Topic: Does Technical Analysis Really Work? - page 4. (Read 946 times)
All the analysis gives us valuable insight about the market condition so that we can develop strategies to get a positive outcome. It's not easy to do technical analysis properly but if you can do that it will increase your success rate. With technical analysis and news event we can make a good profit in any market condition.
Technical Analysis works quite fine, but trading is not only about the technical side of it, basically trading base on what you see on the chart, else everyone will be milking the market, there are a couple other things that help you succeed in this market, such as paying attention to the news, manage risks, control greed, have patient with trading set ups because trading is a waiting game because the market is reactive one base on what you see and not predictive. Technical Analysis only helps you to see what is likely to happen in the future and you should react when the scenario has started to play or have given you a clear signal.
So true. As a crypto trader, the use of technical analysis is very helpful in predicting prices in the market. Many traders use crypto patterns or cycles to analyze charts to make price predictions so it is easy to read market structure and know which way the market is moving. This should also be accompanied by always following the news so as to provide a higher chance for your trade to turn green. Once you know the structure, all you need to do is minimize the risk. But seriously, technical analysis is just a tool. This is not a magic ball that can predict the future, what drives prices is a combination of technical, fundamental and macroeconomic analysis. Technical analysis is good but as a trader who is not sure about it, it will do you some good if you leave the complicated chart patterns behind and stick with the basics such as understanding candlesticks, support resistance, volume, and momentum.
I am of the opinion that every trader especially beginner trader should use basic technical analysis principles together with fundamental analysis or other strategies as they have shown overtime to be able to offer insights into market sentiment, but it is not advisable to rely mainly on technical indicators. My conclusion is yes, technical analysis works but they are ineffective as a standalone trading strategy.
I am of the opinion that every trader especially beginner trader should use basic technical analysis principles together with fundamental analysis or other strategies as they have shown overtime to be able to offer insights into market sentiment, but it is not advisable to rely mainly on technical indicators. My conclusion is yes, technical analysis works but they are ineffective as a standalone trading strategy.
I Understand what you say. I need to focus more details in the trade. Thanks for your attention,
Technical analysis is good but as a trader who is not sure about it, it will do you some good if you leave the complicated chart patterns behind and stick with the basics such as understanding candlesticks, support resistance, volume, and momentum.
I am of the opinion that every trader especially beginner trader should use basic technical analysis principles together with fundamental analysis or other strategies as they have shown overtime to be able to offer insights into market sentiment, but it is not advisable to rely mainly on technical indicators. My conclusion is yes, technical analysis works but they are ineffective as a standalone trading strategy.
I am of the opinion that every trader especially beginner trader should use basic technical analysis principles together with fundamental analysis or other strategies as they have shown overtime to be able to offer insights into market sentiment, but it is not advisable to rely mainly on technical indicators. My conclusion is yes, technical analysis works but they are ineffective as a standalone trading strategy.
Technical Analysis works quite fine, but trading is not only about the technical side of it, basically trading base on what you see on the chart, else everyone will be milking the market, there are a couple other things that help you succeed in this market, such as paying attention to the news, manage risks, control greed, have patient with trading set ups because trading is a waiting game because the market is reactive one base on what you see and not predictive. Technical Analysis only helps you to see what is likely to happen in the future and you should react when the scenario has started to play or have given you a clear signal.
Greed is one of the ways we can trade in the market and keep complaining that we are not making any profits from the market.
If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.
Technical analysis is important for traders to analyze the market but some people will trade and be losing in trading no matter the technical analysis and strategies they are using. Trading is not for everybody. If someone is losing in trading and trying ways to make money but seeing it not working and losing at long time, the person should quit trading is what that is best for the person. Trading is not easy as we think and the emotion we talk about is not easy to control at all. Thinking of trading can even be related to greed because traders prefer to look for money in short period of time like within some minutes or hours. Holding is better and holding means someone do not have greed like traders.If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.
Having patience and positive attitudes towards trading contribute also to the success of trading. If one is patient enough not to trade when the market is not favorable to trade, then he might control or minimize his losses if ever.
Greed is one of the ways we can trade in the market and keep complaining that we are not making any profits from the market.
If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.
Technical analysis is important for traders to analyze the market but some people will trade and be losing in trading no matter the technical analysis and strategies they are using. Trading is not for everybody. If someone is losing in trading and trying ways to make money but seeing it not working and losing at long time, the person should quit trading is what that is best for the person. Trading is not easy as we think and the emotion we talk about is not easy to control at all. Thinking of trading can even be related to greed because traders prefer to look for money in short period of time like within some minutes or hours. Holding is better and holding means someone do not have greed like traders.If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.
