Post
Topic
Board Trading Discussion
Merits 2 from 1 user
Re: Technical Analysis - logical explanation - Poll
by
atrocityx
on 21/06/2018, 08:58:17 UTC
⭐ Merited by Tytanowy Janusz (2)
I still standby that charts can only help you if you are experienced with how the markets work.  I am convinced that people don't in a general sense even understand the relation of USD/BTC/Altcoins and how the markets fundamentally operate and move. Technical analysis in my opinion basically is just zones or areas to look at it and apply it to the fundamentals, experience, market conditions, etc and making a sound decision off of all of these.   If nothing else, technical analysis is great discipline because the biggest mistake I see new traders making is they buy at the wrong times (which is awful because in trading this is seriously the only thing you have pure control over is when you buy a coin and at what price and what position it is in), and sell way too late or way too early, and they have no idea or inkling of what this looks like.  Traders, in general, cannot detach from their love of their coins, and don't have the discipline to sell even if it might continue going up, or sell at a loss to avoid disaster because they're just too busy being human and in euphoria.   So  EVEN IF NOTHING ELSE, trading on fibonacci zones or following just the "ABC" Elliott Wave correction theory where you don't buy into a correction until an established bulltrap.. or if there's a TK death cross or we're wicking hard on these moving averages with nowhere to fall to...then even if its not working correctly will most likely stop and give people some rules and things to look for so they don't base their decision purely on greed and emotion, and I almost guarantee that 9 out of 10 people would do better (even if the success of the technical analysis is purely coincidental on making them avoid emotional trading).  Technical Analysis isn't the key to trading... discipline and knowing how the markets work is... but the catch is technical analysis is needed to help form disciplinary habits.