/biz/ - Business & Finance

[Anonymous No.10137532]

Give it to me straight /biz/: Is Technical Analysis bullshit?

[Anonymous No.10137542]

>>10137532
Sort of. Works well in volatile markets due to geometry, not because of any inherent predicting ability.

[Anonymous No.10137578]

It is, how can lines on a chart predict when people/bots buy/sell?

[Anonymous No.10137583]

yes, complete and total horseshit. If you ask a TA "guru" how it works, they can't explain it aside from vague answers like "it's supply and demand" or "it's fear and greed". TA is just guessing. Trading on TA indicators is no different than betting on a 7 in roulette because it's a "lucky number". There's zero evidence that it works, and no explanation for the mechanism of how it supposedly works.

Here's a couple videos TA cultists need to watch
https://www.youtube.com/watch?v=7ZPC2o66WY4

https://www.youtube.com/watch?v=OwH8KMlEq88

[Anonymous No.10137656]

>>10137578
>chart is a result of abstract market propensities
>analysis of these can have correlations to those events

[Anonymous No.10138022]

It shouldn't be taken as any legitimate means of determining how the market will actually change. It's based on the assumption that the entire market behaves predictably every time and the whole practice completely ignores that the market is made up of individuals which makes it inherently unpredictable, at least in any all encompassing manner. It's fun to think about and you get a nice ego boost on the occasions when the change in the market appears to reflect your vague and unspecific meme lines. It's fun to think about, gives you a sense of importance, but irrational to legitimately predict outcomes; it's essentially the market equivalent of horoscopes. The reality is that unless youre talking about an event that effects the way the market operates (such as mt. Gox, etc) the only time that you can know for sure how the market will react is after the market has already reacted.

[Anonymous No.10138223]

WTF I HATE FIBONACCI NOW!

If you dont use TA like Bulldivergence etc, you admit to gamble and you are fucking retarded.

[Anonymous No.10138768]

>>10137532
Ta is good at telling you what the market thinks right now, but it can't predict the future like some claim.

[Anonymous No.10138852]

>>10137532
It is subjective. Different TA methods can be interpreted in numerous ways depending on the indivdual.
Does it work? Yes. Very well. But in order for it to work you need to find the method that works well with the way it is interpreted by the individual using it. There is a near infinite amount of combinations of TA tools+method to use them. Systems can be proven to have objectively good or bad results based on historical data and walk-forward analysis. So basically, if it works for you that's all that matters. But that's not to say that an algorithm can out perform the best of discretionary trades, because they in fact cant.

[Anonymous No.10138859]

TA always has been and always will be complete bullshit.

[Anonymous No.10138867]

Modern-day tea leaf reading

[Anonymous No.10138869]

>>10137532
Yes

[Anonymous No.10138893]

>>10137532
No, it's not, sir! My TA predicted the SYS pump today, sir.

[Anonymous No.10138958]

>>10137532
it's not really bullshit, if you understand it's to be taken with a grain of salt. It's easy to delude yourself into thinking those lines actually matter. When, truthfully, they only exist to give you a better sense of the outcome of a probability. But, here's the funny thing about TA-- it's different for everyone(which is why everyone calls bullshit). Find a set of indicators that work for you-- there are the main ones though like MACD, RSI, 50/200 MAs but set them up accordingly to how you think. You can also play with laggard indicators, and stack them. In a way, some lagging indicators can you give you foresight on market movement. Like, when I see a MACD cross, I can presumably assume a Ichimoku cross will happen soon thereafter. Giving me an indication that now would be a potentially good buying opportunity. Then again, it's all cross referenced against support and resistance levels and volume and a whole mess of other factors. So, it's easy to miss one and fuck up. Anyway, hope that gives you some insight into TA and why there's merit but, also why there's not as well.

[Anonymous No.10138981]

TA a shit

[Anonymous No.10139000]

>>10137532
Yes. There is a possibility that very advanced machine learning type shit could be legit, but nobody really knows.

[Anonymous No.10139052]

>>10138958
how exactly are these "probabilities" calculated? It's not like craps where each number has static odds of showing up, or blackjack where you can keep track of the cards that have been played and compute the odds of the remaining cards. Tell me how exactly meme lines let you compute these supposed "probabilities".

[Anonymous No.10139073]

yo you finna wait for tha quintuple digits on tha bitcone cayush mah homies