I love your accent! :D I suppose it's a common trend to say that, but I really do <3.
Since these patterns have worked in the past, it is assumed they will continue to work well in the future
This is the only bit that strikes me as odd in the arguments you mentioned. These patterns tend to repeat themselves, but seeing as we are heading into an unexplored market with contrasting views, I would also assume that the traditional way of seeing the market may change to adapt to the new rules. This would of course mean that new paradigms would arise that would require a ton of analysis and waiting up to see the changes in human behaviour.
Hey @louisthomas! Thanks for another interesting video! I am rather skeptical of TA, but Tone Vays has an interesting approach and also Datadash who mostly uses Simple tools like SMA often makes good calls. So there seems to be something to it, I just haven't had the time to have a closer look. The sentence you read/quoted, that all information is reflected by the price is very interesting. One thing that came to mind is that although countless factors always resemble the same result, can you really deviate or backtrack all information from it and predict its movement? Is one attribute(price/price action) really enough to predict the next move? Since it concentrates so much information into one attribute, the impression I get is the one from a hash function. One that always delivers the same result, but can never be backtracked to its original input. But that's just the train of thought of a traders-laymen, which is why I reside on the technological side of things. 😅
Thanks again for this interesting video!
Cheers - @sblue
Good one from @louisthomas, technical analysis is mostly work for an investor to determined market trend, I used fundamentals analysis which I found more reliable, thanks for this interesting topic.
Technical analysis (TA) provides a systematic means of analysing the market and most successful traders have utilised some form of trend following strategy. Using TA will not guarantee a trader a positive outcome but instead sets out to stack the odds in your favour when making a trade. It should be remembered that most TA indicators are lagging which means that their utility can be questioned. I think TA is a useful tool to determine trend direction and support and resistance levels but it is not a "magic bullet" particularly in a a volatile market like crypto.
The technical analysis is valid because many people are guided by it, there is a kind of consensus, we can appreciate it in the movements of the coins in Fibonacci levels. But in the case of cryptocurrencies it seems that the fundamental analysis is more important than the technical analysis.
90% just a bunch of self fufilling prophecy that occasionally nails it on the head. For the most part, if you took away the TA tool you would really see the lunacy of day traders.
i was skeptical about TA as well. but after continuing to do my research i was able to see the benefits and use of good TA. now im just trying to study up and learn more. it can only help having more knowledge... right???
Both. Technical analysis is a self-fulfilling prophecy.
Once day someone invented all these lines and charts and hey look at that peak, it lines up with this one...that means something. Soon everyone followed all these stochastics and MAs and everything else.
It is significant, BECAUSE people follow it and look at it the same way. People literally buy when something is about to hit a 200 MA, or 50 MA...and the candle bounces...amazing...it worked!
I don't think there is much more to it than that, but everyone has their own system and you should do what works best for you. Good luck to all.
Awesome video! Very strong case for technical analysis. I am not yet a master at technical analysis, but I am learning fast. It seems very reliable. One important point you didn't mention, is the fact that so many people use it. I think that with fundamental analysis there are always conflicting and confusing stories, and people don't always know how to make sense of them. However, with technical analysis, everyone is looking at the same set of data and looking to buy and sell at the same levels. Everyone mutually agrees to use the same data and indicators/patterns. I think that is what makes technical analysis so successful.
The argument that the technical analysis incorporates and integrates the effects of all the factors ( including the fundamentals ) is an interesting concept , it is hard to see how the occurrence of a sudden earth-shaking event can be predicted by a trend which is established before such an event has occurred or perhaps is even imaginable. I wonder if technical analysis works best in markets that are driven more by psychology than fundamentals. It may be just my ignorance but I see the cryptocurrency markets as a sphere that is rather short on fundamental data....as compared say to the banking sector. Perhaps technical analysis works better in predicting the price of Bitcoin than it does in guessing the future of Wells Fargo .
Thank you @louisthomas I have been a follower of your videos for some while now and, I agree with you fully. I recently kept my crypto holdings in my Nano Ledger for HODLing as I believe this is the best strategy for 99% of investors in the market. I think that short-term TA is risky and takes alot of practice and knowledge to nail but long-term TA can be a useful tool to determine entry and exit points to accumulate crypto and a good predictor or a bear and bull market. However, this should not mean that you take a 100% all-in approach and you should still compartamentalize some crypto in cold storage while maybe playing around with other crypto on exchanges for this sort of LT-TA. To any readers of this comment, I hope you check out my blog as I give my analysis on possible Altcoin gems in the Lower Market cap and why I believe they will explode in 2018/2019. Cheers Guys!
Technical analysis such as specific patterns like cup and handle for example doesn't seem to be as effective with crypto relative to stocks. I think partly because everyone who trades are aware at those price levels along with the volatile nature of crypto which seems to negate these specific patterns. Sometimes market analysis, trend lines, and intuition goes a lot further.
Good video. upvoted. Personally, I think technical analysis for coins/tokens is useless. Predicting this type of stuff is very dangerous and risky. It's all BS in my opinion.
I love your accent! :D I suppose it's a common trend to say that, but I really do <3.
