Reading Assignment: Reading Assignment: Does Technical Analysis Work?

TA & Algo Trading Course
#61

  1. Risk management tool used to identify higher probability, actionable and risk defined (entry/exit targets and R) trades

  2. Trade Analysts looks at identifying the higher probability with risk management

  3. TA analysis works well when you apply research and risk management.

#62

  1. 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. TA is used to utilize historical data to develop future strategies.

3.Writer concludes that it is a good tool but doesn’t predict the future. Helps with risk assessment and better suited to disciplined traders.

#63

1. How does the writer define technical analysis?
Technical analysis is a probabilistic risk management tool that can

  1. generate new trade ideas
  2. convert price forecasts into actionable trades.

2. What are technical analysts looking to identify in the market?
When technicians are mapping out their levels/waves/indicators — whatever myriad of tools they use — the aim is essentially the same: identify and execute a trade setup offering asymmetric Risk:Reward.

3. How would you summarize the authors argument that technical analysis works?
Technical analysis is much more likely to work if you do it properly and take it seriously — like most good technical traders do!
There are several things to look at:

  1. Try to find assets with the highest risk/reward ratio. This means that your reward will be high and your risk will be low.
  2. Have an exit strategy: You want to take your profits at some time, because if the market goes in the way you expected, other traders will start to take profits and you should do the same! If the market does not got into the direction you expected you will have to cut your losses. Technical analysis is not about always being right. You only have a certain probability of being right with your assumptions. Bad traders will ride an assets to all time lows while hoping that it will recover and go to the moon. Good traders don’t care about being wrong sometimes and cut their losses quickly.
#64
  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. To find different risk-defined trade setups.
  3. Technical analysis is a riks management tool that can be used to derive probabilistic, actionable, and risk-defined trading setups on an instrument.
#65
  1. How does the writer define technical analysis?
    Technical analysis is a tool, that helps trader look past market behavior and find similarities
    and from that make future forecast of market and make calculated risk managed trade.
  2. What are technical analysts looking to identify in the market?
    Minimized risk to enter market and make profitable trade
  3. How would you summarize the authors argument that technical analysis works?
    — Technical analysis is not about knowing/deducing the future price of an instrument
    — The point of technical analysis isn’t to outperform professional
    — Not all technical analysis is equal — it’s much more likely to work for someone who takes it seriously (disciplined, systematic, etc.) than someone who just takes a punt
#66

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 .”

What are technical analysts looking to identify in the market?
To identify an edge to make higher probability trades with risk management.’

How would you summarize the authors argument that technical analysis works?
As long as it helps traders identify and trade asymmetric risk:reward trade setups, then it works.

#67
  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.

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

Trends and about whether it can help a trader carve out an edge and a positive expectancy in the market(s) they trade.

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

If technical analysis is used with Dicipline and systematic approach and keeping in mind fundamental analysis with a open mind than the chances of the technical analysis NOT working should in principle be smaller.

#68
  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?
A trade setup offering asymmetric Risk:Reward.

3.How would you summarize the authors argument that technical analysis works?
TA works if your dedicated person or if your a big Firm with more tech. Strategies work

#69

Practice of analysing the price history, in order to make actionable, risk-defined forecasts of its future price.
2.
They are using different tools, indicators, strategies, to catch the most optimal price entry or exiting points in the trade.
3.
As long as it helps traders identify and trade asymmetric risk:reward trade setups, then it works. Technical analysis is much more likely to work if you do it properly and take it seriously.

#70
  1. TA is a risk managment tool that analyse the price history of an asset in order to make actionable, risk-defined forecasts of its future price.
  2. TA is trying to identify asymmetric risk to reward ratio trade setups
  3. TA works becuse it meets the requirments to give a probability of the risk to reward ratio in a trade setup.
#71

  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. Probability of trends continuing or overbought/oversold conditions that occur at the time of trend reversals.

  3. Technical analysis can identify unbiased asymmetric risk/reward scenarios using price analysis algorithms.

#72

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

Basically making informed trade decisions based on risk assessment of previous transactions and trends.

  1. How would you summarize the authors argument that technical analysis works?
    The author defines the meaning of “works” in the sense that the practice of technical analysis will be useful to retail investors looking to reach reasonably measured goals, given a disciplined and systematic approach.
#73

  1. The writer defines technical analysis as a risk management tool which allows a trader to find trading setups which have a high possibility to be successful. That means a trader is looking at some technical tools/methods (moving average, rsi etc), combine these and derive out of this a risk-defined option of a successful trade. Technical analysis is not about looking at past data and predict the future price movement out of this. It is all about finding a trade opportunity which have a high probability that the price is going in the desired direction (can be both up or down) and the risk of the price moving in the opposite direction is very low.

  2. Technical analysts looking at past data, uses some tools (moving average etc.) for getting information out of the historic price movements, combine these and hopefully find some patterns in the past price data which indicate to a price movement. The found pattern result in a trade setup with a high probability to be successful. It doesn´t matter in this context if the price goes up or down. Trader looking for both price movements which have a pattern with a high probability of occurrence.

  3. The technical analysis is based on “simple” statistics (“just” choose trades with a high probability to be successful) in combination with a risk management (that means if something changes, stop your trade, because the circumstances has changed). If you stick to your strategy (be patienced, disciplined) in the long run, you will be successful, because it is more likely that you have more trades which are successful (instead of being not successful).

#74
  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.If the market is bearish or bullish.

  1. Technical analysis cannot read the future but it can reduce the risk when trading.The point of technical analysis isn’t to outperform professional desks and firms, it’s about whether it can help a trader carve out an edge and a positive expectancy in the market(s) they trade. Not all technical analysis is equal — it’s much more likely to work for someone who takes it seriously (disciplined, systematic, etc.) than someone who just takes a punt.
#75

  1. Technical analysis is a tool that helps you define probabilities based on models that can be traced in the past. But it does not confirm actual price based on price in the past. It helps as a risk management for future trades.

  2. It looks to identify set of trading rules which need to be used properly and seriously. Also TA can help you to identify your patience and strategy implementing moving averages.

  3. TA only works if it is used properly. It is not a competition tool that can define who can perform better and make more money. It works differently for everybody in terms of what is your end goal. Basically TA is a vehicle that should help you safely get to the market. Question is??? Are you going to make profit or not?

#76

  1. TA is the studying of patterns and charts to understand and predict price movement in a market

  2. Turning points, historical activity at certain levels.

  3. Simply that with technical analysis it is possible to analyze the market and in a systematic way trade a market for profit

#77

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

2- TA is looking to identify: probabilities, risk-defined trading setups on an instrument, new trade ideas and better odds.

3- The author believes that technical analysis ‘works’ because the requirements it has to meet for that to be true are not unreasonably high. It doesn’t have to predict the future, nor must it outperform better-equipped professionals. As long as it helps traders identify and trade asymmetric risk: reward trade setups, then it works.

#78

1 tool for risk management
2 the trend and risk
3 it helps a lot with predicting the general movement of a market and also how to manage your risk

#79
  1. Probabilistic risk management tool that can generate new trade ideas and convert price forecasts into actionable trades
  2. better odds and profitable trade setups over the long run
  3. More likely to work for someone who is systemic and disciplined
#80
  1. The writer defines technical analysis as a probabilistic risk management tool that a) generate new trade ideas b) convert price forecasts into actionable trades.
  2. Technical analysts look to identify and execute a trade setup offering asymmetric Risk vs. Reward.
  3. I’d summarize it in the way that it has a proven track record when utilized properly.
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