Topic: what is point of Tehnical analysis? - page 4. (Read 943 times)
Technical analysis could be an exchange teach utilized to evaluate ventures and distinguish exchanging openings in cost patterns and designs seen on charts. Technical analysts accept past trading movement and cost changes of security can be profitable markers of the security's future cost developments.
Plus, another thing the OP, should learn is that Technical Analysis is the least important part of a whole trading system. I believe Capital management, and sizing your position well against a coin’s volatility and the size of your capital should be known first before knowing your entries and exits.
Its part of of risk management when you do handle out about capital or simply with your funds and lots of other factors which would really be needed as a whole to have some effective trading strategy to end up
on being profitable.
I dont know on why its been asked on whats the point of TA's? Of course it would really be part of your trading career.You cant just make out some positions without any basis or analysis because that would be just
simply a gamble and thats not why we are here on the first place.
You would do or try lots of strategies when you do trade not only limited with technical but also with fundamentals as well which are commonly used on here.
I believe OP must have been buying and selling the current market and could have accumulated some losses. For active trading, in this current market, don’t do anything, especially if capital is low. The small profit will not be worth the stress, and trading with leverage increases the risk of losing more capital.
Sideways trends have proved that technical analysis doesn't always mean anything.
About a month ago we hit 30k, and TA is constantly predicting a breakout up or down, usually up, but instead the market crabs sideways, something only a few people predicted, and most of them didn't use technical analysis to figure it out.
TA is such a pointless endeavor in a market that is so controlled and volatile by the current BTC price action, especially if it is dependent upon the behavior of whales.
My guess is that there is always a money to be made in the very short term looking at these TA charts, however it is always a bit unsure as well because crypto is very volatile. So what happened is that in the stock world people made a lot of money based on the stock charts, you look at revenue, debt, profit, cash flow etc etc etc and you make a good amount of profit based on that, however at the end of the day there are few crashes that happen there as well, not that frequently but it did happen.About a month ago we hit 30k, and TA is constantly predicting a breakout up or down, usually up, but instead the market crabs sideways, something only a few people predicted, and most of them didn't use technical analysis to figure it out.
TA is such a pointless endeavor in a market that is so controlled and volatile by the current BTC price action, especially if it is dependent upon the behavior of whales.
So people who came from that world wanted to use the same thing on crypto, which does work if you are doing daily trading for example, if you want to buy now and sell an hour later that is not going to be impacted by the crypto nature, however in the long term you could always have some company declare bitcoin acceptance and bitcoin skyrockets or Elon tweets and it crashes, those are not in TA at all, if you can avoid those, TA could work very well in short term.
Sideways trends have proved that technical analysis doesn't always mean anything.
About a month ago we hit 30k, and TA is constantly predicting a breakout up or down, usually up, but instead the market crabs sideways, something only a few people predicted, and most of them didn't use technical analysis to figure it out.
TA is such a pointless endeavor in a market that is so controlled and volatile by the current BTC price action, especially if it is dependent upon the behavior of whales.
What do you think about it?
Pointeless endeavor? No its not and you would able to tell for yourself on how important this kind of analysis is because this market doesnt always react nor workout when you are just tending to make use of fundamentals.About a month ago we hit 30k, and TA is constantly predicting a breakout up or down, usually up, but instead the market crabs sideways, something only a few people predicted, and most of them didn't use technical analysis to figure it out.
TA is such a pointless endeavor in a market that is so controlled and volatile by the current BTC price action, especially if it is dependent upon the behavior of whales.
What do you think about it?
You would really be finding for technicals to be that relevant when you do trade and make out investment into this market.It is way more better to have these kind of analysis rather than on making out positions without any basis because that surely talks about gambling.
Its just normal that analysis doesnt really work from time to time and thats not surprising because if this market had been working precisely with technicals
then for sure lots of us is already rich and making easy profits.
It is obviously something difficult to do as there is not a way to predict with 100% of certainty that a market is about to begin to range instead of showing a strong trend, but the accuracy is high enough for disciplined traders to make money on both market conditions.
