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Your opinion on technical analysis

Discussion in 'Other Off Topic Forum' started by cohiba_man, Jan 9, 2004.

  1. cohiba_man

    cohiba_man Formula Junior

    Jan 23, 2003
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    Canada
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    John
    #1 cohiba_man, Jan 9, 2004
    How many of you believe that technical analysis (studying indicators, charting) is a valuable tool which is generally accurate, how many believe it is useless?
     

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  2. RacerX_GTO

    RacerX_GTO F1 World Champ
    Silver Subscribed

    Nov 2, 2003
    13,327
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    Gabe V.
    #2 RacerX_GTO, Jan 10, 2004
    There's a fine line between results orientation and kissing ass.

    I used to work at Intel and if anybody charted, planed, proccessed a way to use the restroom, they could and then doctor it up with the yearly objective "Great Place to Work!"

    Accuracy is only as good as the people entering the data. Are you fudging the numbers to meet criteria or are you really searching for a break in the process? If you are seeking to streamline a process to be cost effective then it serves a purpose, otherwise you are trying to look good for the boss.

    Give me news I can use otherwise file it in drawer #13.



    - Gabe
     
  3. atheyg

    atheyg Guest

    #3 atheyg, Jan 10, 2004
    The problem with TA is that it is almost an art as much as science. Things get blurry on the right side of the chart and subjectivity comes in, I would say it depends on who is using it and their experience.

    The basic indicators RSI,Stoch, and assorted osciallators are worthless and unreliable at best IMO and typically give signals too late or lag the big moves.

    Its like anything else, you can't read a book and be an expert right away, with many years of practice it can be accurate, not perfect but will greatly increase your odds in trading profitably and definately control big losses
     
  4. tonyh

    tonyh F1 World Champ
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    Dec 23, 2002
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    Tony H
    #4 tonyh, Jan 10, 2004
    I think TA definately has it's place in a professional trader's armoury. You need to apply common sense and be aware that the tech. picture can be blown apart by some unforeseen economic/World event, ie weak Non Farm Payroll fig y'day.
    I use TA to help me manage and hedge my option positions and find it very helpful to know where the mkt has support/resist. levels .
    Tony
     
  5. kenny

    kenny Formula Junior

    Nov 9, 2003
    376
    Greenwich , CT
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    Kenny
    #5 kenny, Jan 10, 2004
    I assume you're talking from the standpoint as an individual investor... Probably not very helpful there...

    TA is most useful from buyside trader's or market maker's standpoint running matched books, hedging leveraged positions, and calculating risk tolerances when to get in and out of large positions..
     

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  6. beast

    beast F1 World Champ

    May 31, 2003
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    Rob Guess
    #6 beast, Jan 10, 2004
    using TA for items like stocks can be a risky item at best since it is so volitile one thing that happens can blow it right out of the water.. ( 9/11 ) for example.

    Using them in engineering a solution of finding a trend of a failure of a part, They are worth there weight in gold and then some.
     
  7. ty (360mode)

    ty (360mode) Formula Junior

    Sep 25, 2002
    807
    Houston
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    Tim
    #7 ty (360mode), Jan 10, 2004
    TA always works for me in hindsight :) seriously though, i do look at MA's and a few others just to get an idea of trends and support/resistance. Bollinger bands have intrigued me but i wouldn't say that i've had good luck with it.

    i still say the best way to play the market is to be a contrarian - buy when everyone is selling and sell when everyone starts buying. you just have to have the ba!!s to consistently do it.
     

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