Re: Is Technical Analysis Really Works ???
Beginner, the problem with half cooked fundamental analysts (as with some technical analysts,particularly pattern traders) is that .......not realizing it is pure "luck".
As an author rightly put it, "Anything that cannot be programmed into a computer and backtested with reasonable historical data isn't wrong. It is worse than that...it is meaningless.....
Hello Oxus,
Although pattern trading is subjective, and difficult to backtest with computers, it doesn't mean the traders who follow pattern trade make their profits by mere luck.
First of all, IMHO computers are just a tool to aid help the traders to interpret the main element of trading - Price. As far as one interprets the huge information provided by the Price well enough, why we need to question their reliability.
Of course, indicators help to interpret the Price in more useful ways, but I feel interpreting price is more important. Even pattern traders will be using indicators when ever necessary.
As AJAY had told once in the chat room, remove all the elements from your chart - indicators, date, script name, time scale, etc. Just plot ONLY the price and try to interpret the message its telling.
Just my two cents.
Praveen.