what is point of Tehnical analysis?

[Xinarae*]

Technical analysis refers to the study of how the price of a particular foreign currency pair or the market price chart of the market changes, why it changes and what its effects are in the future technical analysis studies changes in market value and builds a framework for later use in trading. Technical analysts believe that the price movement of the price chart or the price action reflects the current market price change.

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[mindrust]

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?

It really means nothing. TA always follows FA. Fundamentals is what really matters. As long as they are good, TA will also look good. TA is like fortune telling. It usually ends up wrong but sometimes you guess it right and it makes you a believer which is very wrong.

I am not sure how do I do a FA on crypto though and that's probably the reason why TA is more famous when you analyze crypto because you can't really do a FA on crypto like you do on stocks.

[famososMuertos]

Hi,
There is actually a point, always, for those who do such analysis and for those who consume it, even anyone who appreciates their assets or bitcoin if they are lazy to do it themselves, check out the TAs of third parties. Someone ever made them, will make them and does, unless they always play Hi/low blindly on prices.

The use of TA has taken on perfectionist overtones in those who do it frequently and this is fine, because that makes the successes or not of those who do it have an acceptance from the users who use them.

But in general, any technical analysis feeds on information (from any niche) that is available to everyone, which you then interpret, period. That is to say, at some point in our limitations we do a market analysis, technical or not, it is already a subjective matter, but there the point, you can not go blind in any investment, in any.

[ReiMomo]

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?

When the trend is on sideways as you said, do not place your orders for either buy or sell. Often sideways trend, tend to fall down unless and until there is a good news on the concerned coin and the trend goes up. Technical analysis is always mandatory. Just choose coins which has up and down trends. Those are the currencies that will bring profits. 

[perfect999]

The market will remain unpredictable no matter what is happening around. Having TA gives you some insight into what will possibly going to happen next but we can't fully rely on this as this will not give us 100 assurance of where the market trend goes by.

I agree but having the knowledge of TA analysis makes you confident on your trading activities especially on where to enter and take profit this is really very important, TA kills is really great help to predict the possible breakout of a coin without the knowledge and help of trading indicators it will be very difficult to analyze market movement in the short term. 

That's the idea, TA should be something exactly like what you are talking about but the weird part about it is that people do not use it that way, and crypto doesn't move like that. You can be damn certain about what is going on and you can invest accordingly, right before a break out as the chart says, but then some tweet by Elon, or some Chinese news, or whatever and suddenly it crashes.

The biggest example of this happened in November of 2018, in that month for a whole week TA looked like the price would skyrocket, it was around 6.5k and people were estimating at minimum 13k and probably then some, probably capped at 18k because the resistance was way too huge to break there, so there was a chance of 13 to 18, what happened? The price crashed to 3.5k because Craig Wright sold thousands of bitcoins all at once. This is why TA is not always safe in crypto world, something unexpected to happen is something expected here.

[TheUltraElite]

But in general, any technical analysis feeds on information (from any niche) that is available to everyone, which you then interpret, period. That is to say, at some point in our limitations we do a market analysis, technical or not, it is already a subjective matter, but there the point, you can not go blind in any investment, in any.

Well I guess that is the reason why Wikipedia calls TA as a pseudo-science.

For long term hodlers only the buying points needs some Fundamental analysis and some price charting, selling point does not need prior analysis, because they will be selling a much higher multipliers.

I can see TA being more applicable everywhere in case of day traders or short term trades. Still indicators can give a 50-50 prediction as to what mathematically the market should do at that point, keeping aside all exceptional events.

My advice to newbie traders is always to read indicators with a bit of salt, but identify Resistance and Support levels properly. So they know where to buy.

[Jamesa001]

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 consultant référencement Paris volatile by the current BTC price action, especially if it is dependent upon the behavior of whales.

What do you think about it?

