Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#41 
1.	How does the writer define technical analysis?

Technical analysis is the practice of analysing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price.

**2. What are technical analysts looking to identify in the market?**

are looking for better odds and for their setups to render them profitable over enough trades.
3. How would you summarize the authors argument that technical analysis works?
Technical analysis ‘works’ because the requirements it has to meet for that to be true are not unreasonably high. . As long as it helps traders identify and trade asymmetric risk:reward trade setups, then it works. + right mindset

#42

  1. technical analysis is a tool used by looking at price history to create actionable, probable and risk defined trading set up.

  2. ta’s are looking to identify trends in the marketplace and use this information to build actionable, probable and risk defined trading set ups.

  3. the author concludes that ta works because the definition of ‘works’ is subjective. The goal is to build strategies that end in profit moreso than not. In this sense, you would end a period in profit, as opposed to loss, over a period of time.

#43

“Technical analysis is the practice of analyzing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price”.
2.
Searching for entry points in the market price movement that presents a prominent asymmetric risk/reward likelihood ratio.
3.
As long as, disciplined traders act upon the signals, technical analysis is a helpful tool to find setups with a good risk/reward ratio, that most probably will have more winning chances in the long run.

#44

1. How does the writer define technical analysis?
“Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument”

2. What are technical analysts looking to identify in the market?
i) generate new trade ideas ii) convert price forecasts into actionable trades.

3. How would you summarize the authors argument that technical analysis works?
Technical analysis is not used to determine a price point, but rather as a tool to have a more well-rounded analysis for when to enter/exit a market by using the tools at one’s disposal. Technical analysis, coupled with patience and discipline are needed to be an effective trader.

#45

1.How does the writer define technical analysis?
Technical Analysis is a risk management tool that allows us to make actionable risk aware
trade decisions based on the price history
2. What are technical analysts looking to identify in the market?
Setups, trends, risk:reward
3. How would you summarize the authors argument that technical analysis works?
“TA “works” because the requirements it has to meet for that to bet true are not unreasonably high.” - CryptoCred, if you are in crypto you know him.

#46
  1. Writer describes technical analysis as a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument.
  2. Technical analysts are trying to identify patterns in the market.
  3. Technical analysis works when it helps traders identify and trade asymmetric risk:reward trade setups.
#47

  1. In the article the writer defines TA as “the practice of analyzing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price.”

  2. They are trying to identify actionable “plays” based on their market predictions.

  3. If a trader is able to profitably use TA in order to make buy and/or sell decisions it works. It is up to the individual trader or firm to determine success. Since TA can only give probabilities, no one can have 100% success.

#48

  1. How does the writer define technical analysis?
    Technical analysis is a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument, by analyzing its price history.

  2. What are technical analysts looking to identify in the market?
    Asymmetric risk (reward) opportunities for their trade setups to render profit.

  3. How would you summarize the authors argument that technical analysis works?
    Technical analysis doesn’t need to predict the future or outperform better-equipped professionals. As long as it helps traders identify and trade asymmetric risk/reward trade setups (as it has over the years) it works. Also, it doesn’t need to be incompatible with other approaches as Fundamental Analysis.

#49

1. How does the writer define technical analysis?

Technical analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades.

2. What are technical analysts looking to identify in the market?

Technical traders, irrespective of whether they are discretionary traders or using some sort of automated strategy, are looking for better odds and for their setups to render them profitable over enough trades.

3. How would you summarize the authors argument that technical analysis works?

If we are NOT asking whether technical analysis can predict the future. We are also NOT asking whether technical analysis means retail traders can bodybag professional trading firms. If we then specify the question on can technical analysis generate risk-defined trade setups? Then yes it can, and as long as it helps traders identify and trade asymmetric risk:reward trade setups, then it works…

#50

1, T.A. is the practice of analysing the price history of an instrument in order to make actionable risk defined forecasts of its future price.
2, Trade set ups offering asymmetric risk:reward.
3, It doesnt have to predict the future or outperform the professionals. It just needs to help you identify and trade asymmetric risk:reward trades. The requirements it needs to meet for it to be true are not unreasonably high.

