Is Technical analysis bullshit?

[BitHodler]

This industry is driven by FuD or FOMO and this rubbishes TA. In forex trading, it isn't so. TA rules.

It perfectly shows that it all comes down to how many equal minded entities there are in a certain market, which definitely applies to forex and to a tiny lower degree stock markets.

I must however point out that currently there isn't all that much fud and fomo going on in the crypto space, which means that it will allow TA to become a useful indicator, and the firm range pretty much confirms that.

There are less noobs trading right now, and less noobs dumping for no reason. I like how calm this market is and hope that it will last for a longer while. Sending $100 worth of Bitcoin today means it is still $100 next week.

How can someone dislike that?

[1714791259]

1714791259

[1714791259]

1714791259

[1714791259]

1714791259

[1714791259]

1714791259

[apimembership]

Technical Analysis and Fundamental Analysis should be considered together , not seperately. TA is just a way to interpret the market behaviour and give us some clue. You cant expect TA to tell you exact future everytime. FA and TA should be analyzed carefully but at the end you would decide what you should do.

[trutel]

Fundamental analysts and technical analysts should be aligned. You will find out if the altcoin you buy or sell is too cheap what is too expensive through technical analyst methods. There are many indicators, if you use RSI select 14 periods. Or boilinger as a confirmation of the trend.

[coinplus]

If enough people are following and actually acting based on what the charts are pointing out, then it's very likely going to work, but this market is too unpredictable to purely focus on that. TA works pretty well based on how traditional investors and institutions apply it on stocks and such. The crypto market is literally infested with empty headed fools gambling their savings based on nothing but hope. I think it's safe to say that with how this market will become more professional throughout the coming years, TA will become far more of a fundamental driver than it is right now, but that directly means the volatility will significantly decrease as well.

That is it. The market is so unpredictable and a lot of traders like you said in the crypto world are basically just gamblers. I would not say Technical analysis still does not work in cryptocurrency, but works far better in Forex or stocks and this is because we are in a decentralized market and I do not actually expect anything less.

I feel most times, the prices can be manipulated to give fake signals, and since one already know all of that, it is best to always know how to minimize the risk in most places. Stop loss are there for reasons in the market and not for decoration anyway.

[AbyssLagiaz]

You had pointed out "pure TA" which presumably that your really depending on it fully. How? Does the price of the exchange not apply to you as you sell? Since the behavior of the market is truly unpredictable, as what everyone mostly stated in here. The instinct of one's self in trading is what matters the most.

~ Do you think that the price will move the same way it was last week? Consider the pattern it makes to lessen your confusion upon the unpredictability of the market itself.

~ The news don't truly drive the prices itself. It is the quantity of the people reacting into the news.
"X coin will reverse in price this week, *insert economists here* stated." Because of these speculations made by known people, the people in crypto decides to react upon their own understanding in the news. Sell or buy, it doesn't matter. They will react upon what is being said in the news.

[coffigayo]

Technical analysis works with any asset that has a chart to show its historical price. The only problem with technical analysis and crypto is that, the majority of traders rely on speculation to determine their prices rather than on technical analysis. That just keeps us trapped in situations like price dumps. and it makes the head feel as if it will crumble making its own analysis by holding on to some predictions will be better than RSI.

[alan2here]

I am not yet sure if TA actually works with crypto currencies.
I haven't had any success with pure TA so far. However fundamentals and news seems to do better job at predicting the price of a crypto.

Or Am I doing it wrong? I tried a simple RSI strategy to trade and it didn't workout well.

Should I even bother with technical analysis when it comes to cryptos?

Technical analysis is a necessity in making investment decisions or speculation. I think you have not yet passed a standard class on investment. You need to spend more time to learn and read more before investing.
Theory is essential to this work. You need to improve your knowledge as much as possible.

[IggySe7ven]

If you really know how to trade, then it is not bullshit because you are gonna make a lot of profits because of your chart reading skills, and trust me, it is good enough for a starter.

[naidray]

I am not yet sure if TA actually works with crypto currencies.
I haven't had any success with pure TA so far. However fundamentals and news seems to do better job at predicting the price of a crypto.

Or Am I doing it wrong? I tried a simple RSI strategy to trade and it didn't workout well.

Should I even bother with technical analysis when it comes to cryptos?

TA still works in cryptocurrency but 80% of the time is bullshit and your best bet is to always use your discretion with a very tight stop loss most of the time before making a trading decision.

This was what exactly brought me to the idea of a huge manipulation in the crypto space but I am not surprised since much of that should be expected in a new environment that is completely decentralized in a way, and sometimes, it is more like the whales always love giving the traders wrong signals, and once they hit the market, they gain a lot from stop loss being hit.

