Investment Technical Analysis

[GJABS]

My opinion is that the patterns that technical analysis describes, happen in the financial markets as a result of trading activity if nobody knows about technical analysis. But rather analogous to quantum mechanics, once traders became aware of these patterns, their trading behaviour changed resulting in these patterns becoming markedly less pronounced, such that trading costs/spreads eliminate all profit.
Banks and hedge funds are constantly looking for patterns out there, and I think it's safe to say that they'll detect, exploit, and eliminate any they find well before we will.

[_V_]

Whorty'll fit right in then.

This I was afraid of, hence my advice.

[northernladuk]

_V_ is spot on.

If it was possible to consistently make good money with TA, loads of people would be getting rich. Even many prop firms and hedge funds, with professional traders using TA, struggle to outperform the market.

The markets may not be 100% efficient, and there are some known persistent anomalies, but trying to beat the market is largely futile.

Agreed. And you've seen what it's done to pooper and his reputation. Why would you want to put yourself through that?

[Whorty]

The only people that make money on technical analysis are the cretins selling their technical analysis "investment advice" to other, even less numerate, cretins. Technical analysis and cryptocurrencies are the refuge of low-IQ conspiracy theorists and common or garden morons.

Come on, have you even looked at the Warrior Trading site? It looks great!! Really slick. They are warriors and traders . And you can pay the best part of $800 a year for their basic package. The 'live' chat room is brilliant - well, given some of the reviews online, it's brilliant for them but less so for their 'students'. I'm in the wrong business

Edit: looks like it closer to $4000 per year for the basic starter membership. Bargain.

Edit 2 : The 'Pro' subscription is about $7700 a year

You don't need many 'students' on your books to be making a nice living.

[Whorty]

Whorty'll fit right in then.

I know, OMG, I'm so excited by all this. The more I look into it, the more I can see how I can turn my £21000 into a million. Just need to find the right course now to learn about TA and I'll be flying to the moon

[Whorty]

This I was afraid of, hence my advice.

[Paralytic]

TA's like to say "the chart says..." without telling you it is the PERSON who is interpreting the chart and is drawing the lines that they use to validate their pre-existing thoughts.

If it worked, if it could be distilled down to a few algorithms, then we'd have every programmer with even the most basic of skills knocking up an app to trade for them.

It's for people who are too lazy/unintelligent to actually understand businesses and economics but can draw straight lines. Some get lucky and make money; most don't. Some lie to pretend they are the former.

[jamesbrown]

If it worked, if it could be distilled down to a few algorithms, then we'd have every programmer with even the most basic of skills knocking up an app to trade for them.

Which would, of course, instantly eliminate them. Quants don't make money by gazing at the star charts like scootie, rather by setting traps for "idiots", manipulating the markets, engaging in complex arbitrage, and having the competitive advantage of speed. Charting is for mystic megs.

[scooterscot]

So much pessimism - what did I say about emotion?

So someone pick an assets / stock / anything / and I'm curious partly what everyone will think. Could be anything... I'll not draw a line or anything on it.

Education tip: 1-day per candle and a year of data every time in the window. A daily chart with anything more than or less than the year is not going to work.

[scooterscot]

TA's like to say "the chart says..." without telling you it is the PERSON who is interpreting the chart and is drawing the lines that they use to validate their pre-existing thoughts.

If it worked, if it could be distilled down to a few algorithms, then we'd have every programmer with even the most basic of skills knocking up an app to trade for them.

It's for people who are too lazy/unintelligent to actually understand businesses and economics but can draw straight lines. Some get lucky and make money; most don't. Some lie to pretend they are the former.

A 1000 years from now charts will still be the same. Sure there'll be better tools but still the science will be the same. Why? Because humans have emotion. That's all charts are, human emotion.