are people that do. So the professor is right, it works because people think it does. They are great to find out what the current sentiment among traders is and might be coming but dont take it as gospel, probably the most important part of it. Overall theres so many factors when making a trade, TA is just one part of it.

Technical analysis has proven to be valuable tools in making future predictions and projections of the bitcoin market, and the most of them have been confirmed to be correct by experts, whom their predictions always work in the direction predicted. Professional traders have been employing technical analysis to stay in the market and get the most out of their investment in the bitcoin market. The market is quite volatile, and I believe that understanding technical analysis can help you minimise losses and take profit where necessary in the market. To my knowledge, becoming a trader necessitates extensive knowledge and understanding of the market's technical components.

I still don't know how trading would look like without technical analysis because these is one of the thing that makes trading very much comprehensive to traders so they can easily read the market without any much process. We can't always be looking for the appropriate news or how we are goinh to understand what the market is capable of doing when we depend only on fundamental analysis. There is need for us to also look at ways of understanding the market which we can get using the technical analysis to read and predict the possible movement of the market which can be through the previous charts, market patterns or structures or the use of indicators.

Indeed, TA is just a guide for traders but it helps a lot to know when to place buy/sell orders. Even though it was just a sort of market prediction but it is believed that this tool is quite necessary in trading if we wanted to earn. Many traders trade blindly and as we can see, they are experiencing more losses than those who use TA. It means that it was quite effective having this tool. However, losing is still possible if we don't understand it and the other thing is that if we can't manage to handle our emotions.

History does repeat itself and this inferences is what we derive from the charts in technical analysis. It’s been overly planted in the kinds of traders and becomes the course to follow when discovered.
This can only be affected when we have those big investors come into the game and some news although, news hardly play out in the crypto market.

Technical analysis remains a very vital form of analysis to getting a good idea about the direction of the market, good enough there are tools to tell who’s dominant in the market and how to utilize it in trading.

It’s better to follow some form of analysis than no analysis at all and technical analysis brings you closer to accuracy.

At least, Technical Analysis can help us to analyze several possibilities. And this analysis is still a prediction, it just depends on how closely our analysis is based on reality. And remember that no analysis or prediction will always be 100% accurate. Maybe there will still be a miss at some point. But at least with Technical Analysis, we won't blindly predict the market. At least, it will be close, so we can optimize the opportunities we have. If the market suddenly changes direction due to other sudden factors, then this is also an exception. For this reason, Technical Analysis is one method that can be used. Not the only one.

Whether you do close it or not but still you would really be that having no choice because if you wont really be making use of those tools and indicators then you would really be finding yourself that it is really that something relevant and something that cant really be just that ignored. Just like the rest been saying that we do know that this market cant really be having those news and sentiments that floats around
on which means that you would really be seeing that significant with those indicators or tools which you would really be needing to learn on how to make use of it.
You would soon realize that it is really really that something relevant or important that you should really knowing because you cant really be finding yourself to be that efficient with your trading
if you do just make out some blind trading positions on which it would really be causing that much potential problem which might cause into that losing of money on which this is something
that we dont really like to happen and this is why we should really be that careful on whatever things that we do tend to deal with. Be sensible and be that wise on handling yourself on this market.

Even outside the world of cryptocurrency, when there is involvement of a word called speculation, there is always a database to fall back to in order to have the idea of what to speculate. You cannot just speculate out of a thin air. There should be some tips of what has happened and how it will likely happen in the future and that is where history has to come in.

The technical analysis is all about interpreting history into a graphical form to be able to correlate the past with the present. This is a very strong to in making prediction in the crypto-currency market. However, this does not work alone, you need argument it with fundamentals. Both technical and fundamental analysis complement each other because it is what happens in the news that will begin to play out in the current charts. Also the chart shows you what will happen in the future depending on the psychology of the traders.