Quote from: South Park on November 23, 2018, 03:35:23 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?

Your second point is mistaken, it is the other way around, if a new indicator can be proven to work in the market that indicator is going to stop working if everyone begins to use it, remember the majority cannot be profitable in the market because you are not generating money, money is just exchanging hands and for that you need to be part of a minority and if everyone knows about a particular indicator and how to use it then it stops working.

Not all the time Technical analysis give negative effects in cryptocurrency because mostly it help many of us to know what the real situation, Technical analysis is like an indicator if there are changes in the crypto price or in the market. But some of us don't believe to it because they used their instinct than the technical analysis which sometimes what there instinct is happen.