Topic: Is technical analysis negatively affecting cryptocurrencies? (Read 1339 times)
The OP has said it all right from onset I am not a fan of technical analysis in Cryptos trading because in most cases bitcoin do defies any form TA in trading with the current dumping as a case study the price had broken many strong support zones easily without any bullish sign where TA traders would have envisage a turn around.
Other who are on the negative side of the cryptocurrency will be negatively be affecting by this technical analysis , because this will guide the good path of a certain platform or project to be promoted and launched, those team that runs scams and fraud project would b6e affected by this technical analysis, but to the team that are honest it would be a lot of help to the project.
I have to say upfront that I'm no fan of technical analysis, even in traditional asset markets. There are 2 main reasons for this:
1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.
This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.
At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.
In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.
What is your view on this?
Your second point is mistaken, it is the other way around, if a new indicator can be proven to work in the market that indicator is going to stop working if everyone begins to use it, remember the majority cannot be profitable in the market because you are not generating money, money is just exchanging hands and for that you need to be part of a minority and if everyone knows about a particular indicator and how to use it then it stops working.1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.
This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.
At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.
In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.
What is your view on this?
I have to say upfront that I'm no fan of technical analysis, even in traditional asset markets. There are 2 main reasons for this:
1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.
This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.
At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.
In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.
What is your view on this?
Your second point is mistaken, it is the other way around, if a new indicator can be proven to work in the market that indicator is going to stop working if everyone begins to use it, remember the majority cannot be profitable in the market because you are not generating money, money is just exchanging hands and for that you need to be part of a minority and if everyone knows about a particular indicator and how to use it then it stops working. 1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.
This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.
At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.
In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.
What is your view on this?
I think it has a positive effect on the contrary, because each time it creates the opposite dynamics to what was predicted by analysts
As far as I am concerned, Technical analysis is just a part of the market, and there is nothing anyone can do about it. It certainly does not affect anything positively or negatively, they just seem like some trends or something, even though it is something that a lot of people have collectively placed there themselves, but in the real sense, it is just some normal thing to just trade the market.Well, if we say TA sucks, maybe we should try not even using TA at all and see how that would turn out. The problem with the market entirely is that is more speculative in nature, but that has so many difference from TA on its own.
Right. Ta's affect directly the person who uses it or those that rely on tips by people who use it. And the effects vary since not all who know ta can have all positive outcomes. There will be failed trades based on ta and successful ones but no general effect on the market itself.
Technically yes because on my own analysis its not actually affecting the market negatively but the traders are misinterpret it to trade wrongly so many investors are not even following technical analysis and so technical indicators are just there for me and you to lose money.
I have to say upfront that I'm no fan of technical analysis, even in traditional asset markets. There are 2 main reasons for this:
1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.
This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.
At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.
In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.
What is your view on this?
I think yes, it is because many people are reading and searching news over the internet. It is their strategy to manipulates the mindset of the people. 1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.
This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.
At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.
In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.
What is your view on this?
i am always believe cryptocurrency like bitcoin is long term investment and people using technical analysis because they just want short term investment and make profits from market fluctuation
You may not like technical analysis when the resultant effect is a negative effect on the price of cryptocurrencies. But you should also not forget that Bitcoin and the entire cryptocurrency market has gotten to the positive heights today as a result of the same technical analysis.
this gets back to the "self fulfilling prophecy" idea, which i think is bogus. the idea that the market follows traders, rather than traders following the market, means the tail is wagging the dog. how likely is that?
traders merely join markets and try to trade around an existing trend or range. they can affect supply and demand, but the long term net effect should be negligible because they eventually close their positions. when it comes to traders, every buyer is also a seller, and every shorter must buy back his borrowed coins.
OP, I agree with everything you said, except for the following:
In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.
Crypto community can simply ignore this "financial voodoo science", as The Pharmacist called it above, and keep moving on.
For those who think, based on their experience, there is a correlation between some TAs and the actual market movements and that that's why we can say that some of the predictions are legit, I would like to remind that if many predictions were made, about anything, there is always a possibility of some of them to come true, no matter however stupid they were.
In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.
Crypto community can simply ignore this "financial voodoo science", as The Pharmacist called it above, and keep moving on.
For those who think, based on their experience, there is a correlation between some TAs and the actual market movements and that that's why we can say that some of the predictions are legit, I would like to remind that if many predictions were made, about anything, there is always a possibility of some of them to come true, no matter however stupid they were.
