Topic: Is technical analysis useful? - page 35. (Read 2535 times)

Technical analysis is useful in the sense that it gives you guidance on the latest activities that took place during a period of time. It can provide also a head start on the possible movement of the pricing which can really be helpful. However, technical analysis is not always accurate and at the end of the day, up and down of prices is still unpredictable due to some unforeseen factors.

I do not really believe in the analysis techniques available on the internet I will only compare the analysis with my own analysis if the analysis is the same then I will use.

I can say yes for day trading, because we need to understand more about technical analysis when doing short trading to get right price when buying and selling any coin and to decide which area to set up stop loss. Will be difficult to know when buy and sell if we dont understand about technical analysis, so if you jump in to day trading should be learn it more.

Not always a reliable thing but really a great tool for me on doing trading. It might not give accurate result but yet its useful when it comes on assuming price movement and price assumptions that might a certain coin would go. Its much better than on having no basis at all or just doing trading without technical tools. Might really be a confusing thing at first but when you got used to it you will surely see on how useful it is.

Technical analysis is very useful for me because it can be used to predict stock movements, so we can be alert and better prepared to take direction in investing, whether we will immediately buy, sell or hold it.

TL:DR Yes and No.. it depends on the coin..and even if it helps.. common sense and avoiding emotional trading like fomo/fud/greed will take you alot further, especially as a noobie.

I do believe fundamental technical analysis works but only when other traders use it as a basis too... I think BTC/USD for example has high enough volume and enough millionaires/professionals where'd they'd all basically see the same indicators and tools giving them buy and sell signals so it becomes sort of a self fulfilling prophecy.. If you day trade BTC or ETH/USD, fibonacci levels or "just under" seem to play out very well with entry and exit points.. larger broader trades using moving averages and ichi cloud seem to follow stock indicators atleast in a general sense.

The problem with alt coins and btc/eth pairs is when you use technical analysis with these. there tends to be an extra moving part.. because the volatility of the alt coin also primarily goes up and down vs the price of the coin you're purchasing with.. which is often not found in traditional technical analysis since the price of traditional currency is way less volatile.  Any TA can fall apart in seconds if BTC is bull running or dropping.. so the only real way to really use TA in these types of markets is to use it to judge what BTC/USD is going to do, and use that as the primary buy and sell indicator of your favorite alt coins.  You can have a lot of success in alt coins I feel if you can move to BTC fast enough based off of things you see through technical analysis on the BTC chart, because you're moving one step ahead of the best revolving position...Think BTC won't break 9200 USD and we'lll spiral down to 6000 USD again or lower? You could move to USDT to buy BTC at that price again and alts will be waiting for you 50% off.. so the risk you take could net you 50%+ gains just reaching the correction price.. which is the safest of all sell zones to reach again (any price thats happened in the past will be exponentially more likely to be reached again over speculative all time highs).

Anyways.. as far as BTC TA (or even alt coins TA, but  ALWAYS have BTC/USD Bitfinex on tradingview open while trading alts at all times so youre monitoring what the king is doing to help/hurt your trade's cause).. I try not to overcomplicate my predictions.. (breaking supports for profit - See Quickfingers Luc youtube videos this guy explains safe buying zones using nothing but resistance support for basic day trading, really good)

Ones I find useful

Moving Averages on the Day Chart (50/100/200 Day) - I value this one the highest.. its simple, and allows at a glance of scanning coins what has pulled back enough from runups that may be worth looking at if other indicators seem positive
Fibonacci retracements for buy and sell zones (just ideas on where to look for resistance levels to take profit, always leave the areas a bit lower, since everyone uses these to sell as zones, hence the more who use TA, the more of a self fulfilling propechy it becomes.
Bollinger Bands (sometimes I use these just to see how tightly wound things are getting when trying to break out from descending wedges/bull flags/etc.
MACD and RSI (just a quick indicator to pair with others to confirm the information the other indicators are showing me)
Ichimoku Cloud - Love seeing the overhead resistances and when on bull runs if its starting to fall flat.. this indicator isn't good on its own but like using with others.

