Is Technical Analysis a farce

[vinodkiyer]

with my observations, one thing i feel convinced for intraday is that to go with price alone and keep lookback as short as possible

 

[rigel]

Indicators are valuable tools in trading but we have to know their limitations. Vast majority have the desire to apply them as stand alone Buy and Sell signals, hence the plethora of vendors selling get rich quick systems, especially in the world of forex.

Just a few moments of dwelling on the way we calculate those indicators will reveal their logical fallacy.
I have mentioned this elsewhere but repeat once again.
Lets take price "A" , which is a variable,
Now we slice and dice it to create an indicator value "X" which inherently is also a variable since it is derived from "A".
We then set about forecasting the movement of variable "A" using Variable "X",

There are very successful traders out there who mix them with price action. and there are others who do not use them at all.
I know a couple of guys, one employing entirely Wyckoff principles, reading charts via price and volume only , made invaluable contribution to a forum dedicated to Wyckoff which has remained out of public domain for decades.
Recently there is another trader who trades live, you can sit over his shoulder and watch how he reads bar by bar, again with the use of only moving average.
Provided the links before , but for some reason saw the post disappear , guess one of the admin guys in here in his or her wisdom decided that to erase that.)))))

 

[SavantGarde]

Thread is being closed on request through PM by Thread Owner

SavantGarde