Are Technical Indicators useless?

[wxa7115]

I wonder where people get that impression, I mean any book which is serious about teaching its readers how to trade is very upfront about the fact that if you become a trader you will not only lose, but you will lose several times in a row and suffer important drawdowns during your journey.

So I suppose that those that think they can get guaranteed profits have never even read a trading book on their life, as otherwise it is impossible to explain why they have those mistaken beliefs.

but then again if these TA doesn't even helps in getting profits why even bother doing TA in the first place, I think TA is good way as an indicator to know which project deserving investment and to trade for those traders.
the TA most of the time helps getting profits, but sometime as you know when the market is just working out of pure supply and demand, TA somehow becomes less relevant in this regard and instead the market will gone astray from what described in TA guides, therefore its not only TA required for making profit but also the instict of adapting the market and knowing what gonna become beforehand.
otherwise its just gonna be series of lose.

There is a huge difference between not being able to win every single trade that you make and not making profits, take a look at your favorite sport, if you have any, and think about the best player ever in that sport, do they won every single match in which they participated? Not really, even dominant athletes lose as they have a bad day or simply their opponents were better during that match.

However what makes them the best is their ability to perform at a high level on demand, and this is what a mastery of TA will give you.

[ndutndut]

I wonder is there anyone who succeed on trading with indicator/combination of indicator/special strategy.

I'm open to discuss all ideas.  

In my opinion, Technical Analysis is only useful if used as a Money Management strategy tool, so that our capital is not swallowed up by the market, so it is not used to determine market direction, especially if the market direction is daily. , monthly or even annually. Even though using this TA is not one hundred percent correct, at least you can use this TA as a guide in making decisions.

So in my opinion technical analysis focuses more on trade management because this is still a logical assumption that can be obtained from knowledge and experience. In essence, as a trader you must be able to learn about 10% technical, 20% money management, 70% psychology.

[Peanutswar]

Just increase the chance of winning but not as always assured of winnings we know how the market can easily manipulate the whales and other factors of it, not all indicators are suitable for every trader, you must need to find what kind of TA will support with your trade, if you cant find why not create your own strategic way that suitable with your trading habit. At the end still even there's a good TA you will decide on your self, if you will put your position or sell it. Consider emotions in trading.

[bitcrystal]

Not it's not useless , it works really well but not all the time which isn't bad. The issue is the patience you need to exercise for the synchronization especially when you are combining more than one. You won't expect them to be right all the times which is where most people have issues with it but if you can be patient enough and manage your capital very well with a good strategy then you will enjoy it.

[poodle63]

Not it's not useless , it works really well but not all the time which isn't bad. The issue is the patience you need to exercise for the synchronization especially when you are combining more than one. You won't expect them to be right all the times which is where most people have issues with it but if you can be patient enough and manage your capital very well with a good strategy then you will enjoy it.

the thing with many people that seemed to miss the important thing about TA is that they always expect the technical analysis to be true all the time, this is not really what TA is.
its just to give insight about current condition of the market, meanwhile the market itself could be having massive change at almost instantly whenever there's something big going on. just like
when there's bad rumours and bad news coming it could quite literally change the direction of the market itself which in this case render these TA useless.
doesn't mean it will be useless forever, there's sometime that TA really become meaningful like those in short term trading.

[Kelvinid]

Maybe Yes or No because that will depend on the trader who uses this and what kind of strategy they've been using as it syncs with what they are doing, and of course, on how they analyze the market momentum.

Well, I would say that it was very useful to my trading journey now but not before. Why? Because TA can't be made right and ready, and it is hard to analyze the situation if you are lack of knowledge. This is what I mean and it varies on the capability of the trader. Some got is right and useful, some had also seen this as useless.

[milewilda]

I wonder where people get that impression, I mean any book which is serious about teaching its readers how to trade is very upfront about the fact that if you become a trader you will not only lose, but you will lose several times in a row and suffer important drawdowns during your journey.

So I suppose that those that think they can get guaranteed profits have never even read a trading book on their life, as otherwise it is impossible to explain why they have those mistaken beliefs.

but then again if these TA doesn't even helps in getting profits why even bother doing TA in the first place, I think TA is good way as an indicator to know which project deserving investment and to trade for those traders.
the TA most of the time helps getting profits, but sometime as you know when the market is just working out of pure supply and demand, TA somehow becomes less relevant in this regard and instead the market will gone astray from what described in TA guides, therefore its not only TA required for making profit but also the instict of adapting the market and knowing what gonna become beforehand.
otherwise its just gonna be series of lose.

There is a huge difference between not being able to win every single trade that you make and not making profits, take a look at your favorite sport, if you have any, and think about the best player ever in that sport, do they won every single match in which they participated? Not really, even dominant athletes lose as they have a bad day or simply their opponents were better during that match.

However what makes them the best is their ability to perform at a high level on demand, and this is what a mastery of TA will give you.

Losing trades is inevitable and this is something that people should mainly be reminding themselves so that they wont really be expecting that much about winning constantly because it cant really be just that possible on having this way. Indicators are useless? They wont really be that making that perfect trade from time to time because market conditions wont really be that the same and this is why it would really be just that wise
that you should really be that versatile on whatever things that you would encounter because trading isnt really just talking about making profits because before you would really be able to experience such things then you would really be needing to pass up on lots of trials and errors. Using up indicator would really be that relevant because you cant really just be able to handle yourself on this market with some naked trading.

You would really be that finding to be that relevant on the time that you would really be stepping your foot into this field.  You would be finding it to be so useful
because with these tools you could really be able to have at least the idea on where prices could possibly go on but of course dont make yourself that so sure
because we know that we do make pure speculations on using up these indicators.

[bittick]

TA is good when you are trading when you are investing not so much, why? because TA usually used for short term where in short term people can't really analysis based on trend but instead on TA
due to the lack of data so they just read from the chart instead. even though it may not be accurate.

[Usasauki2004]

Nothing is useless as far as trading is concern. If truly they are useless then they can't be there as indicators. The best thing is to try all the possible indicators available (that's if you can) then work with the one that gives more insight and suit you. Don't go for complicated indicators and always go for the one simple to use. The aim at the end is to be profitable.
Mind you, using only technical indicators is not always advisable, you can mix it with other confluences like price action and trend line it give you more clarification.

[agustina2]

Indicators are very helpful. Maybe you just didn't hit the right strategy while following those.

Your strategy will depend on those indicators. You don't just want to predict without a basis right?

How long have you trading? If you are just having a bad day, try tou bounce back the other day.

[Xampeuu]

Indicators are very helpful. Maybe you just didn't hit the right strategy while following those.

Your strategy will depend on those indicators. You don't just want to predict without a basis right?

How long have you trading? If you are just having a bad day, try tou bounce back the other day.

Indeed, indicators can help our trading, but we must be able to know the strengths and weaknesses of an indicator, so that we can use it well. I prefer to use EMA which seems to be commonly used and of course can flow according to the current trend. However, we do have to be disciplined, sometimes the EMA breaks out and we have to be disciplined to dare to cut losses, this is an example of what should be done in recognizing the characteristics of the indicator