This is the only bit that strikes me as odd in the arguments you mentioned. These patterns tend to repeat themselves, but seeing as we are heading into an unexplored market with contrasting views, I would also assume that the traditional way of seeing the market may change to adapt to the new rules. This would of course mean that new paradigms would arise that would require a ton of analysis and waiting up to see the changes in human behaviour.
Never get tired of hearing compliments. Thank you Sharon!
Amazing Idea of the post
Such a great video! Upvoted :)
Hey @louisthomas! Thanks for another interesting video! I am rather skeptical of TA, but Tone Vays has an interesting approach and also Datadash who mostly uses Simple tools like SMA often makes good calls. So there seems to be something to it, I just haven't had the time to have a closer look. The sentence you read/quoted, that all information is reflected by the price is very interesting. One thing that came to mind is that although countless factors always resemble the same result, can you really deviate or backtrack all information from it and predict its movement? Is one attribute(price/price action) really enough to predict the next move? Since it concentrates so much information into one attribute, the impression I get is the one from a hash function. One that always delivers the same result, but can never be backtracked to its original input. But that's just the train of thought of a traders-laymen, which is why I reside on the technological side of things. 😅
Thanks again for this interesting video!
Cheers - @sblue
Technical analysis is 50% good stuff, 25% mumbojumbo and 25% gambling lol
Good one from @louisthomas, technical analysis is mostly work for an investor to determined market trend, I used fundamentals analysis which I found more reliable, thanks for this interesting topic.
Technical analysis (TA) provides a systematic means of analysing the market and most successful traders have utilised some form of trend following strategy. Using TA will not guarantee a trader a positive outcome but instead sets out to stack the odds in your favour when making a trade. It should be remembered that most TA indicators are lagging which means that their utility can be questioned. I think TA is a useful tool to determine trend direction and support and resistance levels but it is not a "magic bullet" particularly in a a volatile market like crypto.
The technical analysis is valid because many people are guided by it, there is a kind of consensus, we can appreciate it in the movements of the coins in Fibonacci levels. But in the case of cryptocurrencies it seems that the fundamental analysis is more important than the technical analysis.
90% just a bunch of self fufilling prophecy that occasionally nails it on the head. For the most part, if you took away the TA tool you would really see the lunacy of day traders.
i was skeptical about TA as well. but after continuing to do my research i was able to see the benefits and use of good TA. now im just trying to study up and learn more. it can only help having more knowledge... right???
Both. Technical analysis is a self-fulfilling prophecy.
Once day someone invented all these lines and charts and hey look at that peak, it lines up with this one...that means something. Soon everyone followed all these stochastics and MAs and everything else.
It is significant, BECAUSE people follow it and look at it the same way. People literally buy when something is about to hit a 200 MA, or 50 MA...and the candle bounces...amazing...it worked!
I don't think there is much more to it than that, but everyone has their own system and you should do what works best for you. Good luck to all.
Awesome video! Very strong case for technical analysis. I am not yet a master at technical analysis, but I am learning fast. It seems very reliable. One important point you didn't mention, is the fact that so many people use it. I think that with fundamental analysis there are always conflicting and confusing stories, and people don't always know how to make sense of them. However, with technical analysis, everyone is looking at the same set of data and looking to buy and sell at the same levels. Everyone mutually agrees to use the same data and indicators/patterns. I think that is what makes technical analysis so successful.
I Resteemed your post
Yes I can never tell if it is bs or brilliance. :) Great video.
The argument that the technical analysis incorporates and integrates the effects of all the factors ( including the fundamentals ) is an interesting concept , it is hard to see how the occurrence of a sudden earth-shaking event can be predicted by a trend which is established before such an event has occurred or perhaps is even imaginable. I wonder if technical analysis works best in markets that are driven more by psychology than fundamentals. It may be just my ignorance but I see the cryptocurrency markets as a sphere that is rather short on fundamental data....as compared say to the banking sector. Perhaps technical analysis works better in predicting the price of Bitcoin than it does in guessing the future of Wells Fargo .
is there no common sense now or thinking it out for yourself ?
Thank you @louisthomas I have been a follower of your videos for some while now and, I agree with you fully. I recently kept my crypto holdings in my Nano Ledger for HODLing as I believe this is the best strategy for 99% of investors in the market. I think that short-term TA is risky and takes alot of practice and knowledge to nail but long-term TA can be a useful tool to determine entry and exit points to accumulate crypto and a good predictor or a bear and bull market. However, this should not mean that you take a 100% all-in approach and you should still compartamentalize some crypto in cold storage while maybe playing around with other crypto on exchanges for this sort of LT-TA. To any readers of this comment, I hope you check out my blog as I give my analysis on possible Altcoin gems in the Lower Market cap and why I believe they will explode in 2018/2019. Cheers Guys!
Technical analysis such as specific patterns like cup and handle for example doesn't seem to be as effective with crypto relative to stocks. I think partly because everyone who trades are aware at those price levels along with the volatile nature of crypto which seems to negate these specific patterns. Sometimes market analysis, trend lines, and intuition goes a lot further.
Good video. upvoted. Personally, I think technical analysis for coins/tokens is useless. Predicting this type of stuff is very dangerous and risky. It's all BS in my opinion.