/biz/ - Business & Finance

I knew I was right.

>>9379265
TA is self propecy at work
most bots use TA patterns to daytrade and this is why it works best on 5m/15m candles when the market is going sideways

>>9379580
I'm referring more to longer timeframes, hours to days. How can "patterns" on these frames possibly mean anything when the market prices new information in instantly?

>>9379654
yeah TA on longer time frames is total bullshit

>>9379654
cause only a certain percentage believes in TA

>>9379265
I never understood the "efficient market hypothesis" meme. To me the constant daily noise in the price is proof that it's not efficient. The daily price fluctuations aren't reflecting changes in actual value. Some TA patterns like triple tops or cup and handles.seem pretty sold. I don't think they need 100% effectiveness to be useful.

I'm a newfag so... I don't have a lot of experience with TA. that being said, I don't think that TA is like a crystal ball to look into the future. I think TA can give a trader rough estimates of market sentiment, entry price points, exit price points, and maybe an extremely generalized prediction. All the good TA fags that I've read always say something along the lines of... " if the price goes above this level, it has a chance to reach this level but, on the other hand if it goes to this other level then it has a possibility of going to this other level.

so, it seems to me that TA kind of reduces a million possibilities down to a hundred probabilities. if that makes sense.

>>9379669
Why would a cup and handle ever make a significant or discernible handle if everyone can recognize it as what it is?

It's because traders/bots are playing all the little price action in the falling wedge as well. The market isn't a zero-sum game.

>>9379746
I think follows logic in line with human psychology. If the price of the asset you're watching previously topped at 9k before running out of steam, and some time later it finally managed to break 9k, you're in new territory now. people who were previously apprehensive about a double top can buy in more freely now.

>>9379265
TA can't tell the future but it can keep you consistent in your movements and your system is far more likely to work if you stick too it and not trade emotionally like a woman

>>9379669
thats not quite the meaning of efficient. efficient just means all the available information is priced in at any time, this includes historical prices. thats exactly what TA works on: looking at the past and finding information.

>>9379666
im sure more capital is in the hands of believers than disbelievers.

>>9379265
ta is a description of psychological trends. psychology is quite idiosyncratic, thus two people trading against each other have different outlooks even with the same information because they have different starting points.
take for example a market of 100 traders with 1000 dollars each and 1 whale trader with 100000 dollars. as a bloc, the 100 traders might act similarly because they have similar positions in the market, whereas the whale would have his own play in spite of the 100 traders cumulatively having the same capital as the 1 whale.

>>9379265
Because TA is literally what it is called 'technical analysis'. You use it to analyze the market from a technical perspective. There is no profits or losses to be made from it but you can use it to develop a strategy that can make or lose you money. If you can develop a strategy that can beat the market and consistently make you money then TA works for you.

Thanks for the ideas chaps. I was being a bit hyperbolic to get some replies, but I appreciate the insightful responses.

>>9379654
That's one thing, but breaking the ATH resistance is so significant it would be on the news, moving averages may give you some idea about sentiment... I don't trade patterns but there are people that will stay on a side until they see the pattern break. And maybe it breaks because of news or because someone with a lot of capital decides to dump or... and that information gets priced in and other market participants react to it. I don't know, I'm more skeptic about measured moves from those breakouts.

>>9379265
TA exists because humans are not acting rationally.

>>9379265
ta is absolute bullshit and is laughed at by every reasonable academic and further only used by idiots or people who want to trick people to use it so they can collect provisions

no institution uses ta and if the only do it because their clients want it and not because it has any use

>>9379265
>Either TA doesn't work, or the market is extremely inefficient. Which is it?
Correct. It doesn't work.

>>9379265
TA is being ahead of speculative trends. Each application of TA changes ideal TA.

>>9381610
At most, anyway.
There's probably some TA that is remotely better than nothing whatsoever, but it's not the TA that someone else is sharing with you.

TA is a meme. If you know anyone actually on the floor you know insider trading is why the small % that beat the market do so.

Everything else is delusion and memelines.

t. Corporate finance

>>9379265
ATH matters cuz ever spastic is in the green by then

One could argue that this market doesn't know what the ath should be calculated in
Btc, eth, eur, usd? Its fucked

>>9381596
How are you guys not recognizing that it is a system with ta that makes it useable. You don't need a pattern to break a certain direction just statistics towards it.
The simple idea is on a pennant or whatever patterns you trade it gets close to a certain resistance line or breaks it, you buy. Set a stop below the line and move on. You don't need to predict the market it's simply for entries and exit strategies

>>9381589
Academics suck at trading.

>>9379265
TA is great if you are whale/market manipulator, having large pool of traders with predictable trading behaviors for you to exploit.

you can perfectly see on here why basic TA like support and resistance works. all you brainlets are talking about holding bags or whatever bullshit. the price drops and you want to hold on to your bags until you at least break even to sell without a loss. you are therefore likely to sell again at the same price you've bought. this means that price levels with a high volume act as resistance as you bagholders want to sell there. support is the other way around, just insert fomo instead of avoiding selling at a loss. you can even produce statistical evidence for that. i guess academics like the EMH because it's easy to work with. including concepts like support and resistance into the mathematical models is much more difficult than the EMH.

>>9381834
dietetics suck at cooking, but are right about fast food being not healthy

>>9381876
normies are bad at investing, but they were wrong about bitcoin being a bad investment some years ago. fucking brainlet.