Things I don't find useful:
Elliot Wave Theory - I can certainly appreciate the concept and I think overall the general concept of any 1-5 wave will lead to an ABC correction in a general sense is good, but as a predictive price to buy or sell at, it seems way too optomistic 99 times out of 100 to me.  When chasing coins on a pullback however I do wait for the confirmed C pattern to form.. the problem is large runups can lead to a very long C extension (especially when paired to BTC acting up) so its just best to wait for confirmed reversal pattern over trying to buy based off of the measurement of C.
RSI alone - alot of people use RSI alone for whatever reason which I don't feel is a good idea.. it can in a general sense  show if something is overbought or oversold, but something can rally oversold for days or weeks..btc in 2017 is a good example... if you sell when something is overbought or buy when its oversold, youre gonna miss alot of the tops of runups and get cut by the falling knife as it just becomes even more oversolid.. wait for other indicators to confirm what the RSI is telling you.


Anyways I do find some of the tools useful, but like all things nothing is always a perfect science.  Even if you think TA is complete garbage.. use common sense when trading.. do not buy things in parabolic runups and dont buy coins all at once price (make sure to ladder into positions so you cost average.. and YES sometimes that means you will miss some of the bottom).  At the end of the day I think TA can help you min/max your results with some practice.. but most of the gains comes from using common sense... buy low sell high and not fomoing or getting too greedy or panicking.  If you are a new person work on managing your emotions and common sense first then work on perfecting your TA later.

It depends on the circumstances. I personally prefer to distance myself from TA, but the basics can turn out to be somewhat helpful when the market is fairly calm, basically like the current market that sticks to its range.

At the moment the market enters a more active phase, the predictability aspect of the market becomes basically zero, and so becomes TA less reliable, till even completely unusable.

The main point here is that this market is driven by emotions and greed, which becomes more of an important factor the more active the market becomes. Regardless of your experience, there is no way to counter that.

The bull run of last year functions as an example of how the market in an active phase doesn't move according to the TA standards. It kept trolling TA for a good while on its way up, and even on its way down.

I'm technical trader, really important for me because from there I can decides which one should I replace my trust. Many people doesn't like technical analysis because too difficult to understand and also wasting time. Another reason is, 1 technical can split become part and combined with fundamental analysis. We can't do that in 5 minutes, sometimes will take 1 hour ( just like me ). We can take analysis we want, as long we understand and get profit it will be fine. 

Certainly i agree , technical analysis is very useful everywhere or and in any kind of process analysis. By using this kind of technique we can gather data so that we can track and back track the process movement of a specific coin in the market to help us in our decision making in trading.

Many people use TA in determining when to buy or sell in cryptomarket these days. You can include myself to those people who use it and include it in their trading strategy. This has become a norm in every trader and mostly provide insight in their decisions regarding the directions of the market. You must take note that this is not 100% fail-proof analysis. TA just provide you some useful information that can help you in your trades. There are many factors that affects the success of your trades and you shouldn't solely rely on the data being provided by TA. Do an extensive research in every detail regarding the coin of your choice.

At first I also used the technical analysis just like in the stock market and it seems it is not useful in crypto market. Someone in the forum help me on how to chart in crypto.

The basic concept is actually the same but plotting is different. Also I noticed that support and resistance is respected here in the crytpo market.

Of course there is no guarantee that it will go your way but at least you will have a guide.

For me this is useful but this technical analysis not 100 guarantee working because sometimes the price of cryptocurrency will does not work by technical because any high impact of news. But for basic trading you have to learn it to understanding about price action.

I don't think these data will work every time in the crypto world. Because what I know is any small bad news can easily change complete market condition in a crypto market.  But when markets are in good mood then surely based on these data we can make some quick bucks. Along with all these data we also need to watch the market news carefully otherwise we can easily go wrong.

Yes very usefull for me because by know it we can decide which level price should be to buy and sell the coin. From technical analysis we will know also about overbought and oversold area, up trend and downtrend.

in stockmarket, i used to believe a lot in TA. but in crypto, not so much. prices of most coins are easy to pump and dump. plus there is no gain/loss limits

Using technical analysis only is not a good ways to make a decision. It should be compared and combined with fundamental analysis.

I think those analysis is just a supported tool only. Not more. The next price movement is really unpredictable.

Do you believe in the reliability of information obtained by technical analysis on crypto-currency market?