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18069652 No.18069652 [Reply] [Original]

is technical analysis pseudoscience?

>> No.18069662

>>18069652
I think so, I'm mostly in this one crypto that has legit triple bottomed and it still can't seem to sustain a pump

>> No.18069674

Yeah, its basically the Astrology of the Finance world

>> No.18069770

>>18069652
It has some merits, but it is greatly overrated.
For instance, random generated charts look almost identical to "real" charts, you can just as easily identify support and resistance zone on the random charts, as the real charts.

Most of the TA anyone makes is not real, it doesn't reflect any kind of underlying market sentiment that will reveal future price movements.

>> No.18069780

>>18069652
its nothing

lets say a chart looks nice... then coronavirus happens and everything goes down.... the end

real world makes the charts

>> No.18069820

>>18069652
It assumes a lot of things regarding human psychology still stand when the vast majoroty of modern markets are driven by relentless computers. So yeah, it's pretty much useless.

>> No.18069973

It is a tool used for coping with uncertainty, much like astrology. People use to make themselves feel better about taking risks and gives them something to blame when it doesn't turn out.

>> No.18070099

>>18069652
Finaly somebody who understands, yes it is.

>> No.18070110

>>18069674
astrology has more logic in it

>> No.18070137

>>18069652
Charts only show you what happened, real life is random and paints the chart. Sometimes past events can make people think that future events may repeat themselves or at least act in a similar way such as X asset being a certain price one before meaning it may once again. It’s much easier to assume that something may touch it’s old price again than to think something may reach new highs. Chart analysis is only moderately useful. It is not a future predictor.

>> No.18070160

>>18069652
Yes, it is literally Miers Briggs / Horoscope tier.

>> No.18070176
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18070176

>>18069652
I don't think anyone ever claimed TA was scientific. It just gives you a starting point for understanding risk versus reward. Then it's up to the trader to manage that risk.

To be mad that TA doesn't perfectly predict market behavior is missing the point.

>> No.18070190

>>18069652
i dont think anyone calls it a science to begin with
ta can be very simple, simply looking at the price at 2 points in time and basing something off it is ta.

>> No.18070222

>>18070137
Well put.

>> No.18070502

Just like blockchain based decentralized currency will be mandatory in future, there will be requirement of decentralized internet
in future which would be secure, maintain privacy & restriction free, one of the firm working on this technology is Tachyon protocol which is powered by Vsystem & X-vpn.

>> No.18070541

>>18069652
No because it doesn't even claim to be a science.

>> No.18070769

TA is fake and gay, I'm serious

>> No.18070790

TA and indicators dont work
>ok what works then?
market sentiment, supply and demand, human behaviour (only the extremes)

t. bursa malaysia trading desk staff

my advice to swingers is never sell at a loss, buy every dip, increase your position, sooner or later when your project pumps, the profit from your recent buys will cover your earlier losses

>> No.18070920

>>18070176
>>18070190
/this.
most people ive seen use TA charts to discuss and consider the markets always make a huge emphasis on taking it all with a grain of salt.
the smart ones usually qualify every analysis with some kind of statement like, "this is what the pattern of activity and functionality was in the past up to now, and this is [X function] is what might trend in the future, BUT ANYTHING COULD HAPPEN AT ANY TIME"

>> No.18070988
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18070988

>>18069652
>is technical analysis pseudoscience?
Yes, nowadays it's even logarithmic

>> No.18071946

>>18069652
you have to be older than 18 to be on this site.