Plus, another thing the OP, should learn is that Technical Analysis is the least important part of a whole trading system. I believe Capital management, and sizing your position well against a coin’s volatility and the size of your capital should be known first before knowing your entries and exits.
Its part of of risk management when you do handle out about capital or simply with your funds and lots of other factors which would really be needed as a whole to have some effective trading strategy to end up on being profitable.
I dont know on why its been asked on whats the point of TA's? Of course it would really be part of your trading career.You cant just make out some positions without any basis or analysis because that would be just
simply a gamble and thats not why we are here on the first place.
You would do or try lots of strategies when you do trade not only limited with technical but also with fundamentals as well which are commonly used on here.
Through trading volume and market movement we can evaluate and identify our trading investment, this is the point of technical analysis. This is essential in trading because it can help us determine our trading status and it is very helpful for us to make profit.
I agree that technical analysis is indeed the most important part of trading that can make us profit. And technical analysis can be done by anyone
who has studied it. With technical analysis allows us to read price movements, this is what distinguishes traders from speculators who make
decisions based on other people's opinions. There is no doubt why technical analysis is very important to learn, so don't be lazy to do technical
analysis before trading.
Plus, another thing the OP, should learn is that Technical Analysis is the least important part of a whole trading system. I believe Capital management, and sizing your position well against a coin’s volatility and the size of your capital should be known first before knowing your entries and exits.
Through trading volume and market movement we can evaluate and identify our trading investment, this is the point of technical analysis. This is essential in trading because it can help us determine our trading status and it is very helpful for us to make profit.
Technical analysis has it's use you don't just enter a trade because you found a single entry signal you don't trade technical analysis in isolation. There must be confluence between at least two confirmations which could be your candle stick and indicators but alwys more powerful when it's between three different confirmations. Although cryto market is basically moved by fundamental analysis but both can be combined to maintain a good profit
For long term hodlers though FA becomes more important, except for bitcoin though, where you can hodl for years without having to an ounce to think about.
Except bitcoin? No. Just because of fundamentals of bitcoin is stronger, we are enjoying big profits after years of holding. So, holding was discovered as a profitable way of trading bitcoin through the fundamental analysis on bitcoin's economy rules and governance. Hence, I believe we are holding bitcoins with long term plans as per FA.In my observation, technical part is only up to 50% in our success rate. The remaining is depending on how effectively you are managing your risk and emotional things
Technical is only for short term trading hence your TA may valid for next one hour or one week still when a news arrive, you need to adjust your TA part again. So, I agree and in my opinion TA is just 10% for helping you to make profits.
I look at all good coins, if at least one of them has fallen to the bottom of the price, therefore the entire market will not fall lower from this time
for short-term traders I think technical analysis is the main reference for determining action. we can see support and resistance on the left so we can determine the buy or sell area. although the cryptocurrency market is manipulated, I think trading psychology has a lot in common for every trader
Cant say for sure, but from what I have heard, day traders base their predictions on TA more than FA. So I guess for them it is an important point. For long term hodlers though FA becomes more important, except for bitcoin though, where you can hodl for years without having to an ounce to think about. 
Majority of TA I have seen is news and market "analysts" talking about the market at the end of the day. Rarely I have seen any of them following up the predictions. So if someone follows that, they will reach the notion that TA is complete bullshit. But in reality it has some utility as well.
However TA is not essential for trading. Like I said, hodlers can easily ignore TA and go with the basic price charts to buy.
It’s usually 1% - 5% per trade.
This has nothing to do with technical analysis but with one's own trading strategy and personal risk tolerance. However, 5% is far too high even for very risk-averse traders, as the capital would be used up after 20 failed trades. Personally, I trade with a maximum of 1%, but for such trades, many (of my) indicators must point in the same direction, which is very rare.
Nothing indeed, that’s why I replied to the other person that his reply was an over-simplification. Technical Analysis alone will not make you a successful trader. It also needs management of capital and the correct sizing for your trades depending on volatility.
Don’t get out of context, I said 1% - 5%. 5% is also indeed high but there are times you need to take on larger risks when the probability for profit is also very high, especially during bottomed markets.
