Date: September 23rd, 2017 1:46 PM Author: Opaque House-broken Base Athletic Conference
The chart has the history of price action. It tells you what has already happened, which can give you an indication of what the current environment is. Charting is useful because it will tell you if what you think is going on or how you "feel" is supported or refuted by history.
I think anything more complex than trendlines, support and resistance and the big classical patterns (head and shoulders etc.) is largely bullshit.
but also OP ignores that if people BELIEVE in technical analysis it becomes a self fulfilling prophecy. oh, we're hitting this EMA/DMA? better buy/sell!
Date: September 23rd, 2017 1:59 PM Author: Opaque House-broken Base Athletic Conference
While this could definitely true, I'm not sure that the BIG (read: block) traders are using signals in that way tho, and they're the ones who really move the market. What you're saying makes sense in theory, I just think it's a little more complicated than that so I don't use that argument in support of TA
no, but the way it's done is not rigorous. almost everything in technical analysis can be back-tested, which means done properly technical analysis turns into quant investing.
the best analogy ive seen is technical analysis is to quant investing what alchemy is to modern chemistry.