>> No.18072388

>>18070176
join @ChadLounge on telegram

>> No.18072484
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18072484

TA is cyclic
price go up and down
even if you just trade depression swings of selling autumn/winter and buy in the spring/summer you can make money
most big dumps have happened in the winter, if you apply some memelines you can predict even better and catch some tops/bottoms

if you completely dismiss it without even some dyor, you are unironically a brainlet and belong on leddit

>> No.18072555

>>18069674
>>18070110
Look up "uranus in taurus". There were lots of astrologers predicting a second Great Depression.
https://www.astrology.com/article/uranus-enters-taurus

>> No.18072571

>>18069652
>That pic
yeeee

>> No.18072590

>>18072555
>your anus enters the bull
you cant make this shit up

>> No.18072638

Kinda, most formations have sound theory behind them, the problem is that in such a chaotic system there multiple other factors in play. So statistically TA formations turn out to accurately predict the future very rarely. In other words it's useless and is only good for describing the past, not for predicting the future.

>> No.18072744

A lot of people fail to apply common sense to their technical analysis. A prime example would the pump and dump scam that people here fell for yesterday with biomedical or w/e that company was called. If people would have noticed that the company had a $27k market cap, had a history of making spammy/meme claims for attention, and that there were 4 other companies with covid-19 vaccines trialing on animals, and 1 beginning to run trials on humans, they could have easily deduced that a large investment into that company would be retarded. But, because one anon posted a graph with big green arrows other people fell for it and bought, doubling the stock price in a few hours (because it was such a tiny company to begin with), at which point the original poster was laughing all the way to the bank after dumping his stock.

Looking at the graph it looked like a sure buy, but when you dig deeper and actually do some research it becomes apparent how stupid that would be

>> No.18072928

>>18069662
It's not even psuedoscience, it's bunk

>> No.18073332

>>18069652
>pseudoscience
>pic related literally forms an accurate drawing of a dinosaur, which can't possibly be an accident

>> No.18074934

>>18069652
There is this theory where if people discover an indicator it will start to act differently, simply because it's watched & reacted to.

>> No.18075474

>>18069652
Playing devil's advocate here, isn't technical analysis essentially a self-fulfilling prophecy?

For example, if everyone believes there will be a small rally once the price drops two standard deviations it will come true because everyone believes that it will.

>> No.18075604

>>18070790
>my advice to swingers is never sell at a loss, buy every dip, increase your position, sooner or later when your project pumps, the profit from your recent buys will cover your earlier losses

Markets can remain irrational longer than you can remain solvent.

>> No.18075642

>>18069652
Same as economics. It is all just like horoscopes or nerds. They like voodo number magic

>> No.18076196

>>18069652
Indicators try to understand the psychology of the human.

>> No.18076233

>>18075604
i know but this can prevent retail traders from panic sell and to reduce the effect of fomo buy... it is better for the ones who cant control their emotions.

>> No.18076252

>>18069652
Its non-falsifiable meaning it can’t be ever labeled as science

>> No.18076347

>>18070790
>sooner or later when your project pumps
That requires fundamentals. Lots of companies go bankrupt for all sorts of reasons, often very suddenly once their poor fundamentals become widely known.

>> No.18076539

>>18075474
This is a good point

>> No.18076583

Some people consistently make money with TA. It’s a skill you hone.

>> No.18076714

Ta only works in the back of your mind. You look at the charts and it gives you a gut feeling of how the underlying will move.

>> No.18076745

>>18070790
>t. bursa malaysia trading desk staff
bro lets meet up

>> No.18076762

>>18069652
yes. you just buy what's shilled sell for btc and that's it. for example now you gotta buy zano

>> No.18076919

It's good to see up channels and down channels, so trends it works well with.

Bill flags (with proper volume) and double tops/bottoms have also been decent.

Far from the end all, but it can help.

>> No.18077571

Law of large numbers is pseudo science?
Linear regression (trend channels) is pseudo science?
Mean reversion is pseudo science?
Last time I checked it's just probability theory.

>> No.18077790

>>18069674
I'd say it's more similar to meteorology. It can be very accurate short term, even kind of accurate long term sometimes, but it's always susceptible to error and it's hard to forecast far out unless you have a jew almanac

>> No.18078324

>>18069652
Almost right. It's supposed to have its head down drinking water for the pattern to be correct