Topic: Is Technical analysis bullshit? (Read 901 times)
I think Technical analyses works more better with forex , futures and options. I am yet to try it on cryptocurrency trading because i believe that crypto has to do so much with market sentiments. So i care less with TA on crypto.
Using technical analysis, you can increase your chances of correctly predicting the price movement, but it is impossible to predict anything with 100% probability without insider information. Technical analysis works, just try using other methods for analysis.
For a daily trader technical analysis is as important as numerical analysis, and when you look at the numerical analysis, it is easier to do and takes less time but the rate of success usually low but its an important tool for confirmation
Technical analysis is not bullshit it is the key to a successful trade, now I the cryptocurrency world it does not always work because in the time it takes you to have a thorough technical analysis o the market, the market has already changed therefore its considered bullshit.
Yes TA not really work in crypto trading because crypto has high volatility, any crypto going up more than 10 times just in amonth and this is because that coin has strong fundamental and solid team member . So to maximize profit for the better spend more times to learn about fundamental of the project. Fundamental analysis is more usefull in crypto trading than TA.
You might have some other opinion but like everyone knows if we don’t have any knowledge or technical analysis, this can of great loss to you. We may lose something extraordinary because we might not be able to detect the flaws and problems in market. With technical analysis, we are able to see some aspects of market. With that, your results can be increased or enhanced.This would depend on how you gonna use it because as far as i experienced there are times prices do go along with those technicals.
Yes TA not really work in crypto trading because crypto has high volatility, any crypto going up more than 10 times just in amonth and this is because that coin has strong fundamental and solid team member . So to maximize profit for the better spend more times to learn about fundamental of the project. Fundamental analysis is more usefull in crypto trading than TA.
You might have some other opinion but like everyone knows if we don’t have any knowledge or technical analysis, this can of great loss to you. We may lose something extraordinary because we might not be able to detect the flaws and problems in market. With technical analysis, we are able to see some aspects of market. With that, your results can be increased or enhanced.
TA is just a tool that gives you an insight about the specific coin but when the market is bad and everyone sees loses than it is up to you to not base your investment only on one factor .
You can make like 90% losing trades and still come off profitable in the end simply because with just one profitable trade you can cancel out a dozen of losing ones, and with a vengeance.
That highly depends on how people prefer to trade. If you trade in a way that 1 trade can undo 10 losing trades, you are not aiming at consistent gains per trade, but just hope to ride the market for a longer while and profit more.If that works for you personally, that's great, but not every trader wants to follow that system. Consistency (as far as possible) is more important in my opinion. I wouldn't feel comfortable waiting for something that might not happen.
I definitely see what you are trying to say, but with that attitude I can't understand what you (or people you are describing in your post) are doing in this business (I mean trading, of course). You can't possibly do consistent profits in trading unless you can milk the market in some way, but you would likely be in the 0.1% market strata anyway. For the rest of the pack it is the relationship or balance between losses and gains which is their element and natural habitat. But in that case you can't talk about "consistent gains per trade" unless you mean averages. And with averages there is no difference between 1 winning trade versus 10 losing trades and 1 winning trade versus 1 losing trade as it is all averaged in the "gains per trade" metric, which would be the same in both cases provided you earn and not lose overall.
Securing profits when your minimum target has been met is just easier overall. There is no need to waste more time on a trade than needed.
Then you will earn dust. Fortunes are made (as well as lost, for the record) with long-term holding, not petty trading.
It works, but sometimes not because we cannot really determine if the price will go down or up. But using technical analysis is much better when buying and selling rather than using a hint.
TA is a great tool for measuring risks/rewards ratio. Support and resistance levels are very important imo. But to buy or sell coins based on indicators is stupid and people will get rekt sooner or later blindly following this strategy.
I used to think that Crypto was all about speculation and would buy news stories only to get dumped on hours later. TA can teach you how to recognize patterns and make calculated moves like buying on support and selling at resistance. It really improves your confidence making moves, and even when you're wrong you can learn why and try to improve for the next trade.
