Does Technical Analysis Really Work?

[Sanitough]

No one knows how the crypto market will move so that means that technical analysis will only work about 50% of the time and I think that's the most generous percentage of it's effectivity, some have said that it's not going to work at some point and I do agree that it can happen because sometimes things are just so volatile that it's difficult to follow by the book.

Technical analysis alone will not create full effectivity, that’s why fundamental and sentiment analysis should also be highly considered. Now, since the market is highly volatile that makes it very unpredictable to predict, sentiment analysis will come in. That will help you not to be emotionally attached to your trades, knowing trading at some point certainly fail that may result into losing of funds. But if you really aim for a highly positive trading outcome, never just focus on its technicalities and fundamentals, know the worth of your sentiments so that you will not regret losing your trades because you are too much focused on your greed on profits.

[Monarch B]

In my opinion, technical analysis works as long as the manipulator allows it to. The manipulator knows very well how to manipulate charts and crowd sentiment. That is why you cannot blindly trust technical analysis. You should treat it as a kind of auxiliary tool, which shows with a certain probability the further price movement (but you should always lay a straw).

Yeah I understand. Thank you.

[Monarch B]

No one knows how the crypto market will move so that means that technical analysis will only work about 50% of the time and I think that's the most generous percentage of it's effectivity, some have said that it's not going to work at some point and I do agree that it can happen because sometimes things are just so volatile that it's difficult to follow by the book.

Technical analysis alone will not create full effectivity, that’s why fundamental and sentiment analysis should also be highly considered. Now, since the market is highly volatile that makes it very unpredictable to predict, sentiment analysis will come in. That will help you not to be emotionally attached to your trades, knowing trading at some point certainly fail that may result into losing of funds. But if you really aim for a highly positive trading outcome, never just focus on its technicalities and fundamentals, know the worth of your sentiments so that you will not regret losing your trades because you are too much focused on your greed on profits.

It is true that controlling greed in trading is very difficult. It reduces the amount of profit and increases the amount of loss.

[Monarch B]

From what I have read from your post, it's about the psychological mindset that is set on the "market psychology" not with your personal or self mind when it comes to disciplining and managing your assets/resources. Mindset is one of the things that you would consider if you ever are interested in being successful in trading.

So you need to understand both stances.

• Market Psychology
• Self Psychology

I think there are more technical terms but I can't think of it right now. You really need just to understand how the market would lean or go to and with the self psychology, it would be the controlling of your emotions.

It plays with the technical analysis. It has roles that you need to consider as well.

Market Psychology: What is the way to understand it? Or market psychology can be understood through technical analysis.

In fact I have been lagging behind for the past six months. Trying to understand know it is not possible to learn or master it in such a short time. But of course I need a better way.

The answer is no. Let's put it this way: even experienced and expert traders are still having a hard time doing TA or technical analysis because the market is volatile, so they need a series of analyses and also adding more indicators to the market analysis, and they need to take into consideration the recent movements of a certain currency. In short, doing or coming up with a technical analysis will not be easy either, so you need very consistent learning and also a lot of patience because that's where you will be challenged and may give up through it. But if you are a constant learner, then I think you will come up with a TA that has the potential to earn, but remember that every technical analysis has its margin of error, so your TA should be able to cover that margin of mistakes. Well, anyway, there's no perfect trade; it's up to the trader to decide how good he is or how good his decision-making is.

Perfect answer. Thanks dear for your Explanation ,

[martinex]

Reasonable. They are also looking for profit in market..

Hockey is also there but it doesn't always come all the time. Yes. In general, technical analysis is also necessary and the most important thing is the timing of market entry and that starts from graphical data and repeated events that we can see, both the pattern of changes in one week, 4 days and 4 hours and that is controlling the price movements and The main thing is to monitor the BTC price first. Apart from that, USDT savings are also required, at least always in our trading account.

[Bushdark]

No one knows how the crypto market will move so that means that technical analysis will only work about 50% of the time and I think that's the most generous percentage of it's effectivity, some have said that it's not going to work at some point and I do agree that it can happen because sometimes things are just so volatile that it's difficult to follow by the book.

Technical analysis alone will not create full effectivity, that’s why fundamental and sentiment analysis should also be highly considered. Now, since the market is highly volatile that makes it very unpredictable to predict, sentiment analysis will come in. That will help you not to be emotionally attached to your trades, knowing trading at some point certainly fail that may result into losing of funds. But if you really aim for a highly positive trading outcome, never just focus on its technicalities and fundamentals, know the worth of your sentiments so that you will not regret losing your trades because you are too much focused on your greed on profits.

