what is point of Tehnical analysis?

[AakZaki]

Technical analysis is indeed not 100% correct because it is only an analysis as a pointer to where the market will go next. Technical analysis is also associated with fundamental analysis and both are continuous. Have an attachment so that both can describe the state of the market. Fundamentals can indeed be controlled, but fundamentals still refer to technical analysis. Market speculation carried out by Whales does provide a big move, it will also play a role in market psychology.
A professional trader not only relies on technical analysis but also relies on the Fundamentals and combines them.

[1714622502]

1714622502

[Lakai01]

In my observation, technical part is only up to 50% in our success rate. The remaining is depending on how effectively you are managing your risk and emotional things and more importantly where you open your trade on one particular day where other factors like news, exchange volumes and etc are in your favor or against you.

I see it the same way. Especially newcomers rely 100% on signals and set their trades accordingly... and are of course immediately disappointed when this does not work and a trade fails.
What also helps a lot is to know the market very well, e.g. it makes little sense to bet on rising prices when the futures expire. On the other hand, major announcements are usually positive price drivers.

[doomloop]

Especially newcomers rely 100% on signals and set their trades accordingly... and are of course immediately disappointed when this does not work and a trade fails.

Relying on anything for all 100% may not work consistently because results from trading is not technical all the times like market may get influenced by news and events which may not be covered by technical indicators all of sudden.

I guess it would be much better on being too selective while choosing signals for our trading. This way I am sure we can find the real meaning of technical analysis

Even after strong technical analysis, traders are hitting stoploss, then I believe we need to filter out too good signals for trading by skipping all others. This may not be possible when we are not fully aware of market fluctuations but when we experience how crypto market works then we can easily select right signals based on timing, pattern, cycle and other similar data.

[beerlover]

A professional trader not only relies on technical analysis but also relies on the Fundamentals and combines them.

Fundamentals may not help you for your day trading still you can combine it along with your technical analysis because having something than usual might be giving you extra advantage over others; it is like when all others are going for shorting bitcoin but you can keep your buying positions intact because you are believing into the fundamentals of bitcoin. It means you might have something up to core fundamentally so that you can easily make use of it in your trading.

People tend to change their technical things according to market condition which might be the other reason why they are finding it pointless at the end of the day. We must need to confident about our technical things like if our technical things are not working then we should exit at stoploss rather than we simply avoid it and go for trading randomly.

[Wind_FURY]

It’s usually 1% - 5% per trade.

This has nothing to do with technical analysis but with one's own trading strategy and personal risk tolerance. However, 5% is far too high even for very risk-averse traders, as the capital would be used up after 20 failed trades.

Personally, I trade with a maximum of 1%, but for such trades, many (of my) indicators must point in the same direction, which is very rare.

Nothing indeed, that’s why I replied to the other person that his reply was an over-simplification. Technical Analysis alone will not make you a successful trader. It also needs management of capital and the correct sizing for your trades depending on volatility.

Don’t get out of context, I said 1% - 5%. 5% is also indeed high but there are times you need to take on larger risks when the probability for profit is also very high, especially during bottomed markets.

[TheUltraElite]

for short-term traders I think technical analysis is the main reference for determining action. we can see support and resistance on the left so we can determine the buy or sell area. although the cryptocurrency market is manipulated, I think trading psychology has a lot in common for every trader

Cant say for sure, but from what I have heard, day traders base their predictions on TA more than FA. So I guess for them it is an important point. For long term hodlers though FA becomes more important, except for bitcoin though, where you can hodl for years without having to an ounce to think about.

Majority of TA I have seen is news and market "analysts" talking about the market at the end of the day. Rarely I have seen any of them following up the predictions. So if someone follows that, they will reach the notion that TA is complete bullshit. But in reality it has some utility as well.

However TA is not essential for trading. Like I said, hodlers can easily ignore TA and go with the basic price charts to buy.

[alevlaslo]

I look at all good coins, if at least one of them has fallen to the bottom of the price, therefore the entire market will not fall lower from this time

[wiss19]

For long term hodlers though FA becomes more important, except for bitcoin though, where you can hodl for years without having to an ounce to think about.

Except bitcoin? No. Just because of fundamentals of bitcoin is stronger, we are enjoying big profits after years of holding. So, holding was discovered as a profitable way of trading bitcoin through the fundamental analysis on bitcoin's economy rules and governance. Hence, I believe we are holding bitcoins with long term plans as per FA.