A professional trader not only relies on technical analysis but also relies on the Fundamentals and combines them.
Fundamentals may not help you for your day trading still you can combine it along with your technical analysis because having something than usual might be giving you extra advantage over others; it is like when all others are going for shorting bitcoin but you can keep your buying positions intact because you are believing into the fundamentals of bitcoin. It means you might have something up to core fundamentally so that you can easily make use of it in your trading.People tend to change their technical things according to market condition which might be the other reason why they are finding it pointless at the end of the day. We must need to confident about our technical things like if our technical things are not working then we should exit at stoploss rather than we simply avoid it and go for trading randomly.
Especially newcomers rely 100% on signals and set their trades accordingly... and are of course immediately disappointed when this does not work and a trade fails.
Relying on anything for all 100% may not work consistently because results from trading is not technical all the times like market may get influenced by news and events which may not be covered by technical indicators all of sudden.I guess it would be much better on being too selective while choosing signals for our trading. This way I am sure we can find the real meaning of technical analysis
Even after strong technical analysis, traders are hitting stoploss, then I believe we need to filter out too good signals for trading by skipping all others. This may not be possible when we are not fully aware of market fluctuations but when we experience how crypto market works then we can easily select right signals based on timing, pattern, cycle and other similar data. In my observation, technical part is only up to 50% in our success rate. The remaining is depending on how effectively you are managing your risk and emotional things and more importantly where you open your trade on one particular day where other factors like news, exchange volumes and etc are in your favor or against you.
I see it the same way. Especially newcomers rely 100% on signals and set their trades accordingly... and are of course immediately disappointed when this does not work and a trade fails. What also helps a lot is to know the market very well, e.g. it makes little sense to bet on rising prices when the futures expire. On the other hand, major announcements are usually positive price drivers.
Technical analysis is indeed not 100% correct because it is only an analysis as a pointer to where the market will go next. Technical analysis is also associated with fundamental analysis and both are continuous. Have an attachment so that both can describe the state of the market. Fundamentals can indeed be controlled, but fundamentals still refer to technical analysis. Market speculation carried out by Whales does provide a big move, it will also play a role in market psychology.
A professional trader not only relies on technical analysis but also relies on the Fundamentals and combines them.
A professional trader not only relies on technical analysis but also relies on the Fundamentals and combines them.
Personally, I trade with a maximum of 1%, but for such trades, many (of my) indicators must point in the same direction, which is very rare.
When these days protecting our capital against wild volatile nature of crypto markets, I guess it would be much better on being too selective while choosing signals for our trading. This way I am sure we can find the real meaning of technical analysis because when we are positive about going for trade then we will see all the signals are too good to trade with. And this is the reason, by the end of the day people are blaming the technical analysis as a pointless thing.In my observation, technical part is only up to 50% in our success rate. The remaining is depending on how effectively you are managing your risk and emotional things and more importantly where you open your trade on one particular day where other factors like news, exchange volumes and etc are in your favor or against you.
TA is pointless if you only depend on one indicator and only depend on TA without relating them with the possible news upcoming. However, TA is kinda two tail. It sounds like economic prediction where most of the economist put individual opinion and they may have different prediction. TA works in the same way. It may or may not happen.
You must not rely on TA only. Relate other factors too to get a closer output.
You must not rely on TA only. Relate other factors too to get a closer output.
There's a different types of trading for a different asset or coin. Technical analysis is what often use because no one can predict when will the news will come. Technical Analysis is a self fulfilling prophecy that's why it really works most of the time but as you said, there is some factors to that sometimes affects TA which is inevitable. TA can't give you a 100 success rate on trading but it just give you an edge when there's no news(fundamentals) comes.
It’s usually 1% - 5% per trade.
This has nothing to do with technical analysis but with one's own trading strategy and personal risk tolerance. However, 5% is far too high even for very risk-averse traders, as the capital would be used up after 20 failed trades. Personally, I trade with a maximum of 1%, but for such trades, many (of my) indicators must point in the same direction, which is very rare.
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