Is Technical analysis bullshit?

[manggis97]

Yes TA not really work in crypto trading because crypto  has high volatility, any crypto going up more than 10 times just in amonth and this is because that coin has strong fundamental and solid team member . So to maximize profit for the better spend more times to learn about fundamental of the project. Fundamental analysis is more usefull in crypto trading than TA.

[Hell-raiser]

With the help of technical analysis, traders and investors can predict the right time to enter and exit a trade thereby enabling good returns.

They actually can't predict the right time to enter or to exit. All the different layers within the TA book only make sure that in certain situations you have better odds than the standard 50/50 shots. As long as the better odds make sure traders settle more profitable than losing trades, they have done exceptionally well.

In practice, it doesn't work anywhere like that. First of all, it is not about "better odds than the standard 50/50 shots". It is your total in the balance of profits earned and losses suffered which counts in the end, not the number of "shots" and the relationship between misses and hits per se. You can make like 90% losing trades and still come off profitable in the end simply because with just one profitable trade you can cancel out a dozen of losing ones, and with a vengeance. Further, I'm not sure if you can implement this approach and achieve such an outcome using standard TA even theoretically as this has nothing to do with the essence of technical analysis as such.

[Supercrypt]

Technical analysis works with any asset that has chart to show it historical price. The only problem with technical analysis  and crypto is that, majority of traders depends on speculations to determine their prices not on technical analysis.

No, except if they are newbie traders. A lot of traders still make use of TA and it works sometimes, whereas sometimes it does not. Nevertheless, that is how market basically is and for a market as volatile as cryptocurrency, a lot can change things pretty fast, so it is best not to always rely fully on TA or simply keep a very tight stop loss most of the time.

Technical analysis has failed me several times but stop loss will never do. The reason why the stop loss is there is because the possibility of technical analysis failing may be there, so I guess we just have to remember to put stop-loss once we enter the trade. Trailing stop-loss is an improved version which might be possible through the same technical analysis only.

[ufalo3]

the technical analysis is nt bullshit but the crypto market is growing as of now the market is improving in terms of volume and investors so the market reaction for news will be speculative in nature

Technical analysis is always very useful but only when you can do it and understand it. I think that the newbie unfortunately will not understand anything in TA.

[arnoldrimmer]

I dont get it, why it would be bullshit? if you are a trader you must know that trading and technical analysis are like a couple in here , and it is a must

[dunfida]

With the help of technical analysis, traders and investors can predict the right time to enter and exit a trade thereby enabling good returns.

They actually can't predict the right time to enter or to exit. All the different layers within the TA book only make sure that in certain situations you have better odds than the standard 50/50 shots. As long as the better odds make sure traders settle more profitable than losing trades, they have done exceptionally well.

In practice, it doesn't work anywhere like that. First of all, it is not about "better odds than the standard 50/50 shots". It is your total in the balance of profits earned and losses suffered which counts in the end, not the number of "shots" and the relationship between misses and hits per se. You can make like 90% losing trades and still come off profitable in the end simply because with just one profitable trade you can cancel out a dozen of losing ones, and with a vengeance. Further, I'm not sure if you can implement this approach and achieve such an outcome using standard TA even theoretically as this has nothing to do with the essence of technical analysis as such.

People or most traders do focus out on the trade counts either losing or win ones but i agree that succesibility would matter on the profits you do made no matter how many trades being done. This would entirely depend on how you do manage orders and the risk you putted on. I wont say technical analysis is bullshit because this is commonly an indicator which most traders do make use, might not be accurate but would give you idea or basis on how you would execute your potential move.

[vv181]

There is no legitimate proof technical analysis is working charmingly. But Indirectly when every trader uses the technical analysis to trade, combined they will somehow make the technical analysis valid since its used by many people.

[BitHodler]

You can make like 90% losing trades and still come off profitable in the end simply because with just one profitable trade you can cancel out a dozen of losing ones, and with a vengeance.

That highly depends on how people prefer to trade. If you trade in a way that 1 trade can undo 10 losing trades, you are not aiming at consistent gains per trade, but just hope to ride the market for a longer while and profit more.

If that works for you personally, that's great, but not every trader wants to follow that system. Consistency (as far as possible) is more important in my opinion. I wouldn't feel comfortable waiting for something that might not happen.

Securing profits when your minimum target has been met is just easier overall. There is no need to waste more time on a trade than needed.

[ngacengan]

it does not seem to be because I see the analysis technique is not too bad or just nonsense because I see with technical analysis you can determine the right time to buy and sell coin and can be your reference when you want to buy coin.

[biogesic]

fundamental analysis is likely more BS than technical analysis. you can thrive in trading just by TA alone.