[Itjoker]

I don't agree with the opinion that technical analysis is bullshit. Of course it is not easy to predict coin price, but you can achieve excellent results if you use technical and fundamental analysis in aggregate. Because only technical analysis will help confirm the entry point to the market and point to a more favorable time for it. And fundamental analysis can provide an opportunity to choose right asset for buying.

[blindminer]

This industry is driven by FuD or FOMO and this rubbishes TA. In forex trading, it isn't so. TA rules.

It perfectly shows that it all comes down to how many equal minded entities there are in a certain market, which definitely applies to forex and to a tiny lower degree stock markets.

I must however point out that currently there isn't all that much fud and fomo going on in the crypto space, which means that it will allow TA to become a useful indicator, and the firm range pretty much confirms that.

There are less noobs trading right now, and less noobs dumping for no reason. I like how calm this market is and hope that it will last for a longer while. Sending $100 worth of Bitcoin today means it is still $100 next week.

How can someone dislike that?

I guess you are in the market for a while and don't have challenging goals set for this year (example: financial freedom) otherwise  you would not like stability as it is a trade killer but I agree that the growth we saw in december last year was simple not sustainable

[Fatunad]

I am not yet sure if TA actually works with crypto currencies.
I haven't had any success with pure TA so far. However fundamentals and news seems to do better job at predicting the price of a crypto.

Or Am I doing it wrong? I tried a simple RSI strategy to trade and it didn't workout well.

Should I even bother with technical analysis when it comes to cryptos?

TA still works in cryptocurrency but 80% of the time is bullshit and your best bet is to always use your discretion with a very tight stop loss most of the time before making a trading decision.

This was what exactly brought me to the idea of a huge manipulation in the crypto space but I am not surprised since much of that should be expected in a new environment that is completely decentralized in a way, and sometimes, it is more like the whales always love giving the traders wrong signals, and once they hit the market, they gain a lot from stop loss being hit.

Stop loss is always been recommended into this cryptomarket and as a trader for you to avoid on being burned in the end. The thing i do like when i do trade up on here is that you wont able stop your negative floating which is unlike on forex once balanced or usd account is depleted it would automatically cancel out an order and leave you a burned account which do differs on here. Once you bought even though its negative as long you arent selling it its still not considered as loss. Technical analysis isnt bullshit but there are really times or most of the times it doesnt really work on what you are expecting.

[genolica]

Why? This is the technique people who are good in crypto. I don't know, there were some people whose bad at it. And there were people that were good. Up to you where to believe.

[Hell-raiser]

I am not yet sure if TA actually works with crypto currencies.
I haven't had any success with pure TA so far. However fundamentals and news seems to do better job at predicting the price of a crypto.

Or Am I doing it wrong? I tried a simple RSI strategy to trade and it didn't workout well.

Should I even bother with technical analysis when it comes to cryptos?

It doesn't work consistently even on regular markets, let alone cryptocurrencies. There are basically two ways of making money in any market (unless we include pure luck). The first you already mentioned, and this is using fundamentals (like, for example, in crude oil and other commodities). The other method comes down to milking the market somehow by using arbitrage, insider info, front running (if you are an exchange or market maker), or whatever other methods and instruments exist that I'm not even remotely aware of. As you can see, TA doesn't belong to any of these two categories.

[darth_cryptorider]

Technical analysis working but not always as you expected. That's way beginners always complain about technical analysis, you need to see the bigger picture. You cant trade only from one indicator or 1 strategy you must see major variants and possibilities for price moving. And don't forget that sometimes whales just manipulate the market.

[Mpamaegbu]

Stop loss is always been recommended into this cryptomarket and as a trader for you to avoid on being burned in the end.

I rather tether than use stop loss in crypto trading. I believe stop loss here is highly inconsequential. Why use SL when you can just have a wait for price to revert, whenever. Accounts hardly go into margin call except where a coin is delisted from an exchange. In Forex SL is necessary but in crypto it's optional. That's how I see this anyway.

[btcblockchain]

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

[newwest]

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 useful and give you a direction where the market is heading towards. Though in crypto currency due to such a volatile market it may not be always accurate and also speculation sometimes makes it more difficult for the technical analysis to go right.

[iram3130]

Its not complete Bulls**t, but in the bearish market as its going right now, technical analysis wont be helpful. Right now everything depends on Bitcoin and how it will move in the next weeks.

[Bonsaiav]

I am not yet sure if TA actually works with crypto currencies.

TA is just a tool or media that will help us in analyzing market developments that occur at the time or also can be said collection of active summary of cryptocurrency activities, so far for those who are experts in using them able to manage the risk of trading well. Both in the event of a decline as well as an increase it's also often used by them to strengthen its predictions