#51
  1. How does the writer define technical analysis?
    according to the author

Technical analysis IS a risk management tool that can be used to derive probabilistic, actionable, and risk-defined trade setups on an instrument

  1. What are technical analysts looking to identify in the market?
    basically they all want to identify scenarios of asymmetric Risk:Reward.

  2. How would you summarize the authors argument that technical analysis works?
    Technical analysis is a risk management tool and cannot predict the future price of an asset, it frames what positive expectancy looks like in the market(s) they trade. Also it takes discipline,and hard work to be successful, there are no free rides.

#52

  1. He defines it as a set of probabilistic rules that are aimed to give a trader a statistical advantage when applied correctly.

  2. Technical analysts are looking to identify structure and patterns in the market.

  3. TA is good and should be used in conjunction with FA to make rational decisions about your trades

#53
  1. How does the writer define technical analysis?

The writer defines technical analysis as “technical analysis is the practice of analysing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price”

  1. What are technical analysts looking to identify in the market?

Technical analysis is looking at privius market movments before a bull and a beer to identify probabilistic price actions and a risk defined trades.

  1. How would you summarize the authors argument that technical analysis works?

The authors argument that technical analysis works because the exspections is not that it should at preform anyone else just show the lights of probebalistic price actions to help trades preform risk difined backed trades insted of trading with no tools.

#54

1.How does the writer define technical analysis?
technical analysis is a probabilistic risk management tool that can i) generate new trade ideas ii) convert price forecasts into actionable trades .
2. What are technical analysts looking to identify in the market?
trade setups that give them an asymetric risk:reward posibility
3.How would you summarize the authors argument that technical analysis works?
Technical analisis doesn’t work miracles and it doesn’t predict the future however for the trader with realistic expectations it can give indications of probabilities of risk reward situations that can asist the trader in making good decisions.

#55

  1. “technical analysis is the practice of analysing the price history of an instrument in order to make actionable, risk-defined forecasts of its future price”.

  2. TA tries to identify trends for the future bullish or bearish to maximise the wins and reduce to the minimum the losses

  3. TA should be used to create risk defined rules or setups

#56
  1. He defines it as a risk managment tool for making trades based on probabilities on financial instruments.
  2. They are looking to identify and execute a trade setup offering asymmetric Risk:Reward.
  3. I would summarize it that it works under certain circumstances when analist has patiance, goal, discipline and is very systematic.
#57
  1. TA is a risk management tool that can be used to define probabilities trends in trades
  2. They try to find edges that have a good probability for successful trades under a good risk managment.
    3.I is not meant for price predictions, neither is it a mathematical exact science. But together with a good risk management and strategy and discipline by the trader it will yield good results.
#58
  1. How does the writer define technical analysis?

As a practice, consisting of price history analysis, used in assessing risk and forecasting price.

  1. What are technical analysts looking to identify in the market?

They are looking to identify a trade set up that presents more potential for profit with less potential for loss.

  1. How would you summarize the authors argument that technical analysis works?

Technical Analysis does not exist to predict the future or outperform traders with better tools. It exist to assist traders in creating trade set ups with potential for profit.

#59

  1. How does the writer define technical analysis?

  2. What are technical analysts looking to identify in the market?

  3. How would you summarize the authors argument that technical analysis works?

  4. TA is a tool for managing risk when deciding on trading strategies.

  5. Repeating patterns that could be used for future trading.

  6. It works because you are being disciplined in executing trading in a way that you estimated is the best practice to give you highest chance of success.

#60
  1. Likened to fundamental analysis.
  2. Bullish and bearish trends.
  3. It works because of the trends , cycles, patterns that are followed over time.