In Defense of my Beloved Technical Analysis
So they say, ‘Technical Analysis is a Fallacy’… here is my humble defense in favor of our lovely charts, the darling of so many people like me. Who can’t do anything without looking at the moves and curves that our lovely lady (the market) reveals every single day.
Technical Analysis in short is any technique to analyze the markets or for that matter anything. The moment we use any technique to analyze anything, we are resorting to TA.
Technical Analysis is in Every aspect of our life:
The early medical world was perplexed at the complex body functions and were groping in the dark trying to find first the disease and then to cure it. But how to know what is going on in the body, for nobody can get inside nor could see it from outside. Somebody stood up and said,’ hey we have no clue what is happening inside, but there are few data’s that the body is sending outside, lets examine that and find out what’s happening inside’ . Data in the form of blood, urine, saliva, stool etc… I am sure he might have been called a lunatic, like all the guys who follow TA are called today… J Disgusting, you mean urine will show me what’s the problem with my pancreas… come on give me a break… some said.
So begin the era of Technical Analysis in Medicine. Medical tests usually take the data in the form of blood & urine, examine them and come out with a report ( J Chart) with Resistance levels and support levels, which usually reads, min value & max value. The doctor is not required to know what kind of chemicals and processes were employed in arriving at the report i.e. the chart or what kind of equipment were used, he is just required to take a decision based on the values and go ahead with his own treatment.
Similarly a trader using a TA is not required to know the logic behind the indicator values or the formulae in deriving the indicator, his job is like the doctors job, simplifying the decision making process by reading the report i.e. the chart. That’s all.
At times the weatherman is wrong, but can a fisherman ignore his warning…. No way.. sometimes the weatherman rings the warning bell too soon or too late, but he sure is right almost 90 % of the time. In the part of India where I live, recently a Cyclone alert was given in the Arabian sea and it was supposed to hit our coastal line, but in between it got diffused and went the other way. Now are we supposed to do away with our satellites that gave us the warnings…. That’s what people do with their systems and indicators, the moment they change the signal…. Come on grow up. The indicators don’t predict they follow the markets and will give you a ‘sense of direction’.
Technical analysis in nature is Lagging, but who said lagging things can’t give you a clue as to where your sugar level is heading, where the cyclone storm is heading, or where the markets are heading.
More about my journey with successful Technical analysis in the next post… if the moderators allow me to post a new thread and if you guys are interested...
So they say, ‘Technical Analysis is a Fallacy’… here is my humble defense in favor of our lovely charts, the darling of so many people like me. Who can’t do anything without looking at the moves and curves that our lovely lady (the market) reveals every single day.
Technical Analysis in short is any technique to analyze the markets or for that matter anything. The moment we use any technique to analyze anything, we are resorting to TA.
Technical Analysis is in Every aspect of our life:
The early medical world was perplexed at the complex body functions and were groping in the dark trying to find first the disease and then to cure it. But how to know what is going on in the body, for nobody can get inside nor could see it from outside. Somebody stood up and said,’ hey we have no clue what is happening inside, but there are few data’s that the body is sending outside, lets examine that and find out what’s happening inside’ . Data in the form of blood, urine, saliva, stool etc… I am sure he might have been called a lunatic, like all the guys who follow TA are called today… J Disgusting, you mean urine will show me what’s the problem with my pancreas… come on give me a break… some said.
So begin the era of Technical Analysis in Medicine. Medical tests usually take the data in the form of blood & urine, examine them and come out with a report ( J Chart) with Resistance levels and support levels, which usually reads, min value & max value. The doctor is not required to know what kind of chemicals and processes were employed in arriving at the report i.e. the chart or what kind of equipment were used, he is just required to take a decision based on the values and go ahead with his own treatment.
Similarly a trader using a TA is not required to know the logic behind the indicator values or the formulae in deriving the indicator, his job is like the doctors job, simplifying the decision making process by reading the report i.e. the chart. That’s all.
At times the weatherman is wrong, but can a fisherman ignore his warning…. No way.. sometimes the weatherman rings the warning bell too soon or too late, but he sure is right almost 90 % of the time. In the part of India where I live, recently a Cyclone alert was given in the Arabian sea and it was supposed to hit our coastal line, but in between it got diffused and went the other way. Now are we supposed to do away with our satellites that gave us the warnings…. That’s what people do with their systems and indicators, the moment they change the signal…. Come on grow up. The indicators don’t predict they follow the markets and will give you a ‘sense of direction’.
Technical analysis in nature is Lagging, but who said lagging things can’t give you a clue as to where your sugar level is heading, where the cyclone storm is heading, or where the markets are heading.
More about my journey with successful Technical analysis in the next post… if the moderators allow me to post a new thread and if you guys are interested...