Quote from: Ranly123 on October 19, 2018, 09:43:58 PM

Quote from: Embeco on October 16, 2018, 09:30:12 AM

I have to say upfront that I'm no fan of technical analysis, even in traditional asset markets. There are 2 main reasons for this:
1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.

This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.

At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.

In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.

What is your view on this?

I guess it only depends on how the analysis is done and how it will be shared to the public. I cannot tell whether it has a negative effect or it will give positive feedback to investors. I just presume that it only depends on how people understand the technical analysis that is done and shared.

If you could only understand what is technical analysis then you shouldn't worry that much on how it is being done. More people like traders does this all the time to predict their next move whether to buy or sell. But acquiring such knowledge of TA is much more harder than i've expected, it does drain you sometimes and does makes you tired because of thinking everything.