Sure technical analysis works in all types of markets both cryptos,Fx and the stock market.It is the key tool when it comes to analysing any market situations it also helps in gauging the market direction. Technical is most a times more accurate than indicators.
Greed is one of the ways we can trade in the market and keep complaining that we are not making any profits from the market.
If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.
Technical analysis is important for traders to analyze the market but some people will trade and be losing in trading no matter the technical analysis and strategies they are using. Trading is not for everybody. If someone is losing in trading and trying ways to make money but seeing it not working and losing at long time, the person should quit trading is what that is best for the person. Trading is not easy as we think and the emotion we talk about is not easy to control at all. Thinking of trading can even be related to greed because traders prefer to look for money in short period of time like within some minutes or hours. Holding is better and holding means someone do not have greed like traders. If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.
No one knows how the crypto market will move so that means that technical analysis will only work about 50% of the time and I think that's the most generous percentage of it's effectivity, some have said that it's not going to work at some point and I do agree that it can happen because sometimes things are just so volatile that it's difficult to follow by the book.
Technical analysis alone will not create full effectivity, that’s why fundamental and sentiment analysis should also be highly considered. Now, since the market is highly volatile that makes it very unpredictable to predict, sentiment analysis will come in. That will help you not to be emotionally attached to your trades, knowing trading at some point certainly fail that may result into losing of funds. But if you really aim for a highly positive trading outcome, never just focus on its technicalities and fundamentals, know the worth of your sentiments so that you will not regret losing your trades because you are too much focused on your greed on profits.It is true that controlling greed in trading is very difficult. It reduces the amount of profit and increases the amount of loss.
If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.
Reasonable. They are also looking for profit in market.. 
Hockey is also there but it doesn't always come all the time. Yes. In general, technical analysis is also necessary and the most important thing is the timing of market entry and that starts from graphical data and repeated events that we can see, both the pattern of changes in one week, 4 days and 4 hours and that is controlling the price movements and The main thing is to monitor the BTC price first. Apart from that, USDT savings are also required, at least always in our trading account.
Hockey is also there but it doesn't always come all the time. Yes. In general, technical analysis is also necessary and the most important thing is the timing of market entry and that starts from graphical data and repeated events that we can see, both the pattern of changes in one week, 4 days and 4 hours and that is controlling the price movements and The main thing is to monitor the BTC price first. Apart from that, USDT savings are also required, at least always in our trading account.
From what I have read from your post, it's about the psychological mindset that is set on the "market psychology" not with your personal or self mind when it comes to disciplining and managing your assets/resources. Mindset is one of the things that you would consider if you ever are interested in being successful in trading.
So you need to understand both stances.
I think there are more technical terms but I can't think of it right now. You really need just to understand how the market would lean or go to and with the self psychology, it would be the controlling of your emotions.
It plays with the technical analysis. It has roles that you need to consider as well.
So you need to understand both stances.
- Market Psychology
- Self Psychology
I think there are more technical terms but I can't think of it right now. You really need just to understand how the market would lean or go to and with the self psychology, it would be the controlling of your emotions.
It plays with the technical analysis. It has roles that you need to consider as well.
Market Psychology: What is the way to understand it? Or market psychology can be understood through technical analysis.
In fact I have been lagging behind for the past six months. Trying to understand know it is not possible to learn or master it in such a short time. But of course I need a better way.
Perfect answer. Thanks dear for your Explanation ,
No one knows how the crypto market will move so that means that technical analysis will only work about 50% of the time and I think that's the most generous percentage of it's effectivity, some have said that it's not going to work at some point and I do agree that it can happen because sometimes things are just so volatile that it's difficult to follow by the book.
Technical analysis alone will not create full effectivity, that’s why fundamental and sentiment analysis should also be highly considered. Now, since the market is highly volatile that makes it very unpredictable to predict, sentiment analysis will come in. That will help you not to be emotionally attached to your trades, knowing trading at some point certainly fail that may result into losing of funds. But if you really aim for a highly positive trading outcome, never just focus on its technicalities and fundamentals, know the worth of your sentiments so that you will not regret losing your trades because you are too much focused on your greed on profits.It is true that controlling greed in trading is very difficult. It reduces the amount of profit and increases the amount of loss.
In my opinion, technical analysis works as long as the manipulator allows it to. The manipulator knows very well how to manipulate charts and crowd sentiment. That is why you cannot blindly trust technical analysis. You should treat it as a kind of auxiliary tool, which shows with a certain probability the further price movement (but you should always lay a straw).
Yeah I understand. Thank you.