It is true that controlling greed in trading is very difficult. It reduces the amount of profit and increases the amount of loss.

Greed is one of the ways we can trade in the market and keep complaining that we are not making any profits from the market.
If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.

[_act_]

Greed is one of the ways we can trade in the market and keep complaining that we are not making any profits from the market.
If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.

Technical analysis is important for traders to analyze the market but some people will trade and be losing in trading no matter the technical analysis and strategies they are using. Trading is not for everybody. If someone is losing in trading and trying ways to make money but seeing it not working and losing at long time, the person should quit trading is what that is best for the person. Trading is not easy as we think and the emotion we talk about is not easy to control at all. Thinking of trading can even be related to greed because traders prefer to look for money in short period of time like within some minutes or hours. Holding is better and holding means someone do not have greed like traders.

[cute nmp]

Sure technical analysis works in all types of markets both cryptos,Fx and the stock market.It is the key tool when it comes to analysing any market situations it also helps in gauging the market direction. Technical is most a times more accurate than indicators.

[DaNNy001]

Greed is one of the ways we can trade in the market and keep complaining that we are not making any profits from the market.
If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.

Technical analysis is important for traders to analyze the market but some people will trade and be losing in trading no matter the technical analysis and strategies they are using. Trading is not for everybody. If someone is losing in trading and trying ways to make money but seeing it not working and losing at long time, the person should quit trading is what that is best for the person. Trading is not easy as we think and the emotion we talk about is not easy to control at all. Thinking of trading can even be related to greed because traders prefer to look for money in short period of time like within some minutes or hours. Holding is better and holding means someone do not have greed like traders.

Greed is somehow related to the trader psychological balance so learning how to control your greed is one important factor that should be consider because I can say for sure that even the technical analytic traders still fall short of this greed problem because they fail to evaluate their actions when it comes to knowing when to stop trading. Trading is something that are seen by many as gambling including me myself but I sure do know that some persons have claims that you can actually learn thoroughly through different technically knowledge to actually have an advantage over this but I doubt that many people posses the knowledge.

[Distinctin]

Greed is one of the ways we can trade in the market and keep complaining that we are not making any profits from the market.
If we can at least take away greed from our trading journey, we might finally become a good trader if we know what we are doing and how to know go about it staying away from the spirit of greed that could make us to lose in the market.
We can always use technical analysis to analyze the market and try to make money for ourselves if we know what we are doing.

Technical analysis is important for traders to analyze the market but some people will trade and be losing in trading no matter the technical analysis and strategies they are using. Trading is not for everybody. If someone is losing in trading and trying ways to make money but seeing it not working and losing at long time, the person should quit trading is what that is best for the person. Trading is not easy as we think and the emotion we talk about is not easy to control at all. Thinking of trading can even be related to greed because traders prefer to look for money in short period of time like within some minutes or hours. Holding is better and holding means someone do not have greed like traders.

While the trading market remains unpredictable, it’s crucial to see traders know to use technical analysis. If it works for other successful traders, then most likely it will also work to the current traders these days. However, technical analysis cannot be completely reliable for a trader to succeed. There are a lot of factors to consider in order to trade successfully. Greed is one factor that should be avoided or controlled because if a trader uses greed in most of his trades, expect that he won’t maximize his profits when trading.

Having patience and positive attitudes towards trading contribute also to the success of trading. If one is patient enough not to trade when the market is not favorable to trade, then he might control or minimize his losses if ever.

[Franctoshi]

Technical Analysis works quite fine, but trading is not only about the technical side of it, basically trading base on what you see on the chart, else everyone will be milking the market, there are a couple other things that help you succeed in this market, such as paying attention to the news, manage risks, control greed, have patient with trading set ups because trading is a waiting game because the market is reactive one base on what you see and not predictive. Technical Analysis only helps you to see what is likely to happen in the future and you should react when the scenario has started to play or have given you a clear signal.

[alastantiger]

Technical analysis is good but as a trader who is not sure about it, it will do you some good if you leave the complicated chart patterns behind and stick with the basics such as understanding candlesticks, support resistance, volume, and momentum.

I am of the opinion that every trader especially beginner trader should use basic technical analysis principles together with fundamental analysis or other strategies as they have shown overtime to be able to offer insights into market sentiment, but it is not advisable to rely mainly on technical indicators. My conclusion is yes, technical analysis works but they are ineffective as a standalone trading strategy.