In my observation, technical part is only up to 50% in our success rate. The remaining is depending on how effectively you are managing your risk and emotional things

Technical is only for short term trading hence your TA may valid for next one hour or one week still when a news arrive, you need to adjust your TA part again. So, I agree and in my opinion TA is just 10% for helping you to make profits.

[Alisha-k]

Technical analysis has it's use you don't just enter a trade because you found a single entry signal you don't trade technical analysis in isolation. There must be confluence between at least two confirmations which could be your candle stick and indicators but alwys more powerful when it's between three different confirmations. Although cryto market is basically moved by fundamental analysis but both can be combined to maintain a good profit

[Kez1817]

Through trading volume and market movement we can evaluate and identify our trading investment, this is the point of technical analysis. This is essential in trading because it can help us determine our trading status and it is very helpful for us to make profit.

[Wind_FURY]

Plus, another thing the OP, should learn is that Technical Analysis is the least important part of a whole trading system. I believe Capital management, and sizing your position well against a coin’s volatility and the size of your capital should be known first before knowing your entries and exits.

[Shasha80]

Through trading volume and market movement we can evaluate and identify our trading investment, this is the point of technical analysis. This is essential in trading because it can help us determine our trading status and it is very helpful for us to make profit.

I agree that technical analysis is indeed the most important part of trading that can make us profit. And technical analysis can be done by anyone
who has studied it. With technical analysis allows us to read price movements, this is what distinguishes traders from speculators who make
decisions based on other people's opinions. There is no doubt why technical analysis is very important to learn, so don't be lazy to do technical
analysis before trading.

[stomachgrowls]

Plus, another thing the OP, should learn is that Technical Analysis is the least important part of a whole trading system. I believe Capital management, and sizing your position well against a coin’s volatility and the size of your capital should be known first before knowing your entries and exits.

Its part of of risk management when you do handle out about capital or simply with your funds and lots of other factors which would really be needed as a whole to have some effective trading strategy to end up
on being profitable.

I dont know on why its been asked on whats the point of TA's? Of course it would really be part of your trading career.You cant just make out some positions without any basis or analysis because that would be just
simply a gamble and thats not why we are here on the first place.

You would do or try lots of strategies when you do trade not only limited with technical but also with fundamentals as well which are commonly used on here.

[wxa7115]

Sideways trends have proved that technical analysis doesn't always mean anything.

About a month ago we hit 30k, and TA is constantly predicting a breakout up or down, usually up, but instead the market crabs sideways, something only a few people predicted, and most of them didn't use technical analysis to figure it out.

TA is such a pointless endeavor in a market that is so controlled and volatile by the current BTC price action, especially if it is dependent upon the behavior of whales.

What do you think about it?

Pointeless endeavor? No its not and you would able to tell for yourself on how important this kind of analysis is because this market doesnt always react nor workout when you are just tending to make use of fundamentals.

You would really be finding for technicals to be that relevant when you do trade and make out investment into this market.It is way more better to have these kind of analysis rather than on making out positions without any basis because that surely talks about gambling.

Its just normal that analysis doesnt really work from time to time and thats not surprising because if this market had been working precisely with technicals
then for sure lots of us is already rich and making easy profits.

It seems that people forget that just as there are strategies to trade the markets when there is a strong trend, whether the trend is up or down, at the same time there are other strategies that allow you to trade the markets when they are ranging.

It is obviously something difficult to do as there is not a way to predict with 100% of certainty that a market is about to begin to range instead of showing a strong trend, but the accuracy is high enough for disciplined traders to make money on both market conditions.

[jaberwock]

Sideways trends have proved that technical analysis doesn't always mean anything.

About a month ago we hit 30k, and TA is constantly predicting a breakout up or down, usually up, but instead the market crabs sideways, something only a few people predicted, and most of them didn't use technical analysis to figure it out.

TA is such a pointless endeavor in a market that is so controlled and volatile by the current BTC price action, especially if it is dependent upon the behavior of whales.

My guess is that there is always a money to be made in the very short term looking at these TA charts, however it is always a bit unsure as well because crypto is very volatile. So what happened is that in the stock world people made a lot of money based on the stock charts, you look at revenue, debt, profit, cash flow etc etc etc and you make a good amount of profit based on that, however at the end of the day there are few crashes that happen there as well, not that frequently but it did happen.

So people who came from that world wanted to use the same thing on crypto, which does work if you are doing daily trading for example, if you want to buy now and sell an hour later that is not going to be impacted by the crypto nature, however in the long term you could always have some company declare bitcoin acceptance and bitcoin skyrockets or Elon tweets and it crashes, those are not in TA at all, if you can avoid those, TA could work very well in short term.

