Does Technical Analysis Really Work?

[Monarch B]

I am seeking the opinion of the experienced and voicing my opinion.

I think if a training is 100% for learning, 1% of it is technical analysis and the rest 99% is psychological games..Because I have been learning and trading technical analysis for a long time but mostly I lose. I am still learning after that. I've noticed lately that big investors can handle trading as they please. Because they have a lot of funds, if they take a small amount, they take big trades and destroy it. In which case technical analysis is not enough. And I think psychological analysis plays a big role along with technical analysis.


But I don't have any psychological knowledge about trading. Looking for expert opinion on psychological mind set.

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[cabron]

In a bull market, I think the TA may not work at some point, it follows certain behavior as the market reacts to the sentiments but TA does work in most cases when the market goes sideways or even in the bear market.

The only psychological in trading is controlling the trader's greed which is why most advice says don't be too emotional about it. Sometimes when a trader can't wait for the right price and just keeps buying and not knowing why, he'll end up losing.

[Oshosondy]

If you want a market that investors are not manipulating, go for high marketcap coins like bitcoin. You are trading low marketcap coin is the reason you are seeing manipulation.

Technical analysis is still very important in trading.

Trading is very risky generally, even including trading bitcoin.

There is nothing like psychological analysis. The third type of analysis is sentimental.

Trade with amount of money that you can afford to lose.

Look for more strategies to win. You can try averaging.

[retreat]

That means you are more suited to playing fundamental analysis. Because many traders, including me, can say that technical analysis really works and can provide profits if we can understand how the market works. Indeed, at one time, when news came out/political conditions suddenly got worse, no analysis could work, no matter how good you were at fundamental or technical analysis. So it comes back to market conditions.

[Monarch B]

In a bull market, I think the TA may not work at some point, it follows certain behavior as the market reacts to the sentiments but TA does work in most cases when the market goes sideways or even in the bear market.

The only psychological in trading is controlling the trader's greed which is why most advice says don't be too emotional about it. Sometimes when a trader can't wait for the right price and just keeps buying and not knowing why, he'll end up losing.

TA  means: Technical Analysis.

Yes I will keep your words in mind that greed must always be controlled I am like this.

Think I've taken a trad and that trade is profitable but at that point I'll be craving more to make a little more profit. Just after a while it will be seen that my profit amount is decreasing little by little.  

Again when there is no trade maybe or going towards loss my stop loss is close to what is given then fear works in the mind which comes out little by little. Maybe I got out and then the market started to go up again. That kind of risk works in my mind.  

Maybe that's why I haven't been able to set my mind till now. Thanks for your feedback.

[Monarch B]

That means you are more suited to playing fundamental analysis. Because many traders, including me, can say that technical analysis really works and can provide profits if we can understand how the market works. Indeed, at one time, when news came out/political conditions suddenly got worse, no analysis could work, no matter how good you were at fundamental or technical analysis. So it comes back to market conditions.

I think the market still depends a lot on the political situation. Can you give me some tips so that I can succeed in this matter.

And I think fundamental analysis is not very effective in short term trade. If you say something wrong, you will look at it with a look of forgiveness. Thanks for your feedback.

[hugeblack]

Technical analysis of Bitcoin in the medium and long term gives good results, and you must update your plan every few weeks so that it is not rigid in a goal you set months ago and changes occurred in the market after that, but your use of technical analysis in the long term will enhance your profits.
In the short term, technical analysis may not give excellent results, and it is better to consider it as an auxiliary tool alongside other tools.
As for altcoins, technical analysis does not work well with them.

[Kelward]

In a bull market, I think the TA may not work at some point, it follows certain behavior as the market reacts to the sentiments but TA does work in most cases when the market goes sideways or even in the bear market.

The only psychological in trading is controlling the trader's greed which is why most advice says don't be too emotional about it. Sometimes when a trader can't wait for the right price and just keeps buying and not knowing why, he'll end up losing.

If there's anything like psychological analysis in crypto trading, it'll have to do with the trader being emotional and it might lead him to not focusing on a perticular parten, it can also lead to not knowing the right time to buy or being greedy by not knowing the right time to call it a day. Technical and fundamental analysis are however very important for every trader to understand, but the way that a trader chooses to use them is what matters, trading is hard and that is a fact, so it's good to always trade with the amount that you can afford to loose.

[MusaMohamed]

In which case technical analysis is not enough. And I think psychological analysis plays a big role along with technical analysis.

But I don't have any psychological knowledge about trading. Looking for expert opinion on psychological mind set.

There are fundamental and technical analyses but with psychology, you will have to understand the psychology of market cycles. You don't have to make a psychological analysis because if you do it, you will not be different with people who use fundamental and technical analyses.

By taking psychology of market cycles into your view on the market, you look at long term and by that you accept lags between what you expect and what the market will actually move.

Psychology of market cycles

[Kelvinid]

I think you are talking about strategy, not psychological analysis. Rich people use their money to manipulate the market - small-cap coins. That is a simple plan which makes them succeed but as @Oshosondy, this is impossible for Bitcoin.

If you are thinking OP that money is important in trading, then forget about TA or any form of marker analysis as you are not just doing trading but manipulation. But for us who are actually enjoying trading and feel that we are trading fairly, then must say that TA is very important. Of course, I don't expect everyone to see how important it is and I don't think it was effective for a trader who does not even believe its help.