It is better to amend the topic to “What are the things that make beginners lose a lot”

[South Park]

That's the idea, TA should be something exactly like what you are talking about but the weird part about it is that people do not use it that way, and crypto doesn't move like that. You can be damn certain about what is going on and you can invest accordingly, right before a break out as the chart says, but then some tweet by Elon, or some Chinese news, or whatever and suddenly it crashes.

The biggest example of this happened in November of 2018, in that month for a whole week TA looked like the price would skyrocket, it was around 6.5k and people were estimating at minimum 13k and probably then some, probably capped at 18k because the resistance was way too huge to break there, so there was a chance of 13 to 18, what happened? The price crashed to 3.5k because Craig Wright sold thousands of bitcoins all at once. This is why TA is not always safe in crypto world, something unexpected to happen is something expected here.

No TA can predict events like that, in fact many books that are honest about the limitations of TA speak of this, if there is an actor that has a lot of money that it can on its own move the market then you are at their mercy, and we know that in the market of cryptocurrencies we have huge whales that can move the market as they want, and as such this means that we need to always be on our guards and have a stop loss ready in the case a flash crash happens.

[LUCKMCFLY]

That's the idea, TA should be something exactly like what you are talking about but the weird part about it is that people do not use it that way, and crypto doesn't move like that. You can be damn certain about what is going on and you can invest accordingly, right before a break out as the chart says, but then some tweet by Elon, or some Chinese news, or whatever and suddenly it crashes.

The biggest example of this happened in November of 2018, in that month for a whole week TA looked like the price would skyrocket, it was around 6.5k and people were estimating at minimum 13k and probably then some, probably capped at 18k because the resistance was way too huge to break there, so there was a chance of 13 to 18, what happened? The price crashed to 3.5k because Craig Wright sold thousands of bitcoins all at once. This is why TA is not always safe in crypto world, something unexpected to happen is something expected here.

No TA can predict events like that, in fact many books that are honest about the limitations of TA speak of this, if there is an actor that has a lot of money that it can on its own move the market then you are at their mercy, and we know that in the market of cryptocurrencies we have huge whales that can move the market as they want, and as such this means that we need to always be on our guards and have a stop loss ready in the case a flash crash happens.

I´m right on this point, no technical analysis is capable of predicting events that are fundamental, they are only invalidated when they occur, the idea of having a good Technical Analysis is that it approximates what is previously thought, that is, to make an analysis It is essential even in the short term so that you have time to react to any sudden change in the market or if it goes against the movement.

All good technical analysis should give us an idea of how the movement can come out if the ideal conditions for it are met, otherwise it can be invalidated, in fact I have been learning a lot from technical analysis reading many articles by alts, and there are some analysts who agree in their analysis, which can give a higher index of confidence.

[john_nautica]

Of course not, maybe some of those users might predict its happening but technical analysis is like the summary of what's going on in the market by reading it right you will know what will happen or the possible things that can happen to the market so actually it's the opposite of what you're saying, maybe at some point it failed due to the market volatility but most of the time it works.

[TheGreatPython]

The biggest example of this happened in November of 2018, in that month for a whole week TA looked like the price would skyrocket, it was around 6.5k and people were estimating at minimum 13k and probably then some, probably capped at 18k because the resistance was way too huge to break there, so there was a chance of 13 to 18, what happened? The price crashed to 3.5k because Craig Wright sold thousands of bitcoins all at once. This is why TA is not always safe in crypto world, something unexpected to happen is something expected here.

Well explained, really. That's why we must have the ability to perform a fundamental analysis along with technical because although technical analysis gives you a rough idea in which way the market shall move, given nothing unexpected happens, the fundamental analysis gives you the confidence in your investment and the power to avoid panicking when the market crashes with uncertain events.

technical analysis is very useful in fact it is not suitable if the technical analysis fails simply because it does not match the movement of the coin. So, the failure is purely due to market conditions that affect the coin price not our analytical technique

No matter how well you analyzed something, as long as there are manipulators and the market is decentralized, there is literally nothing much you can do to avoid unexpected outcomes.