[Wind_FURY]

Plus, another thing the OP, should learn is that Technical Analysis is the least important part of a whole trading system. I believe Capital management, and sizing your position well against a coin’s volatility and the size of your capital should be known first before knowing your entries and exits.

Its part of of risk management when you do handle out about capital or simply with your funds and lots of other factors which would really be needed as a whole to have some effective trading strategy to end up
on being profitable.

I dont know on why its been asked on whats the point of TA's? Of course it would really be part of your trading career.You cant just make out some positions without any basis or analysis because that would be just
simply a gamble and thats not why we are here on the first place.

You would do or try lots of strategies when you do trade not only limited with technical but also with fundamentals as well which are commonly used on here.

I believe OP must have been buying and selling the current market and could have accumulated some losses. For active trading, in this current market, don’t do anything, especially if capital is low. The small profit will not be worth the stress, and trading with leverage increases the risk of losing more capital.

[Hobo66]

Technical analysis could be an exchange teach utilized to evaluate ventures and distinguish exchanging openings in cost patterns and designs seen on charts. Technical analysts accept past trading movement and cost changes of security can be profitable markers of the security's future cost developments.

[Sled]

Through trading volume and market movement we can evaluate and identify our trading investment, this is the point of technical analysis. This is essential in trading because it can help us determine our trading status and it is very helpful for us to make profit.

I agree that technical analysis is indeed the most important part of trading that can make us profit. And technical analysis can be done by anyone
who has studied it. With technical analysis allows us to read price movements, this is what distinguishes traders from speculators who make
decisions based on other people's opinions. There is no doubt why technical analysis is very important to learn, so don't be lazy to do technical
analysis before trading.

yes, it definitely needs time and effort to make TA's. It can't be accurate as we know but we can't just simply ignore the importance of this trading tool if we wanted to have passive results. Just like, having TA in our trades serves us the guide to when to sell and when to buy. And people are thinking that the market is unpredictable, TA's never works perfectly but at least we have some basis and that is the advantage of having it in our trading.

[redsun114]

it definitely needs time and effort to make TA's. It can't be accurate as we know but we can't just simply ignore the importance of this trading tool if we wanted to have passive results. Just like, having TA in our trades serves us the guide to when to sell and when to buy. And people are thinking that the market is unpredictable, TA's never works perfectly but at least we have some basis and that is the advantage of having it in our trading.

It is really not that difficult when you get to understand it, but it takes time to understand it. It is like there is a locked door and you are pushing it, shouldering it, kicking it and nothing works and one day suddenly the door is opened and you start to actually understand how things work in a second.

My suggestion to people is that if you are new to learning TA just do not give up and try to make sure that you are doing what you are doing very well for a long time without understanding a single thing. After you are certain that you are still working the right thing, suddenly it will all start to make sense. I know that it makes no sense to people, because not understanding a single thing and still working on it for days and weeks and months is not something people are very understanding of, however if you do it one day it will make things easier.

[Fredomago]

it definitely needs time and effort to make TA's. It can't be accurate as we know but we can't just simply ignore the importance of this trading tool if we wanted to have passive results. Just like, having TA in our trades serves us the guide to when to sell and when to buy. And people are thinking that the market is unpredictable, TA's never works perfectly but at least we have some basis and that is the advantage of having it in our trading.

It is really not that difficult when you get to understand it, but it takes time to understand it. It is like there is a locked door and you are pushing it, shouldering it, kicking it and nothing works and one day suddenly the door is opened and you start to actually understand how things work in a second.

My suggestion to people is that if you are new to learning TA just do not give up and try to make sure that you are doing what you are doing very well for a long time without understanding a single thing. After you are certain that you are still working the right thing, suddenly it will all start to make sense. I know that it makes no sense to people, because not understanding a single thing and still working on it for days and weeks and months is not something people are very understanding of, however if you do it one day it will make things easier.

Essence of keeps on  pushing yourself  learning things and how will you use it to favor your investment, TA is something that only those who have focus and time to make things possible are the beneficiaries of success.

Not all have  patience, and the sure thing is, most are looking for quick ways to earned, if you have that patience and you are really keen in pushing your chances to learn, the benefits of knowing the patterns are very wide, you'll be able to expect closer to how the market will go, the chance that you'll lessen your losses and start to have a winning trade.

TA serves as  basis in building your assessments, though it's not accurate but it can be use as patterns to anticipate the possible directions and for you to able to place your position in earlier  time.