[Julien_Olynpic]

It is an eternal question in the market - does technical analysis work? And as long as traders exist, they will ask this question. It is impossible to answer this unequivocally. But I believe that technical analysis works. But it only works if this is understood correctly. For example, if we have a pattern with decreasing volatility, say a converging triangle, then it is natural to expect that the price will eventually move in the same direction for some time after the consolidation ends. Technical analysis is based on simple statistical observations. He is very logical. But, naturally, it does not provide absolute confidence in the forecast. For if someone could make error-free forecasts, they would probably earn all the money in the world. In practice, we all often make mistakes.

[Monarch B]

I think you are talking about strategy, not psychological analysis. Rich people use their money to manipulate the market - small-cap coins. That is a simple plan which makes them succeed but as @Oshosondy, this is impossible for Bitcoin.

If you are thinking OP that money is important in trading, then forget about TA or any form of marker analysis as you are not just doing trading but manipulation. But for us who are actually enjoying trading and feel that we are trading fairly, then must say that TA is very important. Of course, I don't expect everyone to see how important it is and I don't think it was effective for a trader who does not even believe its help.

Thanks for your feedback. I'm now learning in TA.

[snowpega]

Technical analysis and fundamental analysis do not always work 100% correctly there is no method or guarantee which can help you to take 100% correct or profitable trade. The market sometimes relies on sentiments that are sometimes highly bullish or highly bearish. Besides all that, there are a lot of factors on which market prices fluctuate the value of any specific/particular Project or Token.

The Best thing is to always stay up to date in the market and use the stop loss function to avoid or bear any kind of loss. I am not saying we should not do any technical analysis or fundamental analysis before taking any trade actually these also help a lot i mean traders can have an idea about the coming movement of the market by doing technical analysis or fundamental analysis but the thing is that trader should have Good experience of doing technical analysis or fundamental analysis which can help him/her to make a good portfolio by taking trades. DYOR!

[Mahanton]

I am seeking the opinion of the experienced and voicing my opinion.

I think if a training is 100% for learning, 1% of it is technical analysis and the rest 99% is psychological games..Because I have been learning and trading technical analysis for a long time but mostly I lose. I am still learning after that. I've noticed lately that big investors can handle trading as they please. Because they have a lot of funds, if they take a small amount, they take big trades and destroy it. In which case technical analysis is not enough. And I think psychological analysis plays a big role along with technical analysis.


But I don't have any psychological knowledge about trading. Looking for expert opinion on psychological mind set.

Not 100% but it is something that would really be that beneficial or commonly being used by most traders. How you would really be able to know or be able to read up those candlesticks or charts without
having those indicators? You cant really just that assume that it would be going up or down without any basis. You would really be finding its relevance on the time that you would be setting up your foot into this market
on which you would really be finding up these things to be that something important. You would really be needing up to learn up these things and you cant really just that make yourself having that
fundamentals anytime or time to time on which you could based up with your position.

You would be needing to combine TA+FA as much as possible if its available but if its not then stick with TA's but of course and just been said
earlier that it wont really be giving out 100% precision.

[boyptc]

It works but not at all times.

Just like what everyone is saying, it may work for many times but there will be times that you can't just see that it works. And as you've said about psychological analysis.

Honestly, any type of analysis that works for you as you trade, you just have to keep on working with it for you to become a profitable trader.

[Patrol69]

In the case of trading, technical analysis will definitely be needed, if a trader is skilled enough in technical analysis, he will get the opportunity to trade with a good understanding of the market. Most of us traders who are not give much importance to technical analysis rather we try to trade as per our wish but that is where we go wrong. There is a right rule and right time for everything. If we trade only with such an idea without understanding the market, then we are more likely to lose. In order not to lose our money we need to do technical analysis first so that we can understand the market and how the market movement can be so that we can trade. If we trade on the idea that the next movement of the market might be like this, then there is no chance of much loss.

[Uhwuchukwu53]

Technical analysis stand the best I have ever seen among all the strategic means of trading that work better though to some may not be, a good analysis can keep you moving in the trade with less loss because one can't eliminate completely issue if why in as much trading is concerned little fraction of loss must be involved. It gives more clarity on price movement mostly when your good in the chart, it works but what I can say conclusively is that it can be relative in the sense that it may not favour all the time also  some person may prefer other method of trading rather than it.

[Monarch B]

Technical analysis stand the best I have ever seen among all the strategic means of trading that work better though to some may not be, a good analysis can keep you moving in the trade with less loss because one can't eliminate completely issue if why in as much trading is concerned little fraction of loss must be involved. It gives more clarity on price movement mostly when your good in the chart, it works but what I can say conclusively is that it can be relative in the sense that it may not favour all the time also  some person may prefer other method of trading rather than it.

I understand it really depends on the individual. How my skills are depends on me. Skills must be acquired over time.

[Natalim]

I understand it really depends on the individual. How my skills are depends on me. Skills must be acquired over time.

Skills acquired along the way if we continue to trade and learn. Indeed, losses are not the thing we want to happen but it is been said that it is a helping situation for us to learn how trading works and it also helps us to find ways/strategies that will work in a certain condition. We lose money but we gain knowledge. But this never says that it remains like this as we find ways how to improve our trading skills and using tools such as Technical Analysis brings huge changes to the results. If many traders have seen it was helpful to them, that was impossible it never be helpful to you as well. Maybe it has never been applied right or your analysis needs to improve.

[goaldigger]

TA works but not all the time especially in cryptomarket since most of the time there’s a hype and FUD in this market which can invalidate your analysis. If you are going to analyze make sure to always set-up your cut loss price to avoid any losses and of course know your target price to secure profit, by this you are making yourself a more profitable trader and a responsible one.