No one knows how the crypto market will move so that means that technical analysis will only work about 50% of the time and I think that's the most generous percentage of it's effectivity, some have said that it's not going to work at some point and I do agree that it can happen because sometimes things are just so volatile that it's difficult to follow by the book.
Technical analysis alone will not create full effectivity, that’s why fundamental and sentiment analysis should also be highly considered. Now, since the market is highly volatile that makes it very unpredictable to predict, sentiment analysis will come in. That will help you not to be emotionally attached to your trades, knowing trading at some point certainly fail that may result into losing of funds. But if you really aim for a highly positive trading outcome, never just focus on its technicalities and fundamentals, know the worth of your sentiments so that you will not regret losing your trades because you are too much focused on your greed on profits. 
From what I have read from your post, it's about the psychological mindset that is set on the "market psychology" not with your personal or self mind when it comes to disciplining and managing your assets/resources. Mindset is one of the things that you would consider if you ever are interested in being successful in trading.
So you need to understand both stances.
I think there are more technical terms but I can't think of it right now. You really need just to understand how the market would lean or go to and with the self psychology, it would be the controlling of your emotions.
It plays with the technical analysis. It has roles that you need to consider as well.
So you need to understand both stances.
- Market Psychology
- Self Psychology
I think there are more technical terms but I can't think of it right now. You really need just to understand how the market would lean or go to and with the self psychology, it would be the controlling of your emotions.
It plays with the technical analysis. It has roles that you need to consider as well.
Market Psychology: What is the way to understand it? Or market psychology can be understood through technical analysis.
In fact I have been lagging behind for the past six months. Trying to understand know it is not possible to learn or master it in such a short time. But of course I need a better way.
In my opinion, technical analysis works as long as the manipulator allows it to. The manipulator knows very well how to manipulate charts and crowd sentiment. That is why you cannot blindly trust technical analysis. You should treat it as a kind of auxiliary tool, which shows with a certain probability the further price movement (but you should always lay a straw).
In which case technical analysis is not enough.
Technical analysis works but knowledge of technical analysis is not what is only needed before you can start trading. You need understanding of trends, market structure, moving average etc and then master the psychological side of trading. If a trader master 99% of psychological side of trading and does not understand the 1% of technical analysis, they will still not be successful traders. As a new trader you have to understand all angles and sides of trading is important and generally necessary for your success as a trader, we do not have to pay less attention to one side of trading and expect to become very successful. if you must be very successful as a trader you must pay attention to all aspects of trading both psychologically and technically. 
No one knows how the crypto market will move so that means that technical analysis will only work about 50% of the time and I think that's the most generous percentage of it's effectivity, some have said that it's not going to work at some point and I do agree that it can happen because sometimes things are just so volatile that it's difficult to follow by the book.
50% is just an assumption, it is even lower or higher than that. Not because people did not know or know about TA but also due to the unpredictable market trend. That is why trading is risky and hard as we can't make a perfect call even if we are trading for a long period. This means that using TA or any trading tools never assures a secured profit, we can be wrong and we possibly lose because of the market volatility. If OP is suffering and having difficulties in making analysis, it may be he is not yet good, he possibly needs more time and experience. TA is just another tool in the toolbox. Let’s say you are a carpenter. Does a carpenter only use a hammer? No, he has many other tools to shape/fix furniture. TA is just like that. It gives you an idea of where the markets are but it is not the only tool you should depend on. If you only use TA to make your decisions then it won’t do you any good. Does TA work? It works if you are able to see the big picture. In the hands of a blind man, no tool can work.
I think, By big picture you mean the psychology behind the trading. You have explained well but I am convinced that technical analysis does not work 100%. It basically depends on the individual and how they look at it.
By big picture, I mean your ability to use other tools, bring them together, make an art/product out of them. Like a carpenter or a painter does. Let's say there are 2 different traders. One of them only use TA/indicators and nothing else. The other one can use TA if he wants to but he is also able to make sense out of the major market events and world news. He understands human psychology, he read lots of books about it. He has good education, can understand multiple foreign languages, good at math even though he doesn't really need it for trading... Also he runs a business and knows how to value a business. That means he understands fundamental analysis too.
Imo, the second trader's chances of winning in the long run is like 90% while the first trader who only uses TA has like 10% chances to win. (by "winning", I mean making considerable amount of money. Like doubling or tripling the initial investment)
That doesn't mean that the educated trader can't fail. He very well may turn into a major loser.
Imagine these traders both are chess players. The first one is playing blindfolded because he only has access to one tool. (only his hands lol) The other one has all the advantages. That's the difference between them. Can the first dude win? He can if a lightning bolt strikes the same spot twice.
That's Cool Men, Thanks. I have to think of different ways and bring something good out of it.
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