Technical Analysis

makeorbrake

Where can I find some online training material with regard to Technical Analysis?

JustJoe7240

makeorbrake wrote: »

Where can I find some online training material with regard to Technical Analysis?

investopedia.com is a good start.

TiGeR KiNgS

makeorbrake wrote: »

Where can I find some online training material with regard to Technical Analysis?

Technical analysis hasn't worked for over 20 years.
It's been overtaken by quantitative analysis.

makeorbrake

TiGeR KiNgS wrote: »

Technical analysis hasn't worked for over 20 years.
It's been overtaken by quantitative analysis.

surely it must still have a tiny bit of relevance as one small part of an overall trading strategy/plan? Otherwise, why are so many people still using it?

On QA, it seems that involves knowledge of programming such as python or the likes... beyond my ability at present.

Is there anyone here at all that puts TA to use if only in a small way?

makeorbrake

TiGeR KiNgS wrote: »

Technical analysis hasn't worked for over 20 years.
It's been overtaken by quantitative analysis.

surely it must still have a tiny bit of relevance as one small part of an overall trading strategy/plan? Otherwise, why are so many people still using it?

On QA, it seems that involves knowledge of programming such as python or the likes... beyond my ability at present.

Is there anyone here at all that puts TA to use if only in a small way?

positivecarry

makeorbrake wrote: »

surely it must still have a tiny bit of relevance as one small part of an overall trading strategy/plan? Otherwise, why are so many people still using it?

On QA, it seems that involves knowledge of programming such as python or the likes... beyond my ability at present.

Is there anyone here at all that puts TA to use if only in a small way?

Depends what market you are talking about. Forex is technical analysis based a little on a long term basis and a decent amount on a short term basis. The stock market hasn't got the same amount of liquidity so you'll find levels and technicals do not get respected as well as they do in forex. It is mostly controlled by long term traders from a fundamental standpoint and daytrading is mostly quant trading yes, easy to spot inefficiencies in a low liquid market as it can't always be true to value all the time as forex is

makeorbrake

positivecarry wrote: »

Depends what market you are talking about. Forex is technical analysis based a little on a long term basis and a decent amount on a short term basis. The stock market hasn't got the same amount of liquidity so you'll find levels and technicals do not get respected as well as they do in forex. It is mostly controlled by long term traders from a fundamental standpoint and daytrading is mostly quant trading yes, easy to spot inefficiencies in a low liquid market as it can't always be true to value all the time as forex is

I have not been able to put as much time into this as I wanted due to new work demands. However, the little bit of tech analysis I've been following and checking myself seems to indicate that oftentimes, resisitance levels and support levels tend to come true i.e. they tend to form where they formed on previous occasions. Perhaps there's an element of self fulfilled prophecy with this (where others are following/applying TA).

However, whilst accepting that it's no miracle application, when setting stop losses and the like, isn't it worthwhile to bear in mind resistance levels and support levels as indicated via tech analysis? The indicators also seem to have some modest value from what I can see..

positivecarry

So let's say you're talking about forex. The market has around 6 trillion daily volume at this point meaning that there is a buyer/seller at every price, it is very true to value. The market moves up and down based on net amount of money long or short. 99% of people can be short but if the 1% have more money long then price will go up. However it is impossible for one single person to move the market, so you look historic levels to become valuable again. This works not because they were valuable before (partly), but let's say you have a 10 million buy, and you are approaching a clear resistance level, that you know 80% of the market might leave at because a) they don't think we can breach, b) they can get out of their position in this highly liquid area, c) fundamentals don't suggest we could break this point, then you are going to get out also, more than likely by understanding others will. There is a lot of that view point in markets, staying within the boundaries of the most likely play others will make.

Indicators use price data to display their reading, meaning that if it crosses from oversold back into normal territory for example, you already missed your move. Other indicators predict, but it's impossible to use the past couple candles to accurately display more than 50% of the time what will happen.

Now granted people might say, well I use oversold territory, chances are you have a support level there and have stops wide enough that it takes away from the risk/reward, which is the goal in trading.

I could write a book on it but just my 2 cents