[Monarch B]

Technical analysis is good but as a trader who is not sure about it, it will do you some good if you leave the complicated chart patterns behind and stick with the basics such as understanding candlesticks, support resistance, volume, and momentum.

I am of the opinion that every trader especially beginner trader should use basic technical analysis principles together with fundamental analysis or other strategies as they have shown overtime to be able to offer insights into market sentiment, but it is not advisable to rely mainly on technical indicators. My conclusion is yes, technical analysis works but they are ineffective as a standalone trading strategy.

I Understand what you say. I need to focus more details in the trade. Thanks for your attention,

[ndutndut]

Technical Analysis works quite fine, but trading is not only about the technical side of it, basically trading base on what you see on the chart, else everyone will be milking the market, there are a couple other things that help you succeed in this market, such as paying attention to the news, manage risks, control greed, have patient with trading set ups because trading is a waiting game because the market is reactive one base on what you see and not predictive. Technical Analysis only helps you to see what is likely to happen in the future and you should react when the scenario has started to play or have given you a clear signal.

So true. As a crypto trader, the use of technical analysis is very helpful in predicting prices in the market. Many traders use crypto patterns or cycles to analyze charts to make price predictions so it is easy to read market structure and know which way the market is moving. This should also be accompanied by always following the news so as to provide a higher chance for your trade to turn green. Once you know the structure, all you need to do is minimize the risk. But seriously, technical analysis is just a tool. This is not a magic ball that can predict the future, what drives prices is a combination of technical, fundamental and macroeconomic analysis.

[Sophokles]

All the analysis gives us valuable insight about the market condition so that we can develop strategies to get a positive outcome. It's not easy to do technical analysis properly but if you can do that it will increase your success rate. With technical analysis and news event we can make a good profit in any market condition.

[Natsuu]

Trading isn't just about charts and numbers, it's a mental game too. Sure technical analysis matters but your mindset is equally crucial. Handling wins and losses, staying disciplined and understanding market vibes are key. It's more than just knowing when to buy or sell because it's about keeping your cool when things get wild. Getting expert advice on the psychology of trading could be a game-changer, helping you ride the ups and downs with more confidence and savvy decision-making

[boty]

Trading isn't just about charts and numbers, it's a mental game too. Sure technical analysis matters but your mindset is equally crucial. Handling wins and losses, staying disciplined and understanding market vibes are key. It's more than just knowing when to buy or sell because it's about keeping your cool when things get wild. Getting expert advice on the psychology of trading could be a game-changer, helping you ride the ups and downs with more confidence and savvy decision-making

For some people who are able to understand market conditions well, they will be able to easily use trading strategies that they will use to be able to make a profit from these trades, as you said, maybe there are some traders who can only know when to buy and sell, but they can't handle the wins and failures they get from trading until they experience losses and they can't accept that.

If we have people who can advise us in trading, of course we will be able to make the right decisions in the trading we do and we will be able to control ourselves in trading and will not do it greedily which makes us lose on the trade.

[Monarch B]

All the analysis gives us valuable insight about the market condition so that we can develop strategies to get a positive outcome. It's not easy to do technical analysis properly but if you can do that it will increase your success rate. With technical analysis and news event we can make a good profit in any market condition.

I am currently learning Technical Analysis but I don't pay much attention to news, in fact after listening to you I will focus on this from now on. Focusing on news means regularly monitoring their Twitter profiles. If that's okay then I've mastered another new trick. Thanks 👍

[Monarch B]

Trading isn't just about charts and numbers, it's a mental game too. Sure technical analysis matters but your mindset is equally crucial. Handling wins and losses, staying disciplined and understanding market vibes are key. It's more than just knowing when to buy or sell because it's about keeping your cool when things get wild. Getting expert advice on the psychology of trading could be a game-changer, helping you ride the ups and downs with more confidence and savvy decision-making

Of course psychology analysis plays a big role. An understanding of what is required to gain knowledge on this subject is essential. Then things will be easy for me.

[bettercrypto]

Not all technical analysis is helpful to us because most of the analyses we do do not favor what we see and observe in terms of price value. Maybe at another point, it can help when our
analysis matches the reading on the chart or graph.

In other words, he is helpful, so I think maybe around 40%. I just thought about it. Because the market is unpredictable, that's why I can say this.