That would be right. Technical analysis gives you a perspective of when to buy and when to sell. There are different kinds of traders that uses different kind of strategies. Just because one is not successful in trading technical analysis or fundamental analysis doesn't mean that it is not effective.
This is the problem with technical analysis as such. Technically (no pun), you cannot prove it being ultimately wrong because you can always find a method, instrument, or indicator that would predict a correct outcome, in hindsight. On the other hand, fundamental analysis is different in this respect as it cannot be wrong or right depending on the chosen instrument. In other words, if done right and properly, it will give you more consistent results in the long run. Ultimately, it reflects your understanding of the factors that affect the price of an asset you are interested in, how well you know this asset.
Technical analysis is not a silver bullet ... Same can be said with fundamental analysis
The real problem that there is no standards body or certified advisors when it comes to technical analysis and fundamental analysis in the crypto world. What then happens is that the people you tend to follow slip up or don't make sense which causes losses.
The real problem that there is no standards body or certified advisors when it comes to technical analysis and fundamental analysis in the crypto world. What then happens is that the people you tend to follow slip up or don't make sense which causes losses.
Technical analysis is a very useful and useful job that gives us a great deal of knowledge and broad understanding of the insights through analysis as well as what we already know.
I used to think that Crypto was all about speculation and would buy news stories only to get dumped on hours later. TA can teach you how to recognize patterns and make calculated moves like buying on support and selling at resistance. It really improves your confidence making moves, and even when you're wrong you can learn why and try to improve for the next trade.
That would be right. Technical analysis gives you a perspective of when to buy and when to sell. There are different kinds of traders that uses different kind of strategies. Just because one is not successful in trading technical analysis or fundamental analysis doesn't mean that it is not effective. We all have different strategies in approaching the market and there is not so called "holy grail" in trading because no one can predict the future. One cannot say that the strategy of one person is more effective than the other because it would be a matter of being a consistent profitable trader.
I used to think that Crypto was all about speculation and would buy news stories only to get dumped on hours later. TA can teach you how to recognize patterns and make calculated moves like buying on support and selling at resistance. It really improves your confidence making moves, and even when you're wrong you can learn why and try to improve for the next trade.
fundamental analysis is likely more BS than technical analysis. you can thrive in trading just by TA alone.
it does not seem to be because I see the analysis technique is not too bad or just nonsense because I see with technical analysis you can determine the right time to buy and sell coin and can be your reference when you want to buy coin.
You can make like 90% losing trades and still come off profitable in the end simply because with just one profitable trade you can cancel out a dozen of losing ones, and with a vengeance.
That highly depends on how people prefer to trade. If you trade in a way that 1 trade can undo 10 losing trades, you are not aiming at consistent gains per trade, but just hope to ride the market for a longer while and profit more.If that works for you personally, that's great, but not every trader wants to follow that system. Consistency (as far as possible) is more important in my opinion. I wouldn't feel comfortable waiting for something that might not happen.
Securing profits when your minimum target has been met is just easier overall. There is no need to waste more time on a trade than needed.
There is no legitimate proof technical analysis is working charmingly. But Indirectly when every trader uses the technical analysis to trade, combined they will somehow make the technical analysis valid since its used by many people.
With the help of technical analysis, traders and investors can predict the right time to enter and exit a trade thereby enabling good returns.
They actually can't predict the right time to enter or to exit. All the different layers within the TA book only make sure that in certain situations you have better odds than the standard 50/50 shots. As long as the better odds make sure traders settle more profitable than losing trades, they have done exceptionally well.
In practice, it doesn't work anywhere like that. First of all, it is not about "better odds than the standard 50/50 shots". It is your total in the balance of profits earned and losses suffered which counts in the end, not the number of "shots" and the relationship between misses and hits per se. You can make like 90% losing trades and still come off profitable in the end simply because with just one profitable trade you can cancel out a dozen of losing ones, and with a vengeance. Further, I'm not sure if you can implement this approach and achieve such an outcome using standard TA even theoretically as this has nothing to do with the essence of technical analysis as such.
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