[neocryptrix]

I used to think that Crypto was all about speculation and would buy news stories only to get dumped on hours later. TA can teach you how to recognize patterns and make calculated moves like buying on support and selling at resistance. It really improves your confidence making moves, and even when you're wrong you can learn why and try to improve for the next trade.

[yndye]

I used to think that Crypto was all about speculation and would buy news stories only to get dumped on hours later. TA can teach you how to recognize patterns and make calculated moves like buying on support and selling at resistance. It really improves your confidence making moves, and even when you're wrong you can learn why and try to improve for the next trade.

That would be right. Technical analysis gives you a perspective of when to buy and when to sell. There are different kinds of traders that uses different kind of strategies. Just because one is not successful in trading technical analysis or fundamental analysis doesn't mean that it is not effective. We all have different strategies in approaching the market and there is not so called "holy grail" in trading because no one can predict the future. One cannot say that the strategy of one person is more effective than the other because it would be a matter of being a consistent profitable trader.

[Shadon24]

Technical analysis is a very useful and useful job that gives us a great deal of knowledge and broad understanding of the insights through analysis as well as what we already know.

[shiroocrypto]

Technical analysis is not a silver bullet ... Same can be said with fundamental analysis

The real problem that there is no standards body or certified advisors when it comes to technical analysis and fundamental analysis in the crypto world. What then happens is that the people you tend to follow slip up or don't make sense which causes losses.

[Hell-raiser]

I used to think that Crypto was all about speculation and would buy news stories only to get dumped on hours later. TA can teach you how to recognize patterns and make calculated moves like buying on support and selling at resistance. It really improves your confidence making moves, and even when you're wrong you can learn why and try to improve for the next trade.

That would be right. Technical analysis gives you a perspective of when to buy and when to sell. There are different kinds of traders that uses different kind of strategies. Just because one is not successful in trading technical analysis or fundamental analysis doesn't mean that it is not effective.

This is the problem with technical analysis as such. Technically (no pun), you cannot prove it being ultimately wrong because you can always find a method, instrument, or indicator that would predict a correct outcome, in hindsight. On the other hand, fundamental analysis is different in this respect as it cannot be wrong or right depending on the chosen instrument. In other words, if done right and properly, it will give you more consistent results in the long run. Ultimately, it reflects your understanding of the factors that affect the price of an asset you are interested in, how well you know this asset.

[usmanov123]

TA is a great tool for measuring risks/rewards ratio. Support and resistance levels are very important imo. But to buy or sell coins based on indicators is stupid and people will get rekt sooner or later blindly following this strategy.

[AlaEhBTC]

It works, but sometimes not because we cannot really determine if the price will go down or up. But using technical analysis is much better when buying and selling rather than using a hint.

[Hell-raiser]

You can make like 90% losing trades and still come off profitable in the end simply because with just one profitable trade you can cancel out a dozen of losing ones, and with a vengeance.

That highly depends on how people prefer to trade. If you trade in a way that 1 trade can undo 10 losing trades, you are not aiming at consistent gains per trade, but just hope to ride the market for a longer while and profit more.

If that works for you personally, that's great, but not every trader wants to follow that system. Consistency (as far as possible) is more important in my opinion. I wouldn't feel comfortable waiting for something that might not happen.

I definitely see what you are trying to say, but with that attitude I can't understand what you (or people you are describing in your post) are doing in this business (I mean trading, of course). You can't possibly do consistent profits in trading unless you can milk the market in some way, but you would likely be in the 0.1% market strata anyway. For the rest of the pack it is the relationship or balance between losses and gains which is their element and natural habitat. But in that case you can't talk about "consistent gains per trade" unless you mean averages. And with averages there is no difference between 1 winning trade versus 10 losing trades and 1 winning trade versus 1 losing trade as it is all averaged in the "gains per trade" metric, which would be the same in both cases provided you earn and not lose overall.

Securing profits when your minimum target has been met is just easier overall. There is no need to waste more time on a trade than needed.

Then you will earn dust. Fortunes are made (as well as lost, for the record) with long-term holding, not petty trading.

[simpleholmes]

TA is just a tool that gives you an insight about the specific coin but when the market is bad and everyone sees loses than it is up to you to not base your investment only on one factor .

[doomloop]

Yes TA not really work in crypto trading because crypto  has high volatility, any crypto going up more than 10 times just in amonth and this is because that coin has strong fundamental and solid team member . So to maximize profit for the better spend more times to learn about fundamental of the project. Fundamental analysis is more usefull in crypto trading than TA.

You might have some other opinion but like everyone knows if we don’t have any knowledge or technical analysis, this can of great loss to you. We may lose something extraordinary because we might not be able to detect the flaws and problems in market. With technical analysis, we are able to see some aspects of market. With that, your results can be increased or enhanced.