You may not like technical analysis when the resultant effect is a negative effect on the price of cryptocurrencies. But you should also not forget that Bitcoin and the entire cryptocurrency market has gotten to the positive heights today as a result of the same technical analysis. Without such analysis, people may not get to truly know about cryptocurrency.
I have to say upfront that I'm no fan of technical analysis, even in traditional asset markets. There are 2 main reasons for this:
1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.
This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.
At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.
In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.
What is your view on this?
1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.
This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.
At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.
In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.
What is your view on this?
Technical analysis does not work when there is panic or excitement in the market. Now everything is stable enough and technical analysis works. I now often use technical analysis and lately it has been justifying itself in the short term.
Perhaps the newbies following Coindesk and co. analysis and the telegram channels. 
Following real analysis you still need to use your own feeling in the end, an analysis from someone else is just a parameter in your decisions.
Following real analysis you still need to use your own feeling in the end, an analysis from someone else is just a parameter in your decisions. 
Technical analysis is basis of trading and I do not understand in what way is can negatively affect on cryptos 0_0
I have to agree. All these technical analysis is merely a technical term for a guess. I myself do this but backed up with trends from way back. And i still get it only 2 in 5 times at a time. I guess you can use a technical analysis as maybe a suggestion when investing but all in all we all should just read up and analyse ourselves the coin we are investing in.
Technical analysis have been alive even before cryptocurrency came into play and has been a guide for most traders to always anticipate for what is next and that makes me wonder why anyone would think it is a problem. Whether we like it or not, we will always have institutional investors, whales and retail traders, who will always want to take advantage of market fluctuations and those fluctuations are just a part of the market that has a lot to do with demand and supply, and there is absolutely no way you will not have to see technical analysis coming into play.
Technical analysis of the market is sometimes a strategic move to make good impression of the market. Of course there are still people here in cryptocurrency who are so techical. But, most of the new investors are just here for profit not relying on techicalities, instead relying on news without knowing that most of the news were fabricated to influence the mind of investors.
I even wonder why someone will call something that has been in existence for a very long time in traditional markets as a problem for cryptocurrencies. If we are saying there should be no technical analysis at all, then probably we should be saying there should be no trader at all as well, and the market should basically be moving based on the rate at which people buy and sell only.However, we have to understand one basic fact that the market is filled with traders and by traders, I am referring to both institutional and retail traders, and in this way there will always be a pattern as it is this pattern that brings participation into the market, and makes the market makers to at least keep making some money in the long run, while traders anticipate as well to outsmart other retail traders, so in a way, it is just a part of the market and i do not consider it a problem at all.
Technical analysis of the market is sometimes a strategic move to make good impression of the market. Of course there are still people here in cryptocurrency who are so techical. But, most of the new investors are just here for profit not relying on techicalities, instead relying on news without knowing that most of the news were fabricated to influence the mind of investors.
I have to agree. All these technical analysis is merely a technical term for a guess. I myself do this but backed up with trends from way back. And i still get it only 2 in 5 times at a time. I guess you can use a technical analysis as maybe a suggestion when investing but all in all we all should just read up and analyse ourselves the coin we are investing in.
Indeed, there is no scientific evidence that technical analysis works, but experienced traders use technical analysis in their work. If technical analysis were absolutely useless, it would not be used at all. Technical and fundamental analyses give good results when used in tandem.
Technical analysis is a feature that the trader's price estimate is related to psychology. It is the movement of people with less money to influence the price, so moving together means investing big money. TA doesn't always have to work, it is only an estimate. Sometimes fundamental analysis aslo doesn't work, so the news don't come as you expect. These are just the price prediction features and it is not possible to move without them. I think it has a positive effect on the contrary, because each time it creates the opposite dynamics to what was predicted by analysts
As far as I am concerned, Technical analysis is just a part of the market, and there is nothing anyone can do about it. It certainly does not affect anything positively or negatively, they just seem like some trends or something, even though it is something that a lot of people have collectively placed there themselves, but in the real sense, it is just some normal thing to just trade the market.Well, if we say TA sucks, maybe we should try not even using TA at all and see how that would turn out. The problem with the market entirely is that is more speculative in nature, but that has so many difference from TA on its own.
Right. Ta's affect directly the person who uses it or those that rely on tips by people who use it. And the effects vary since not all who know ta can have all positive outcomes. There will be failed trades based on ta and successful ones but no general effect on the market itself.
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