[poodle63]

If market goes to sideways then it is very difficult to predict what is the next move of market. It is a strong indication of big dump or a big pump.
Then we keep eye on fundamental analysis, because it helps to give direction to move the market. We can predict short term trading and long term holding coins by technical charts.

We should also consider the other factors like the market suddenly become a place for speculative by a group of whales or even an effect caused by some hype in the market but fundamental analysis is also one of the most important factor, I always have opinionn that if people really want to invest into something they should truly see the fundamental of a coin and not just chart movement. With only chart movement or technical anaylsis things could become really ugly once the market direction turning all of sudden without proper reason and that kind of thing happen quite frequently in the market.

[Karish2return]

Technical analysis could be a exchanging teach utilized to assess speculations and recognize exchanging openings in cost patterns and designs seen on charts. Technical analysts accept past exchanging action and cost changes of a security can be important pointers of the security's future cost developments.

[YOSHIE]

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

Analysis is also important, in the world of trading, especially the crypto market, the analysis is divided into several parts or more clearly with the understanding and techniques used, of course there are differences, if in crypto trading it is called mathematical analysis and movement of crypto activities in the market, such as sorting, parsing and so on, the criterion is to be sure of the current and future movement of crypto.

If you don't understand about analysis, it's relatively new and useless, but some analysis people have a good purpose in knowing, to do and to achieve profits in the future, overall in the crypto market analysis is very important.

[stomachgrowls]

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

Analysis is also important, in the world of trading, especially the crypto market, the analysis is divided into several parts or more clearly with the understanding and techniques used, of course there are differences, if in crypto trading it is called mathematical analysis and movement of crypto activities in the market, such as sorting, parsing and so on, the criterion is to be sure of the current and future movement of crypto.

If you don't understand about analysis, it's relatively new and useless, but some analysis people have a good purpose in knowing, to do and to achieve profits in the future, overall in the crypto market analysis is very important.

There are lots of key areas on which analysis do really cover out and we have seen different types and different approach into it and its true that technicals arent really everything in crypto space.

We have seen that technicals doesnt work from time to time and this is where other analysis do sets in but there are really times that you cant do anything since the market isnt showing anything
when it comes to signals or possible price movement or simply when its moving sideways.

I dont know on why people do doubt about it, if it turns out to be useful on most people then why wont really be considering on using it instead?

[lixer]

I´m right on this point, no technical analysis is capable of predicting events that are fundamental, they are only invalidated when they occur, the idea of having a good Technical Analysis is that it approximates what is previously thought, that is, to make an analysis It is essential even in the short term so that you have time to react to any sudden change in the market or if it goes against the movement.

All good technical analysis should give us an idea of how the movement can come out if the ideal conditions for it are met, otherwise it can be invalidated, in fact I have been learning a lot from technical analysis reading many articles by alts, and there are some analysts who agree in their analysis, which can give a higher index of confidence.

Unfortunately, that is only correct when the ideal conditions are met and how many times we have seen not so ideal conditions in crypto world? When have you seen something go up nearly 16x in a year or so (which bitcoin did from 4k on march of 2020 to 64k in may of 2021) so it is just something that is totally underestimated value of how unexpected bitcoin can be.

I personally believe that doing very very short-term trading with TA, such as day trading and buy/sell within an hour of each other could work, if you buy and at most sell in less than an hour then you will be able to use that TA very well and the chance of you not facing anything unexpected grows rapidly. However, if we are talking about a bit longer, even if 24 hours the chance of facing something unexpected grows, in a week? It becomes more possible than not possible, in a month? It becomes inevitable.

[Kimonoe]

The technical analysis approach used for each person may be different. many of them combine chartist techniques with available indicators, they always combine one with another until they feel it suits them, and understand how to use an indicator. Therefore, many traders seem to be looking for their identity to face the market in order to make a profit